AWS bills you monthly for actual usage, with fees posted on the website and effective when updated. You must pay all charges without deducting any amounts you dispute, and AWS may bill more frequently if it suspects fraud or non-payment risk.
This analysis describes what AWS's agreement states, permits, or reserves. It does not constitute a legal determination about enforceability. Regulatory applicability and practical outcomes may vary by jurisdiction, enforcement context, and individual circumstances. Read our methodology
The requirement to pay without setoff or counterclaim means customers generally cannot withhold payment even for disputed charges, which removes a common contractual tool for managing billing disputes.
Customers must pay all AWS charges as billed without reducing the payment for disputed amounts, which limits the practical ability to contest erroneous or unexpected charges before payment is due. AWS can also increase billing frequency at its discretion if it believes there is payment risk, which could create cash flow complications for customers.
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"We calculate and bill fees and charges monthly. We may bill you more frequently for fees accrued if we suspect that your account is fraudulent or at risk of non-payment. You will pay us the applicable fees and charges for use of the Service Offerings as described on the AWS Site using one of the payment methods we support. All amounts payable by you under this Agreement will be paid to us without setoff or counterclaim, and without any deduction or withholding. Fees and charges for any new Service or new feature of a Service will be effective when we post updated fees and charges on the AWS Site, unless we expressly state otherwise in a notice.Excerpt from AWS's Customer Agreement
REGULATORY LANDSCAPE: Payment without setoff clauses are reviewed under general contract law and the Uniform Commercial Code in the US.
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The requirement to pay without setoff or counterclaim means customers generally cannot withhold payment even for disputed charges, which removes a common contractual tool for managing billing disputes.
Customers must pay all AWS charges as billed without reducing the payment for disputed amounts, which limits the practical ability to contest erroneous or unexpected charges before payment is due. AWS can also increase billing frequency at its discretion if it believes there is payment risk, which could create cash flow complications for customers.
ConductAtlas has identified this type of provision across 230 platforms. See the full comparison.
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