If you are looking for a credit card that’s specially designed for small business owners, the Amazon Business Prime Card could be a good option.
As its name implies, the card is backed by e-commerce juggernaut Amazon. Entrepreneurs who choose this card can get several advantages by making purchases on Amazon’s website.
But before you jump at Amazon’s offer, it’s important to understand the Amazon Business Prime Card’s features. Are the advantages that the card provides a good fit for you? Will you save any money with this card?
If you regularly buy tools, supplies, and equipment from Amazon Business, getting the Amazon Business Prime Card could be justified because of its generous cash back program. However, the card has its drawbacks as well.
Let’s dig a little deeper to find out more.
What is Amazon Business Prime Card? How does it work?
First and foremost, you should know that the card issuer is American Express. So the card is also known as the “Amazon Business Prime American Express Card.”
Amazon Business Prime Card
AmEx cards are accepted at millions of places across the United States. In fact, according to a recent report, American Express cards have achieved “virtual parity” with Visa and Mastercard in the U.S.
But the benefits that the Amazon Business Prime Card provides go far beyond being widely accepted. One significant advantage is that the card is free. There’s no annual charge. However, it’s important to remember that you need an eligible Amazon Prime membership to get an Amazon Business Prime Card.
Which Prime membership entitles you to a free Amazon Business Prime Card? The list includes:
- Annual or monthly Prime memberships (excluding Prime Video)
- Trial memberships of annual and monthly Prime
- Trial or Paid U.S. Business Prime memberships (excluding Prime Video)
You can see a complete list of eligible Prime memberships on Amazon’s website.
When your application for an Amazon Business Prime Card is approved, it will automatically be added as a payment method to your Amazon account. If you have an Amazon Business account, it will be added there. So the process is quite seamless.
What if you open your Amazon Business account after getting your Amazon Business Prime Card? In this situation too, your card will be added automatically as a payment method in your Amazon Business account.
Now let’s examine the benefits that this card offers.
Features and Benefits
We’ve divided this section into two parts – the first one describes the features that make the Amazon Business Prime Card an attractive choice for entrepreneurs. Then, we’ll talk about the additional benefits that you get with this card.
Amazon Business Prime Card’s top features
Here’s an image that summarizes several positive aspects about the card:
Amazon Business Prime American Express Card – what’s on offer
- Choose between 5% Back rewards or 90-day payment terms on your purchases from:
- Amazon Business
- Amazon Web Services (AWS)
- Whole Foods Market
- You get 2% back rewards on purchases made at restaurants, gas stations, and wireless telephone services.
- Every other purchase gets you 1% back rewards.
- Redeeming your points is easy. You can do this when you are at the checkout on Amazon.com or Amazon Business.
- Upon approval, you’ll get a $125 Amazon.com Gift Card.
- If you spend $3,000 in the 1% and 2% back rewards categories within three months of getting the card, you’ll get $100 as a credit in your card statement.
- Finally, don’t forget that there’s a $0 annual fee. However, this advantage is offset by the fact that you have to pay the Amazon Prime membership fee.
Additional benefits that the Amazon Business Prime Card provides
The card also carries several non-monetary benefits. Although these won’t reduce your expenses, they will help you help to monitor them and run your company more efficiently.
Here’s a quick summary:
- You can issue additional cards to your employees. A maximum of 99 cards is permissible.
- A trusted employee can be designated as the Account Manager for the card. He or she could be authorized to review statements and dispute charges on your behalf.
- You can set up account alerts to control employee card use and keep tabs on expenditure.
- Your account will provide details of item by item purchases. You can also view purchase history and obtain a year-end summary of the items you have bought.
- Cardmembers receive 24/7 phone support from customer care. The staff is trained to handle the specific needs of small business owners.
- There’s even complimentary baggage insurance and a car rental loss and damage insurance plan for cardmembers.
Is Amazon Business Prime Card the Right One for You?
Amazon Business Prime Card is right for you if:
1. You make regular purchases on Amazon.com, Amazon Business, AWS, or Whole Foods Market. The 5% Back rewards can provide you with a significant level of benefits.
Here’s how the rewards program works — the % Back rewards are tracked as Amazon Rewards points. One hundred points are equal to $1. You can redeem rewards on Amazon.com or Amazon Business.
2. You want an extended credit period to pay for your purchases. Card members get 90 days to pay for purchases made on Amazon.com, Amazon Business, AWS, or Whole Foods Market. The extra time that you get to pay can help you to borrow less and save on interest costs.
Remember that you have to choose between 5% Back rewards and the 90-day credit period. You can’t have both.
3. You’re looking for a card with a $0 annual fee.
4. You’re looking for a card that will help you manage your expenses. The Amazon Business Prime Card comes with various business tools. These include additional employee cards, comprehensive purchase reports, and a specially designed American Express Business App.
You may want to consider other options if:
1. You plan to pay the minimum balance or borrow money with your card. The Amazon Business Prime Card isn’t for everyone. Its biggest drawback is that it carries high-interest rates and charges. Consider this:
- The annual percentage rate (APR) on purchases is currently between 15.74% and 23.74%.
- Cash advances carry an even higher APR. The applicable rate is 26.49%.
- If you delay payments, you will have to pay a penalty APR of 29.99%.
So, if you’re planning to pay the minimum balance every month and roll over the remaining amount to the next month, the card could prove to be an expensive option. Similarly, using the card’s cash advance facility will lead to inflated interest costs.
2. You have an average FICO score. You need a high credit score to be eligible for the Amazon Business Prime Card. According to NerdWallet, your score needs to be in the 690-850 range.
3. You don’t have an Amazon Prime membership. Getting a new membership could cost as much $119 per year. If you have to pay this amount, the card isn’t really free.
If you decide that an Amazon Business Prime Card is not for you, there are other options. You could consider a small business loan from Camino Financial. We are a finance company that stands by our motto, “No business left behind.” You could be surprised to learn that:
- We don’t insist on a credit score. In fact, even if you don’t have a credit history at all, you can apply for a loan from Camino Financial. Have a look at our complete list of business loan requirements and benefits to see how borrower-friendly we are.
- Camino Financial small business loans are repaid by making fixed monthly installment payments. Unlike credit card companies, we don’t change interest rates if the prime rate changes.
- Our interest rates on our small business loans range from 12% to 31.25%. It can be far more economical to borrow from Camino Financial than from a credit card company.
- Our loan process is quick and easy. You can request a quote now and know instantly if you prequalify.
The Bottom Line
The Amazon Business Prime Card could be a great choice if you’re already a Prime member, and you shop at Amazon regularly. However, if you don’t meet both these conditions, consider your alternatives carefully. There are many options out there, and you could get a far better deal with some other card.