Having the right credit card rewards your business for everyday expenses with cashback incentives, bonuses, and more. If you want to earn more cashback on your Amazon purchases or gain flexibility in how you repay your expenses, then the Amazon Business Prime American Express card might be the right choice for you.
Amazon Business Prime American Express card at a glance
The Amazon Business Prime American Express Card is one of the most popular business credit cards on the market. It comes with excellent perks such as money back on your first purchases each year and money back on such things as restaurants, gas stations and wireless telephone services.
With the Amazon business card, you also get extensive manager tools. First, you can assign an account manager who makes the payments, reviews transactions, and adds and removes employee cards. The account manager can oversee everyone's spending, tag the purchases in QuickBooks, and set account alerts for certain spending activities.
It's important to note that you must have an Amazon Business Prime membership to use this card. Not only that, but you can lose your accrued rewards if you cancel your Prime account or make a late payment on your credit card.
Our guide on the card touches on all the pros and cons for you to consider. It gives you an overall picture of whether the benefits of the credit card fit within your company's needs.
What are the pros to having an Amazon Business Prime American Express card?
Generous opening account bonus
When your business applies and receives approval for the card, you earn a $100 Amazon gift card. Unlike other credit cards, where you must open and spend a specific amount to earn a bonus, this card gives you one with no hoops to jump through.
While the bonus is lower than what other lenders offer (you receive a $500 bonus with the Capital One Spark card when you charge $4500 within the first 90 days), you are also not under any obligation to make any purchases within a narrow window either. It makes the reward more universal for businesses.
5% cashback rewards at select retailers
Cashback incentives are another benefit of the Amazon Business Prime American Express card. You receive 5% back on purchases made through AWS, Amazon.com, Whole Foods, and Amazon Business up to the first $120 000 charged in each calendar year. Once you reach the threshold, you earn 1% back on all other expenses made with your credit card.
American Express also incentivizes other purchases made by companies. You receive 2% cashback on all expenses related to restaurants, cell phone suppliers, and gas stations. For all other purchases, you receive 1% back. There are no spending caps on the 2% or 1% cashback incentives.
All of the rewards accumulated translate to Amazon points. These points do not have an expiration date, so you can harvest them as long as you would like. Use them for purchases made at Amazon, or you can apply your rewards as statement credit.
On this end, the credit card is a wise choice for companies that make many purchases through Amazon or do much in fuel, dining, or cellular expenses.
Flexible repayment terms
American Express offers flexibility in how you finance your expenses. You can either take advantage of the 5% cashback incentive or a 90-day interest-free repayment window. If you plan to make larger purchases, this option gives you more wiggle room in your budget to finance them without any added expense. While you will not earn the cashback rewards, you also do not have to worry about paying interest either, which can range from 14.24% - 22.24%.
Easy management tools
American Express makes it simple to manage all your expenses in one place. With the Amazon Business Enhanced Data Views, it itemizes every purchase made on your online statement. You can also integrate your card data into QuickBooks. Once set up, QuickBooks categorizes your spending for you, so you can easily keep track of where your company's money goes.
Moreover, there are account management tools to make your life easier. The Account Manager is like your personal assistant who can make payments, request more cards for employees, and review transactions. It is a time-saver for those juggling multiple hats within their company.
Another tool is Vendor Pay with Bill.com. With it, you can set up automatic payments to vendors through the platform. The Basic plan is free to use. It allows you to earn rewards on purchases you make anyway (provided you set up the Amazon Business Prime American Express card as your default payment method). It also saves you time relative to making individual payments monthly.
What are the cons to having an Amazon Business Prime American Express card?
There is an annual fee in the form of membership.
The credit card does not charge an annual fee. However, you must have an Amazon Prime membership to be eligible for the credit card. Amazon offers Prime membership tiers for businesses starting from $69 annually. Alternatively, use your personal membership to sign up for the card at an annual cost of $119. You can always use the Amazon $125 gift card received for opening the account to offset your first year of fees. Moving past the first year, you will have an added expense with the card.
It does not offer a low, long-term introductory rate.
Many business credit cards entice companies with an introductory rate. The Chase Ink Business Cash card offers borrowers a 0% APR rate for the first 12 months of purchases. It is a generous repayment window, allowing companies more time to finance their expenses without interest fees. Sure, American Express does offer a 90-day interest-free option, but it is much shorter in scope, and you forfeit your cashback rewards to use it. With other credit cards, you receive a low introductory incentive and a cashback bonus. So, if finances are tight and you need more time to repay expenses in full, this card might not be the smartest option.
Limited cash back categories
The card is best for businesses that buy from Amazon regularly. If your company does not, you will not maximize the card's rewards. It does offer decent perks if you charge cell phone bills or dining, but it does not have higher incentives for office supplies, hotels, flights, consulting services, and more. Therefore, it is limited in scope and will only appeal to companies that use Amazon as a regular vendor.
How do I redeem my rewards?
You can redeem your cashback rewards in two ways. You can use your points on purchases made through Amazon. Alternatively, you can apply them as a statement credit. At this time, you cannot cash out your rewards or transfer them to your company's bank account.
Does American Express offer flexible repayment options?
If your company makes purchases at Amazon.com, Whole Foods, Amazon Business, or AWS, you have the option to earn the 5% back incentive. Or, you can choose the 90-day repayment window where the card issuer will not charge you interest.
However, you also miss out on the cashback rewards. It is a wise option for companies requiring a little more time to repay the balance in full.
Where is American Express accepted?
99% of places in the United States accept American Express cards, according to Nilson. While the card does not have foreign transaction fees, you might find it harder to use your credit card overseas, as not as many places accept it.
What interest rates does American Express charge?
It depends on your company's financial situation. American Express will examine your credit, income, and more to decide. The current interest rate range is 14.24% - 22.24%.
Are there alternatives worth considering?
The Amazon Business Prime American Express card offers many enticing perks. However, other credit cards deliver unique benefits that make them a wise option to consider as well:
Amazon Business American Express card
You do not have to have an Amazon Prime membership to be eligible for this card. Your company can also earn 3% cashback on purchases made at AWS, Whole Foods, and other Amazon properties. Or, you can take 60 days to repay your charges interest-free. Amazon also throws in a $100 gift card just for opening the account. It is a smart way to take advantage of all the business-friendly resources offered by American Express, without the annual fees or Amazon Prime membership.
Chase Ink Business Cash card
This card offers a generous 0% APR for the first 12 months on all purchases and balance transfers. Your business can also earn 5% back on the first $25 000 spent on office supplies, home internet, cable, and phone expenses. Chase also offers a $750 bonus when your business charges $7500 within the first three months of opening the account.
Capital One Spark 2% Cash
This business credit card touts simplicity in cashback bonuses. Instead of going through categories, where you might earn more incentives for some purchases over others, Capital One gives you 2% back on all expenses made with the card. There are no minimums, spending caps, and your rewards never expire. Your business can maximize rewards by spending $4500 within the first three months of opening the card, entitling you to a $500 bonus.