Thursday, November 24, 2022

How Does An Amazon Credit Card Work

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Is This Card The Same As The Amazon Store Card

Amazon Credit Card Review 2021 – Amazon Visa and Amazon Prime Visa

The Amazon Prime Rewards Visa Signature card is not the same as the . To some shoppers confusion, Amazon also offers a store card that includes special and a 5% bonus on Amazon purchases when you subscribe to Amazon Prime. The Amazon Store card is not a general-purpose credit card it can only be used on Amazon purchases is issued by a different bank and features a much higher APR, so cardholders should take care not to mix the two cards up when applying.

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Amazon Rewards Visa Signature Card* Vs Amazon Business Prime American Express Card*

If you are an Amazon Prime member using Amazon for business purchases and want to enjoy 5% rewards, consider the . The card earns 5% back on the first $120,000 of purchases at Amazon.com, plus 2% back on purchases at U.S. restaurants, U.S. gas stations and wireless telephone services. The card earns 1% rewards on all other purchases.

In addition, the Amazon Business Prime American Express card comes with a host of travel and insurance benefits, including:

  • Baggage insurance
  • Car rental loss and damage insurance
  • Purchase protection
  • Extended warranty

The Amazon Business Prime American Express Card offers the following welcome bonus: Get a $125 Amazon.com Gift Card upon approval for the Amazon Business Prime American Express Card.

Amazon Prime Rewards Visa Signature Card Vs Citi Double Cash Card 18 Month Bt Offer

  • On Citibank’s Secure Website

The Citi® Double Cash Card 18 month BT offer is one of the few credit cards that lets you Earn 2% on every purchase with unlimited 1% cash back when you buy, plus an additional 1% as you pay for those purchases. This applies regardless of where you shop meaning you’ll earn 2% back whether you’re shopping on Amazon.com or purchasing movie tickets.

While the Citi® Double Cash Card 18 month BT offer doesnt give you the same 5% reward on Amazon purchases that you can get with the Amazon Prime Rewards Visa Signature Card, the unlimited 2% rate takes the guesswork out of earning rewards. Unfortunately, though, the Citi® Double Cash Card 18 month BT offer comes with no welcome offer whatsoever.

If Amazon.com makes up a large chunk of your total purchases, the Amazon Prime Rewards Visa Signature Card is the better deal. However, if your spending is more varied, go with the Citi® Double Cash Card 18 month BT offer instead.

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Is The Amazon Prime Rewards Visa Signature Card Worth It

For existing Prime customers, the Amazon Prime Rewards Visa Signature Card could help you save big. Although there’s $0 annual fee, think of the $119 Prime membership cost as part of the requirement to open this card. Still, only frequent Amazon or Whole Foods shoppers should consider this card above other options, as other cashback cards can help you earn bonus rewards on a wider variety of purchases.

How Do Amazon Credit Card Rewards Work

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When youre ready to redeem the cash back youve earned , youll get the most value from: statement credits, which reduce the amount you owe on your , or Shop with Points, which lets you pay for Amazon purchases with the points youve accrued.

While both are good redemption options, wed recommend using your points for statement credits. Why? If you use your Amazon points to cover a purchase, youll miss out on the 3%5% cash back rewards you wouldve earned by paying with your Amazon credit card.

If you just love the feeling of getting a purchase for free, however, heres how Shop with Points works: Once youve added your credit card to your Amazon account, youll see your available rewards at checkout.

You can apply your rewards points immediately to your balance, or save them for next time. If you dont have enough points to cover your purchase, you can put the balance on what else? your Amazon credit card.

How to Shop with Points with Amazon credit cards. Image credit:

You cant buy everything on Amazon through Shop with Points, though. Excluded items include: Amazon Kindle downloads, digital music, Amazon video titles, Amazon Appstore apps, AmazonFresh items, Subscribe and Save items, Magazine subscriptions, Pre-order items, Textbook rentals, AmazonAllowance and Reload your balance . Oh, and if youre a fan of one-click shopping , you cant use that with points either.

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How Does The Amazon Credit Builder Work

After submitting your application and being approved for an Amazon Card, you will have to make a refundable security deposit .

In this case collateral is money that you give to Amazon in case you fail to make the promised payments, Amazon can use the collateral to recoup the losses.

This deposit will act as your credit line.

What is a line of credit?When talking about credit cards, a line of credit is the limit or maximum amount of money you can borrow with your card.

So, if you deposit $100, thats the maximum amount youll be able to spend with your card.

If you have made all of your payments in full, the deposit can be refunded if you close your account. If you havent made all your payments, the remaining balance will be deducted from the deposit.

With the Credit Builder, you can make payments on anything ranging from buying new equipment to getting inventory.

Like a regular credit card, to pay off your debt, you simply make monthly payments either equal to the full balance or a minimum payment.

Learn the Dos and donts when using a credit card.

What’s To Like About The Amazon Secured Card

This card offers a way to rebuild your credit with no annual fee and few other fees. And although it’s a store card that’s not part of a larger payment network, Amazon is one of the largest stores in the world, with a selection of over 100 million items.

Better yet, Prime members are able to receive 5% back by using an Amazon Prime Store Card, including this secured card version. Prime members can choose a promotional financing option instead of receiving 5% back on their purchases.

Most important, you can qualify for this card with bad credit, and balance and payment information will be reported to the major consumer credit bureaus to help get your credit score back on track. This option helps customers rebuild their credit when they aren’t able to qualify for a standard, unsecured credit card.

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Is The Card For You

The Amazon Rewards Visa can be a solid option for occasional Amazon shoppers who are not Amazon Prime members. Its 3% earnings on Amazon purchases are generous and the ancillary benefits provided with the card are best-in-class among no-annual-fee cards. However, if you are an Amazon Prime member, the Amazon Prime Rewards Visa is the card for you.

If youre not a heavy Amazon or Whole Foods shopper, consider a straight 2% cash back card like the Citi Double Cash. This will allow you to match the 2% back at restaurants, gas stations and drug stores but also earn 2% back on all other purchases as well .

Amazon Equal Pay Financing

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Equal Pay is similar to Monthly Payments, but offers much longer payment plans for large purchases based on the size of your purchase.

This payoff period ranges from six to 24 months on the Amazon store card and from six to 18 months on the Amazon Visa cards. The latter cards also require a lower minimum purchase price to take advantage of a payment plan.

Equal Pay options on Amazon store cards from Synchrony include:

Offer period
18 months $500

Like Monthly Payments, Equal Pay allows you to split the cost of your item equally across the offer period. As long as you make your installment payments on time and in full, you wont be charged any interest or other fees.

Instead of charging installments on a monthly basis, however, Equal Pay charges you for the total purchase amount when your item ships. Your required installment payment is then included as part of your minimum payment due each card statement period. This could get a bit confusing if youve used your Amazon credit card for new purchases in addition to an Equal Pay purchase.

Luckily, Chase makes it clear what you need to pay to avoid interest on new purchases by listing an Interest Saving Balance on your statement. Your Interest Saving Balance includes both the monthly payment due as part of your Equal Pay plan and any non-promotional balances you have. As long as you pay your Interest Saving Balance in full, youll avoid interest charges and be on track to pay off your Equal Pay purchase.

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Alternative Rewards Credit Cards

Unsurprisingly, the Amazon credit cards mentioned above arent the only options that you have! Consider these other travel rewards cards that we really like:

CHASE CARD
UPs Bonus Valuation*:$1,200Must Reads: For more info on the Chase Sapphire Preferred, see our thoughts on its benefits and travel insurance coverage, which includes primary car rental insurance. Take a look at our full review to see why its one of our favorite cards.

Bonus: Purchase Amazon.com gift cards from office stores using the Ink Business Preferred and youll get 3pts/$1 spent.

As Chase Ultimate Rewards can be used for amazing travels, this card is great for those wanting to not only get rewarded for spending at Amazon, but also for a multitude of other business purchases.

For information on other alternative cards, check out our piece on .

Citi Double Cash Card: Best For Cash Back

If you want to keep just one credit card in your purse or wallet to earn cash back on everything you buy including your Amazon purchases the Citi Double Cash Card is the way to go. Youll earn 2% cash back 1% when you buy, and another 1% when you pay your statement on all your purchases 365 days a year.

Thats a great return for a no-annual-fee card, and its simple you dont have to worry about bonus categories or figuring out complicated travel points. The cards simplicity and solid earning rate is why CNN Underscored chose the Citi Double Cash as its benchmark credit card, and why we use it to compare and contrast other credit cards we review.

Related: Read CNN Underscoreds review of the Citi Double Cash Card.

Where the Citi Double Cash lags is in its shopping benefits. Unfortunately, the card no longer comes with damage and theft purchase protection, return protection or Citis previously well-known Price Rewind benefit.

So despite earning great cash back on your purchase with the Citi Double Cash, if youre buying something expensive, you might want to choose a card that has you covered in the event your item is broken or lost, or you potentially want to return it after the merchants return policy has ended.

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Why You Might Want A Different Card

You don’t shop at Amazon or whole foods much

Unless you’re doing a significant amount of shopping through Amazon or at Whole Foods, it doesn’t make sense to apply for the Amazon Prime Rewards Visa Signature Card. For starters, Amazon isn’t always the cheapest option especially when you factor in the cost of a Prime membership and Whole Foods didn’t earn the nickname “Whole Paycheck” for carrying budget-minded fare. If you aren’t into membership fees and you’re looking for low prices, consider applying for a different co-branded credit card from a different ubiquitous retail behemoth: namely, the Capital One® Walmart Rewards Mastercard®. The card offers similarly generous rewards for shopping under the Walmart umbrella: 5% back on purchases at Walmart.com 2% back on in-store purchases at Walmart , as well as on travel and restaurant expenses and 1% back on all other purchases. And like Amazon, Walmart also carries just about any item you can think of. The difference? No annual membership fee is required to hold the card.

The Amazon Rewards Visa Card

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The Amazon Rewards Visa Card was launched in 2017. It is also offered in two iterations, for Prime and non-Prime members. New cardholders can get an Amazon gift card upon approval. Both cards have an that ranges between 14.24% to 22.24% depending on the cardholder’s credit score.

The card is available to any registered Amazon customer. There is no annual fee and the card doesn’t charge foreign transaction fees. This card is offered by Chase Bank. The Rewards Visa Card rewards cardholders through cash back on multiple levels.

Amazon Rewards Visa cardholders can earn 3% cash back on purchases made through and at Whole Foods. These cardholders earn 2% cash back on purchases at restaurants, gas stations, and participating drug stores. Rewards Visa cardholders can also earn 1% cash back on any other purchases.

Cardholders with an Amazon Prime membership get approved for the . These cardholders earn an additional 5% on Amazon and Whole Foods purchases.

Using the cash back can help offset the cost of the yearly Prime membership fee of $119. Prime members who spend about $200 a month or more at Amazon will essentially recover the annual fee.

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There Are Other Amazon Credit Cards Out There

The Amazon Prime Rewards Visa Signature Card isnt the only Amazon card there are several choices you can consider.

  • Amazon.com Store Card
  • Amazon Rewards Visa Signature Card
  • Amazon Prime Rewards Visa Signature Card

You can only use the two store cards on Amazon.com.

The other Amazon Visa card is similar to the Amazon Prime Rewards Visa Signature Card in that you can use it elsewhere, but it doesnt require an Amazon Prime membership. It also only gives you 3% back at Amazon.com and Whole Foods.

Also, know that youll be considered only for the card you apply for, so be sure to apply directly for the Amazon Prime Rewards Visa Signature Card if thats the card you want.

Amazon Prime Rewards Visa Signature Card Overview

The Amazon Prime Rewards Visa Signature Card is one of the best online shopping credit cards due to its high reward rates on Amazon purchases with no spending caps and Visa Signature benefits.

The biggest drawbacks are the required Amazon Prime membership and a few missing purchase protectionsbut these are minor nitpicks compared to what many other store cards offer.

Want more details? Jump to the following sections:

  • Requires an Amazon Prime membership, which costs $119 per year
  • Only one Amazon Prime account can be linked to this card
  • Reward points cant be transferred to other loyalty programs
  • Although its a Chase credit card, it doesnt have access to the Chase Offers or Chase Ultimate Rewards portals

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So How Long Do I Have To Wait

Combining a minimum of 2 days of shipping with the processing times for Amazon and your financial institution, heres how long it could take you to get a refund from the time your return enters the mail system to the time the money appears back in your account:

Instant refund :

  • Gift card: 0 calendar days.

Standard refund:

Exclusive Financing Options For Amazon Prime Store Card Customers

Whats An Amazon Prime Credit Card? I The Pros & Cons

Amazon offers two financing options if you have its Amazon Prime Store Card: equal monthly payments and special financing. Your eligibility for either option is subject to credit approval. Use the table below to compare these options.

Special financing Equal monthly payments
How is the purchase charged to your account? Upfront you may need to make more than the minimum monthly payment to avoid paying interest. The purchase total is split into equal payments and is paid off within a certain time frame .
How do you avoid interest and fees? Pay off the promotional balance off in the time frame allotted. Payments do not have to be equal from month to month. Make your payments on time every month. If you miss a payment, you will be charged a late fee, which will be assessed interest until paid.
How long does it take to pay off your purchase? Your billing statement will include information about how long it would take to pay off the purchase if you make the minimum payment. As long as you make each payment on time, your purchase will be paid off at the end of the offer period.
What is the longest term offered? 24 months, for purchases of $800 or more. 24 months, for purchases of $600 or more.

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Amazon/prime Store Cards At A Glance

n/a Must have a current Amazon Prime membership

As this is a store card, it can only be used at a major drawback for consumers who need a credit card for everyday purchases outside of Amazon.

The main benefit of this card is the special financing, which you may also see advertised as 0% Purchase APR for 6-24 months. Plus, if youre a Prime member, youre granted the additional 5% back.

The breakdown for special financing as follows:

  • 6-month special financing on any purchase totaling $149+
  • 12-month special financing on any purchase totaling $599+
  • 24-month special financing on select Amazon-sold items

Word to the Wise

One thing to note with special financing: it is defined as no interest if paid in full within This means that if you pay off your balance in full by the end of the allotted time period, youve succeeded in stretching out your payments with 0% APR.

However, if you dont, deferred interest is applied. Deferred interest means the full standard APR will be charged to your account for every month back to the purchase date. This can be a financial nightmare, especially for big-ticket items.

Additional Comments

In terms of application, all consumers apply initially for the Amazon Store Card. If youre approved and noted to have an eligible Amazon Prime membership, youll automatically be upgraded to the Amazon Prime Store Card.

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