Amazon Credit Card – If you’re a frequent shopper at Amazon.com, you may have considered getting one of its credit cards in order to earn maximum rewards from every purchase you make. But in case you’re confused about which card you should go for, take your time to go through this article and make your evaluation in order to find out which card would suit your need.
Amazon Credit Card
In case you don’t already know, Amazon credit cards are issued in two varieties:
- The Amazon store credit card (can only be used to carry out transactions within Amazon stores)
- Amazon Rewards Visa Signature Card the ones issued with a Visa logo.
These cards both have their benefits and drawbacks. In this article, we’ll be considering the major benefits and drawbacks of both cards.
Types of Amazon Credit Cards
Like I mentioned earlier, there are two main varieties of Amazon credit cards. The first is the Amazon store credit cards which is issued by Synchrony Bank; the second one is the Amazon Rewards Visa signature card that are issued by Chase Bank.
The Major difference between these two types of cards is that the Amazon Rewards Visa Signature card can be used anywhere Visa cards are accepted. In other words, you can use it to carry out transactions on other online or offline shopping platforms or services – as long as such platforms, shops or services accept Visa cards. But on the other hand, the Amazon store credit cards have constraints; hence, they can only be used within Amazon.com stores only for purchases. As you’ve known, the Amazon store credit card lacks flexibility (it cannot be used anywhere but on Amazon stores), unlike its rival – Amazon Rewards Visa Signature Card (which can be used anywhere Visa Cards are accepted).
Worth knowing, these two variety of cards have different tiers – One is for Amazon Prime customers only, while the other is for everybody. These tiers have different rewards rates and benefits. For example, Amazon Prime cardholders get more rewards and benefits than the ordinary cardholders.
Below are the four different types and tiers of Amazon credit cards
- Amazon Rewards Visa Signature Card
- Amazon Prime Rewards Visa Signature Card
- Amazon.com Store Credit Card
- Amazon Prime Store Credit Card
Let’s compare the rewards and benefits on both cards
Amazon Rewards (Prime) Visa Signature Card Rewards & Benefits
Let’s discuss the rewards and benefits attached to the two Visa co-branded cards – Amazon Rewards Visa Signature Card and Amazon Prime Rewards Visa Signature Card.
Amazon Rewards Visa Signature Card has a reward program that allows cardholders to earn 3% back on Amazon.com purchases, 2% back at gas stations, drugstores, and restaurants, and 1% back on every other purchases. These rewards can be used to pay for purchases on Amazon.com, just like Amazon gift cards.
The good stuff about this card doesn’t stop there. Cardholders are also exposed to various travel benefits, such as:
- Travel and emergency assistance
- baggage delay insurance
- lost luggage reimbursement
- Travel accident insurance
This card also has access to Visa Signature ® benefits, like the Visa Signature Concierge Service.
The Amazon Prime Rewards Visa Signature Card also has all these rewards and benefits, with a small difference. The difference is that its reward rate goes up to 5% for Amazon.com purchases, unlike Amazon rewards Visa Card which is 3%. Note: Both of these cards do not have annual membership fee.
Amazon Store Credit Card & Amazon Prime Store Card
The Amazon Store Card comes with its own unique benefits and rewards, with a handful of drawbacks too. Like I earlier mentioned, this category of card cannot be used to make purchases anywhere else but Amazon.com. The reason is that it’s not a Visa card, neither is it a MasterCard. It is an intra-Amazon card, which means its usability starts and stops at Amazon.com (it cannot exceed it). Also, for this same reason, cardholders cannot earn rewards on other types of purchases. That’s not all; they are not also exposed to the travel or Visa Signature® benefits, which its rival features.
Just like the Visa cards, the Amazon Store credit card and Amazon Prime Store credit card also earn 3% & 5% back, respectively, on Amazon purchases.
One unique benefit of the store card is that it gives cardholders the privilege to choose promotional financing. For example, when a cardholder purchases items of $149 (or more), he qualifies for six-month deferred interest financing. Also, purchases of $599 (or more) qualifies users for special 24 months deferred-interest financing. This is a cool benefit apart from a little drawback, which is if cardholders don’t pay off their entire purchases by the end of the promotional period, they would be charged interest fee.
Amazon credit card interest rates
Now let’s also compare and contrast the interest rate of both cards.
Both Amazon Rewards Visa Signature Card & Amazon Prime Rewards Visa Signature Card have variable interest rates depending on cardholders’ creditworthiness. The APR range is currently 15.24% to 23.24%. Note: the rates will vary depending on the base rate.
On another note, both of the Amazon store credit cards charge all customers the same variable APR. At the moment, it is unsurprisingly on the high side – 26.99%.
Additional information of Amazon.com credit card
You will get a $50 Amazon.com gift card (Prime members will get $70) loaded into your account immediately your credit card application gets approval.
You can redeem your points and use it at checkout on Amazon.com. Another cool thing here is that there’s no constraints attached to spending your reward balance, hence, you can pay for all or part of your purchases with the points you earned (no matter how small or big it is). In other words, no matter how much reward points you have available, you can apply the entire reward balance towards paying for the purchase you’ve made before using other payment options for the remaining transaction.
Note: Your reward points will appear as a payment option during checkout at Amazon.com.
Amazon Credit Card Summary
Below is the general summary and additional information of Amazon credit card.
|Max Late Fee||$37|
|Max Penalty APR||None|
|Grace Period||21 days|
|Cash Advance||5% (min $10)|
|Cash Advance Rate||26.24% (variable)|
|Foreign Transaction Fee||None|
|Smart Chip||Available, Chip & PIN|
Conclusion on Amazon credit card
You have seen the good sides and drawbacks of all the Amazon credit cards. The rewards of these cards are in many ways better than most standard credit cards out there. As I have earlier emphasized, the Prime members are most likely to get the best out of these cards. Although, there is no much difference between both tiers of cards. So whether you’re a Prime member or not, as long as you’re a frequent shopper, you’ll definitely make the best out of these cards.
If you’re the kind of person that wants flexibility, that is, if you would like to use your credit card on other shopping platforms or online services (not only on Amazon.com), then you should consider the Visa-branded cards, that would a best fit for you.
On another note, if you’re planning on financing a larger purchase and wish to pay it off without interest, then the store credit card could be the right card for you. Now this would be more beneficial to consumers who sometimes forget to claim their rewards.