Amazon’s New Credit Card Gives Prime Members 5% Cash Back
Amazon has introduced a new credit card for its Prime members that gives cardholders an extremely lucrative reward.
The Amazon Prime Store Card gives Amazon Prime members 5% cash back on all Amazon purchases, not just purchases made on Prime. The 5% rewards come in the form of an automatic statement credit. For a limited time, newly approved cardholders will receive a $10 credit on their Amazon.com account.
The card was quietly introduced in March. Since it is a store card, it only works for Amazon purchases.
The card does not have an annual fee. It also offers six months of special financing on purchases of $149 or more, and 12 months on purchases of at least $599.
The huge drawback to the card is its interest rate. The card has a 25.99% variable APR, and the minimum interest charge is $1.50. So if you carry a balance on the card from one month to the next, you will pay a very steep financial penalty.
Amazon has made a significant push to increase the number of Amazon Prime members during the past year, and this card appears to fall in line with that strategy. Amazon Prime membership costs $99 annually and gives members free two-day shipping, Kindle rentals and streaming video.
The new Amazon Prime Store Card appears to compete directly with Target’s REDcard which gives cardholders 5% back on purchases at Target.
The new Amazon card is issued by Synchrony Bank.