Note applicants must already be Amazon Prime members, which charges a $99 annual fee, to earn realize the 5% statement credit.
This means a cardholder needs to make $2,000 in Amazon.com purchases to cover the cost of Prime membership, if that is their only reason the have the Amazon Prime credit card.
Amazon offers students at qualified education institutions Prime student memberships for $49 per year, but only up to a maximum of years, thereafter the user is automatically billed the normal $99 annual fee.
For those unfamiliar with Amazon Prime here are some of its benefits:
- FREE Two-Day Shipping on eligible items (some restrictions apply)
- FREE Same-Day Delivery in eligible zip codes.
- Unlimited, ad-free access to over a million songs
- Instant streaming of movies and TV shows with Prime Instant Video
- Prime Pantry
- Membership Sharing
Carefully read the terms and conditions before deciding if it the right card for you.
Incidentally it actually is a paper card, not a the usual plastic card issued by banks.
Amazon.com offers interest-free promotional offers on some items, but these purchases DO NOT receive the 5% cashback statement credit.
Apply for Amazon store card here (Prime members automatically get Prime Card).
The card is issued by Synchrony Bank (previously doing business as GE Capital Bank) and has these features:
- No annual charge
- Zero fraud protection on unauthorized purchases
- Automatic monthly payment options
- 23-day no interest grace on purchases when card has zero balance at beginning of billing cycle.
However many people have complained of being charged interest on purchases immediately. The Synchrony agreement clearly states:
“We charge interest on your purchases from the date you make the purchase until you pay the purchase in full.
We will not charge you interest during a billing cycle on any purchases only if:
1. You had no balance at the start of the billing cycle; OR
2. You had a balance at the start of the billing cycle and you paid that balance in full by the due date in that billing cycle.”
Compare this the Amazon Visa Card from Chase Bank which offers 3% cashback on Amazon.com purchases before deciding on getting the Amazon Prime store credit card.
There is only a 2% difference in cashback offers and the Visa card has no annual fee obligation whatsoever.
If free shipping is important, you can search for free shipping offers by retailers at freeshipping.org.