Amazon Credit Card: The Benefits, Rewards And Costs

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. If you are confused about which Amazon credit card you should go for, take your time to read this post and make your evaluation in order to find out which card will suit your need. Check out Amazon Prime Now Review here.

Amazon Credit Card

Prime Store Card

Prime Store Card

In case you don’t already know, Amazon credit cards are issued in two varieties:

  1. The store credit card (can only be used within its stores)
  2. Rewards Visa card, the ones issued with a Visa logo (can be used anywhere).

These cards both have their benefits and drawbacks. In this post, we will be considering the major benefits and drawbacks of both cards.

Types of Amazon Credit Cards

The company has two main types of credit cards. The first is the store credit card which is issued by Synchrony Bank; and the second one is the Rewards Visa card that is issued by Chase Bank.

The Major difference between these two types of cards is that the Rewards Visa 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 store credit cards have constraints; hence, they can only be used within Amazon.com stores for purchases of its merchandise. As you may have noticed, the store credit card lacks flexibility (it cannot be used anywhere its stores), unlike the Visa version (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, Prime cardholders get more rewards and benefits than the ordinary cardholders.

Below are the four different types and tiers of the credit cards

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

Let’s compare the rewards and benefits on both cards

Amazon Rewards (Prime) Visa Card Rewards & Benefits

Let’s discuss the rewards and benefits of the two Visa co-branded cards (Rewards Visa Card and Prime Rewards Visa Card).

The Rewards Visa Card has a reward program that allows cardholders to earn 3% back on its store 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 its stores, just like 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 Prime Rewards Visa  Card also has all these rewards and benefits, with a small difference. The difference is that its rewards rate goes up to 5% for its store purchases, unlike the 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 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 store card and Prime store 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.

The Interest Rates

Now let’s also compare and contrast the interest rate of both cards.

Both the rewards Visa signature card & 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 store credit cards charge all customers the same variable APR. At the moment, it is unsurprisingly on the high side – 26.99%.

More On Amazon.com Credit Card

You will get a $50 Amazon.com gift card (Prime members will get $70) loaded into your account immediately your application is approved.

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.

Summary

Below is the general summary and additional information about the cards.

Max Late Fee$37
Max Penalty APRNone
Max OverlimitNote
Grace Period21 days
Cash Advance5% (min $10)
Cash Advance Rate26.24% (variable)
Foreign Transaction FeeNone
Online ResponseYes
Smart ChipAvailable, Chip & PIN

Conclusion on Amazon credit card

You have seen the good sides and drawbacks of all the 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. Check out Prime Video Review here.

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