How Amazon Financing Works

Amazon has a unique positioning for offering credit. It has 200+ million Prime subscribers, millions of users trafficking its platform, and over 2.5 million sellers. Like other retailers, this creates a huge opportunity to offer customers credit products and financing options. Moreover, its platform for sellers also creates an opportunity to provide business credit.

Amazon's foray into financial services has always been about building opportunities for spending within the Amazon ecosystem. The company has historically been active in several fintech areas, particularly online payments. Then in 2011, it launched small business lending, and from there started to roll out different credit card products for both its small business and consumer users.

Read more about how Amazon's financing options work and what they have to offer.

Key Takeaways

  • Amazon offers customers several revolving credit options.
  • Amazon’s most popular credit cards are the Amazon Rewards Visa Card, Amazon Prime Rewards Visa, and Amazon Store Card.
  • Amazon also offers small business credit options, including Amazon Business Prime American Express.

What Is Amazon Financing?

Amazon financing encompasses a range of credit product and service offerings to help consumers and small business customers pay for purchases over time. Terms and conditions vary depending on creditworthiness, and loan structures inlcudes both installment and open-ended credit arrangements.

Small Business Lending

Amazon launched small business lending for its sellers in 2011. Not highly publicized, the lending was cautiously offered to sellers based on Amazon's selling criteria. Since its launch, Amazon's small business lending has issued over $5 billion to small businesses on its platform. Its offering continues to be on an invitation-only basis.

Amazon Credit Card Options

Financing is available to Amazon users through four credit card options—the Amazon Rewards Visa Card, the Amazon Prime Rewards Signature Visa, the Amazon Store Card, and the Amazon Secured Card. Applicants receive a credit limit based on their credit score and other screening factors if approved.

200 million+

The number of Amazon Prime members in the U.S. as of the end of 2022.

The Amazon Store Card

The Amazon Store Card was rolled out first in 2015. It has two iterations. One card is provided for Prime members and the other for non-Prime members.

The Amazon Store Card has no annual fee. It is offered in partnership with Synchrony Bank. Cardholders with a Prime membership can use the card to get 5% cash back on any purchase made with Amazon.

The Amazon Store Card can only be used on Amazon.

All approved cardholders get an Amazon gift card. Promotional financing and special financing options are available. Customers can choose either equal monthly payments or special financing after choosing the Amazon Store Card as their payment method.

Equal Monthly Payments:

  • Six equal monthly payments when financing purchases between $50 and $599.99
  • 12 equal monthly payments when financing purchases of $600 or more
  • 24 equal monthly payments when financing select purchases

With these options, cardholders make equal payments on purchases made through Amazon at a 0% annual percentage rate (APR) for the duration of the financing period. The required amount under this option is the purchase price, including tax and shipping, which is divided equally by the length of financing. So, if you purchase something for $450, you have six months to pay it off. Your payments would be $75 per month ($450 ÷ 6).

Customers who carry a balance beyond the term of the financing incur a late fee until the balance is paid in full. Interest is also assessed on the full promotional balance from the date of the purchase.

The other option is special financing, which also has three tiers:

  • Six months of special financing on purchases of between $150 and $599.99
  • 12 months of special financing on purchases of $600 or more
  • 24 months of special financing on select purchases

Customers don't pay interest if the entire purchase is paid off within the specified time, but monthly minimums are required. Any balance that remains incurs interest and a late fee. The APR is 25.99%, and interest is also assessed on the full promotional balance from the date of the purchase, even if you've made payments. This means it's in your best interest to pay off the card before the specified date; otherwise, you'll incur a lot of extra charges.

The Amazon Rewards Visa Card

The Amazon Rewards Visa Card was launched in 2017. It is also offered in two iterations—one for Prime and one for non-Prime members. New cardholders can get an Amazon gift card upon approval. Both cards have an APR between 18.49% to 26.49% depending on the cardholder's credit score.

The card is available to any registered Amazon customer. There is no annual fee, and the card doesn't charge foreign transaction fees. This card is offered by Chase Bank. It rewards cardholders through cashback on multiple levels.

Amazon Rewards Visa cardholders can earn 3% cash back on purchases from Amazon and Whole Foods. They also earn 2% cash back on purchases at restaurants, gas stations, and participating drug stores. Additionally, Amazon offers a $50 gift card instantly upon approval.

The Amazon Prime Rewards Visa

Cardholders with an Amazon Prime membership are approved for the Amazon Prime Rewards Visa Card. These cardholders earn an additional 5% on Amazon and Whole Foods purchases, 2% cash back on purchases at restaurants and gas stations, and 1% on all other purchases. This card also offers an additional 10% or more cash back on a rotating selection of Amazon products and categories. Amazon also offers a $100 gift card instantly upon approval.

Using the cashback can help offset the cost of the yearly Prime membership fee of $139. Prime members spending about $200 a month or more at Amazon will recover the annual fee.

The Amazon Secured Card

In June 2019, Amazon launched a secured card to help customers with poor credit. The card is known as the Amazon Prime Store Card Credit Builder. Cardholders must make a required deposit ranging from $100 to $1,000. The deposited amount is also the credit limit. Amazon offers secured cardholders the same benefits as the Amazon Store Card, which includes options for equal monthly payments and special financing payment options. The Secured Card offers a lower APR of 10%.

Other Amazon Financing Options

With a strong position in alternative financial service offerings, Amazon also advertises some other notable payments types:

  • Amazon Business Card: The Amazon Business American Express Card was launched in October 2018. It offers special perks to business shoppers, including discounts for its Amazon Web Services.
  • Corporate Credit Line: A corporate account that allows multiple users to make purchases.
  • Shop with Points: Allows customers to use points accumulated from points cards against their Amazon purchases.
  • Reload Your Balance: Load funds to an Amazon gift card to keep a balance for purchases.

Does Amazon Do Buy Now Pay Later?

Amazon itself does not accept or allow buy-now-pay-later, but it offers the service to businesses for their customers through valU, a fintech financing company.

Does Amazon Offer 12-Month Financing?

Amazon offers 12-month financing on its store card only. It doesn't provide other financing services for purchases.

Does Amazon Accept Afterpay Financing?

Amazon doesn't accept Afterpay for purchases. However, you can use Afterpay to open a one-time use credit card via the app, and it will fill in the card information for you.

The Bottom Line

Amazon has an enormous global retail presence. To compensate for the diversity of its customer base and how they can pay, it has created several solutions. Customers can get credit cards just for use on Amazon, and small businesses can sell on its ecommerce platform and accept payments using multiple methods.

Amazon's financing is generally available only through its credit cards, except in certain situations where it might extend credit to a business it believes is stable enough to invest in.

Article Sources
Investopedia requires writers to use primary sources to support their work. These include white papers, government data, original reporting, and interviews with industry experts. We also reference original research from other reputable publishers where appropriate. You can learn more about the standards we follow in producing accurate, unbiased content in our editorial policy.
  1. Amazon. "Convenient Financing Options For Your Business."

  2. Amazon. "Become an Store Cardholder."

  3. Amazon. "Amazon Prime Rewards Visa Signature Card."

  4. Amazon. "Get a $50 Amazon Gift Card."

  5. Amazon. "Get an Amazon Gift Card Instantly Upon Approval."

  6. Amazon. "Amazon Credit Builder Review."

  7. Amazon. "Amazon Business American Express Card."

  8. Amazon. "Amazon Business Line of Credit."

  9. Amazon. "Shop with Points."

  10. Amazon. "Reload Your Balance."

  11. Amazon Payment Services. "Grow Your Business With Buy Now, Pay Later."

Take the Next Step to Invest
The offers that appear in this table are from partnerships from which Investopedia receives compensation. This compensation may impact how and where listings appear. Investopedia does not include all offers available in the marketplace.