Like many other retailers, Amazon (AMZN) offers its customers credit and financing options. The company began its finance program in 2015 and ushered in its own rewards credit card soon after. The limited interest-free financing was set up on a three-tier price level and is offered with two different options.

Read more about how Amazon's credit and financing options work.

Key Takeaways

  • Amazon offers customers two credit options: The Amazon Rewards Credit Card and the Amazon Prime Store Card.
  • The Amazon Rewards Credit Card is a Visa card that offers cash back, no annual fee, and a variable interest rate.
  • The Amazon Prime Store Card gives customers access to special financing options.
  • The Equal Pay option allows customers to pay off purchases in equal payments over time with 0% APR, while the Special Financing option lets customers pay off their purchases with no interest.

Financing Through Amazon

Financing is available to Amazon customers through two credit card options—the Amazon Rewards Visa credit card and the Amazon Prime Store Card. Applicants receive a credit limit based on their credit score and other screening factors.

100 million+

The number of Amazon Prime members in the U.S. as of the end of 2018.

Because Amazon customers often purchase fairly expensive items through the website, the store card is a popular addition to Amazon’s products and services. The company benefits by attracting more customers to sign up for Prime membership and by paying lower interchange transaction processing fees than it pays on purchases made with a major credit card.

The Amazon Rewards Visa Card

The Amazon Rewards Visa credit 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.

This card rewards cardholders through cash back on multiple levels. Customers can earn 3% cash back on purchases made through Amazon and at Whole Foods, and 2% cash back on purchases at restaurants, gas stations, and at participating drug stores. They can also earn 1% cash back on any other purchases. Anyone with an Amazon Prime membership can earn an additional 2% on Amazon and Whole Foods purchases—making the reward a total of 5% cash back.

Using the cash back can help offset the cost of the yearly Prime membership fee of $119. Prime members who spend about $200 a month or more at Amazon will essentially recover the annual fee.

Cardholders don't need to meet minimums in order to redeem cash. Rewards can be used toward purchases on Amazon. New cardholders can get a $50 Amazon gift card upon approval.

The APR on this card ranges between 16.49% to 24.49%, depending on the cardholder's credit score.

The Amazon Prime Store Card

The Amazon Prime Store Card store card has no annual fee. This card is offered by Synchrony Bank.

Cardholders who have a Prime Membership qualify, and can use the card to get 5% cash back on any purchase made at Amazon. Like the rewards card, cardholders can recover the cost of the Prime membership by spending at least $200.

The Amazon Prime Store Card can only be used on Amazon.

This card gives cardholders access to special financing. More on this below.

Approved cardholders get a $60 Amazon gift card and get access to special financing.

Financing Options

The Amazon Rewards Visa Card is simply a credit card and provides no special financing options. Promotional financing is available to Amazon Prime Store Card cardholders. This financing is divided into two sections and is subject to credit approval. Customers can choose between the two options after choosing the Amazon Prime Store Card as the payment method.

The first is the equal pay option:

  • Six-month special financing on purchases of $150 or more
  • 12-month special financing on purchases of $600 or more
  • 24-month special financing on select purchases of $600 or more

Under this option, cardholders make equal payments on purchases made through Amazon at 0% APR for the duration of the special financing period. The required payment under this option is the purchase price including tax and shipping and 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 will be $75 per month or $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-month special financing on purchases of $149 or more
  • 12-month special financing on purchases of $599 or more
  • 24-month special financing on select of $799 or more

Customers don't pay interest if the entire purchase is paid off within the specified length of time. Monthly minimums are required. Any balance that remains incurs interest and a late fee. The APR is 28.24% 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 time period, otherwise, you'll incur a lot of interest.