Merchant Innovation

Amazon’s Prime Store Card Comes With Cash-Back Perks

Amazon is adding to its offerings through Amazon Prime. This time around with an Amazon credit card that will pay back 5 percent of every item ordered through

As Re/code reported on Wednesday (July 22), the movement to offer the card comes along with continued efforts to bring new consumers to the membership program that rewards loyalty.

The Amazon Prime Store Card debuted in March, and as Re/code said on Wednesday, marketing efforts have been both relatively slow and quiet. The eCommerce giant has not conducted a publicity campaign on the card, which has no annual fee. Under the terms of the Prime card, members get 5 percent back on purchases, a reward that comes in the form of a statement credit on all Amazon orders, and are not restricted to Prime purchases. There are also what Re/code terms “promotional financing options.”

The Prime program, as is well known, costs members $99 a year, with two-day shipping attendant with media streaming offers. Re/code stated that the card program offers Amazon a benefit in terms of lower transaction fees on purchases that consumers make with the Prime cards. That would be tied to the fact that “store-branded” cards have lower fees than ones used through the major networks with Visa and MasterCard and American Express.

And, as Re/code posited, the Amazon card might be a “shot across the bow” at Target, famed for its REDcard that also offers 5 percent back for items bought through the site.

As an unnamed representative of Target stated in an interview with Re/code, “While others may try and replicate parts of this offering, we think REDcard paired with exclusive, only-at-Target merchandise and great prices on everyday essentials is an unbeatable value proposition.”


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