If you make regular purchases on Amazon, using a credit card issued by Amazon to pay for those transactions is advantageous. However, just as customers have a bewildering number of alternatives to choose from when shopping on Amazon's website, the online store also provides a wide variety of credit card possibilities.
Amazon provides its customers with six unique credit card options, all of which are issued by one of three different financial institutions, each of which can come with one of eight potential reward structures. These structures change depending on whether or not the cardholder is a member of Amazon Prime and whether or not the card is used for personal or business purchases. The information you need to know about your choices and how to decide which is best for you may be found in the following paragraphs.
Amazon Prime Rewards Visa Signature Card
This card is an "open loop" card, which means it is accepted anywhere that accepts Visa and not only at Amazon. This card is issued by Chase and has the "open loop" designation. There is no yearly charge, but you must be an Amazon Prime member to use it. The cost of an annual membership in Prime is $139.
However, if you are a regular shopper on Amazon and make the most of all that Prime offers, then this card may be more than worth it. The price tag is hefty. It brings in:
- 5% cash back on all purchases made at Amazon and Whole Foods.
- 2% cash back at participating restaurants, convenience shops, and pharmacies.
- 1% cash back on anything else you buy.
The five percent success rate is quite impressive. If you spend a combined total of $2,800 per year at Amazon and Whole Foods, you would effectively break even on the annual price of an Amazon Prime membership. In addition to that, there is often a sign-up incentive associated with the card.
Amazon Rewards Visa Signature Card
What are your options if you are not an Amazon Prime member and do not want to pay the required membership fee but would still want to accumulate valuable rewards for your purchases with the retailer? Chase also issues the Amazon Rewards Visa Signature Card may be a suitable option for you. It is also open-loop, which means that it may be used anyplace that accepts Visa, and it earns the following rewards:
- Get a rebate of 3% of your purchase price on rewards at Amazon and Whole Foods.
- 2% cash back at participating restaurants, convenience shops, and pharmacies.
- 1% cash back on anything else you buy.
Amazon Store Credit Card
Synchrony is the financial institution that issues the Amazon Store Credit Card. This card, in contrast to the other products issued by Chase, is a closed-loop card, which means that it can only be used to make purchases at amazon. Depending on the kind of Amazon membership you have, you may choose between two distinct variations of this card:
Non-Prime members
On this card, you will not be able to earn Amazon points, but you will be eligible for unique financing alternatives instead. There are instances when you may be offered financing with equal monthly payments at 0% APR, and there are other occasions when you are given choices to delay interest.
Prime members
You can receive 5% back on your purchase from Amazon, or you may select customized financing. Only Amazon purchases qualify for the points you will earn, and you can either redeem them at the time of purchase or for a statement credit on the card after the transaction has been made. In addition, you will become eligible for special Prime card offers, which will allow you to earn additional points on various items and categories.
Amazon Secured Card
Additionally, Synchrony Bank is the issuing bank for the Amazon Secured Card. It, too, is a closed-loop system, and as a result, it can only be used at Amazon. However, this product is an anomaly; it is a shop credit card that needs you to make an initial security deposit as collateral before you can use it. (Minimum $100, maximum $500). Your credit limit will equal the amount you put down as your deposit.
The vast majority of shop credit cards are unsecured products, so customers are not required to deposit. The restrictions for shopping credit cards are often lower, which means that they are typically easier to get overall.
Therefore, why would someone want to use the Amazon Secured Card instead? First, it provides a low annual percentage rate (APR) that is locked in at 10%, which is much lower than the norm and might be handy if you need to carry a debt. To put this into perspective, the annual percentage rates (APRs) on many other shop cards may be variable and can reach around 30% in certain cases.
