Amazon.com, Inc. (NASDAQ:AMZN) didn't just release its Prime credit card, but it's adding a new incentive - up to 5% cashback.
Amazon and Chase have co-launched a credit card for Amazon Prime members.
All cardholders will receive points in the amount of 5 percent on all Amazon purchases; 2 percent back on restaurants, gas stations, and drugstores; and 1 percent on all other purchases.
The new Amazon Prime Rewards Visa Card and a redesigned Amazon Rewards Visa Signature card.
Amazon's Prime credit card has been around for years, getting Amazon Prime subscribers 3% back on their Amazon purchases. Of course, to get it, you'll have to pay the yearly $99 fee for Amazon Prime. You'll need to be a member of the company's membership program to be eligible, but the card has other redeeming aspects, including no annual fee and no cost for foreign transactions.
The card also gives Prime members travel protection and 24/7 concierge service.
So what is it about this new store card which makes it so special? Additionally, consumers get a $70 Amazon gift card upon approval.
Amazon didn't say what would happen if cardholders lapsed on their Prime subscription.
Amazon introduced the Amazon Prime Rewards Visa Signature Card (as it's officially named) in partnership with Chase.
The previous Amazon card offered 3% off on its website, which may not have been enough to sway Costco loyalists. In October, Amazon also added free books and magazines to its Prime membership. Delivering customer value to grow loyalty over profits has been Amazon's strategy since the beginning. "With high rewards, a metal body, and no annual fee, this is a great option for regular Amazon shoppers". It should also be tempting to Costco customers who are driven by value, as Amazon has clearly trumped the warehouse club's offer for in-store purchases.