To provide shoppers with an eCommerce points redemption option, Capital One rewards cardholders will soon have the ability to redeem cash back as well as miles through Amazon. The company joins Citi, American Express, Chase and Discover in offering the option, CNBC reported.
A Capital One spokesperson said, according to the outlet, that the rollout date for the feature is set to launch “in the coming weeks.” Cardholders will be able to use as few or as many rewards as they wish for Amazon.com purchases. Cardmembers can enroll by adding a Capital One rewards card that is eligible to their Amazon accounts. They will be automatically enrolled if they already have an eligible card linked to their Amazon accounts.
Cardholders can also opt out at any time, and they can redeem rewards for a maximum of a 1:1 value. The cash-back credit card redemption value will be a dollar in rewards for a dollar in Amazon. The travel credit cards offer 125 miles for a dollar on Amazon. That, according to CNBC, is a quarter less value than cash-back redemption but similar to other points as well as miles and points rewards cards.
In separate news, Capital One’s domestic card business provided strong Q3 earnings results, and continued to pick up momentum, the bank said on Oct. 24. The company said that, as of the end of the third quarter, the domestic card loans ending balance stood at $104.7 billion, an increase of $1.7 billion.
Credit card loans increased 1 percent to $113.7 billion, an increase of $1.5 billion. The bank also reported that non-interest expenses increased 2 percent to $3.9 billion. For Q3, the bank said provision for credit losses increased 3 percent to $1.4 billion.
Capital One CEO Richard Fairbank said in a post-earnings conference call with analysts that, pulling into the third quarter, the company’s domestic card business “continued to deliver strong results and gain momentum.”