Amazon.com, Inc. (NASDAQ:AMZN) will soon launch its own branded credit card exclusively for Prime members, which will offer 5% cash back on all Prime purchases.
The move is aimed at spurring more buying among the company’s most loyal customers.
The car will feature a Visa logo and will be issued by J.P. Morgan Chase. It will also have no annual fee not any foreign transaction fees. There’s no word yet on what sort of interest rate it will carry, but considering Amazon’s legendary low-price business model, it’s probably safe to assume the rate will be very competitive.
Along with the 5% cash back on Amazon purchases, the card also rewards shoppers elsewhere. Users will earn 2% back at restaurants, gas stations and drugstores, and 1% back on any other purchase outside of those outlets.
The company commented via press release:
“We are adding even more value to Prime by offering rewards on Amazon and everywhere else you shop,” said Max Bardon, Vice President at Amazon.
“Hundreds of millions of people shop at Amazon.com and there is no better way to earn rewards for their purchases than Chase’s new Amazon Prime Rewards Visa Signature Card,” said Kevin Watters, CEO of Chase Card Services. “We are thrilled to be working with Amazon to offer even more value to our cardmembers.”
Other features of the new credit card include no cap on earning rewards (which never expire and can be redeemed on Amazon.com), zero fraud liability, and 24/7 concierge service, which is offered through Visa Signature.
Amazon.com, Inc. shares rose $0.6 (+0.08%) in premarket trading Wednesday. Year-to-date, AMZN has gained 6.14%, versus a 1.31% rise in the benchmark S&P 500 index during the same period.