Amazon to Launch Credit Card for Prime Members
January 11 2017 - 7:29AM
Dow Jones News
By Robin Sidel
Amazon.com Inc. is trying to ring up more sales with a new
credit card aimed at its most loyal customers.
The online retailer is introducing a new card for Prime
customers offering 5% back on all Amazon.com purchases. The card,
issued by J.P. Morgan Chase & Co. and branded with the Visa
Inc. logo, doesn't have an annual fee or foreign-transaction
fees.
The card represents the latest in many offers that are
increasingly popular with consumers because they provide cash or
discounts on future purchases. "We are adding even more value to
Prime by offering rewards on Amazon and everywhere else you shop,"
Max Bardon, Amazon vice president said in a press release.
Amazon doesn't disclose how many customers are members of its
Prime service, which typically costs $99 a year in exchange for
free two-day shipping on eligible purchases, video streaming and
other features.
Amazon already offers a Chase-Visa rewards card. Existing
cardholders who have Prime membership will be upgraded to the new
card. In addition to the 5% cash back on Amazon.com purchases,
cardholders will get 2% back at restaurants, gas stations and
drugstores and 1% back on all other purchases.
The Amazon rewards are deposited as points in a customer's
account and can be redeemed for Amazon items. Customers can also
choose to receive a credit against items purchased.
Chase and other issuers previously have offered as much as 10%
cash back on Amazon.com purchases in limited promotions. Amazon
said it is also eliminating foreign-transaction fees on its basic
rewards card.
Amazon also offers so-called store cards that can only be used
on its products.
Write to Robin Sidel at robin.sidel@wsj.com
(END) Dow Jones Newswires
January 11, 2017 07:14 ET (12:14 GMT)
Copyright (c) 2017 Dow Jones & Company, Inc.
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