Amazon Business Prime American Express Card Review 2024
Is It the Best Credit Card for Your Startup?
Last Updated: By TRUiC Team
Looking for the best business credit card for your startup? If you own a business and you’re also one of the 150 million or so Americans with an Amazon Prime account, you’re in luck. Launched in 2018, the Amazon Business Prime American Express Card is a business credit card with an attractive rewards program. What’s more, it provides greater visibility into transactions and has no annual fee.
Users can enjoy an enhanced checkout experience and higher cash back payouts on Amazon Business — the Amazon marketplace — as well as on other Amazon businesses, making it a great facility to improve working capital and cash flow.
This guide takes a look at the pros and cons of the Amazon Business American Express Card, its fees, and its many features. Let’s get started!
Recommended: Apply now for Amazon Business Prime American Express Card.
Amazon Business Prime American Express Card Eligibility Requirements
The Amazon Business Prime American Express Card is specially designed for business owners, so one condition is that the card is used only for business or commercial transactions. Several cards may be issued on one account, and one user can be designated as the Account Manager with authority to handle administrative tasks relating to the card.
The Account Manager will be able to view the balance and make payments, review card activity, view and download statements, dispute charges, and check spending ability. This Account Manager must:
- Be at least 18 years old
- Have US Mailing Address
- Have a Social Security number
- Be an Amazon Prime or Business Prime member
Currently, the card is only available to US residents. Eligibility and interest rate to be charged on balances will depend on creditworthiness. (A FICO score of 670 or above is considered good.)
Pros and Cons of Amazon Business Prime American Express Card
Pros of Amazon Business Prime American Express Card
- No annual fee
- Ample rewards program
- Good credit terms
- Free gift card
- No foreign transaction fees
Cons of Amazon Business Prime American Express Card
- Rewards mostly available for transactions with Amazon businesses
- Requires good or excellent credit
- Requires an Amazon Prime or Amazon Business Prime account
Should I Apply for Amazon Business Prime American Express Card?
The Amazon Business Prime American Express Card is a great choice for frequent Amazon shoppers that want to earn rewards as well as ecommerce startups.
Amazon Business Prime American Express Card Fees and Features
The Amazon Business Prime American Express Card comes with many bells and whistles. It offers easy credit terms, as well as a rewards feature that can really save business owners a lot of money. To make the application decision easier, there is the promise of a $125 Amazon Gift Card upon approval.
When using your Amazon Business Prime American Express Card for eligible purchases at a designated Amazon business, you can either (1) get cash back or points or (2) apply payment terms. If you choose payment terms, you will not be able to accrue cash back rewards.
Rewards and Benefits
- 5% cash back on purchases from Amazon businesses
- High limit of $120,000 on 5% cash back program
- No need to pay for purchases for 90 days
- $125 Amazon Gift Card upon approval
Interest Rates
- Purchase APR: 17.24%–25.24%, based on creditworthiness when opening an account.
- Cash Advance APR: 27.99%
- Penalty APR: 29.99% if you:
- Make a payment that gets returned;
- Make two late payments in 12 months; or
- Do not make the minimum payment due by the closing date of the billing period in which it is due.
Fees
- Cash Advance Fees: Either $5 or 3% of the amount of each cash advance, whichever is greater.
- Late Payment Fees: Up to $39
- Returned Payment Fees: $39
- No annual fees
- No foreign transaction fees
The Amazon Business Prime American Express card has some great features designed especially for small business owners. Purchases today can lead to discounts tomorrow through a rewards scheme with options to pay with points or get cash back. Alternatively, purchases can be made on credit, with no interest charged for the first 90 days.
How Does the Amazon Business Prime American Express Card Compare?
The Amazon Business Prime American Express Credit Card is one that many small businesses will find appealing, but it may not offer optimum benefits for your type of business. There are other cards “in the deck.” Let’s see how the Amazon American Express Card compares to the Capital One Spark 1% Classic Credit Card, another popular business credit card.
With the Capital One Spark 1% Classic, business owners with fair credit (i.e., FICO score 580-669) can restore their creditworthiness while earning cash back rewards. For most purchases, the card will pay $1.00 for every $100 spent. That goes up to $5 cash back for every $100 spent on hotels and rental cars booked through Capital One Travel.
Fees: Both cards have zero charges for annual membership and foreign transactions. Rates differ, however. While the Amazon AmEx Card charges between 17.24% and 25.24% on outstanding balances, the Capital One Card levies a whopping 28.49% variable APR.
Transaction fees will be higher on the Amazon AmEx Card. Merchant fees, also known as interchange fees, for AmEx fall between 1.43% and 3.30%, with an added $0.10 per transaction. The Capital One Spark 1% Classic is a Mastercard, so its fees will range from 1.15% to 2.50%, with an additional $0.05 to $0.10 per transaction.
Cash Back: The cash back features on the Amazon Business Prime American Express Credit Card (1%–5%) are decidedly superior to those of the Capital One Spark 1% Classic (1%–5%), as the Spark 1% Classic’s 5% cash back tier only applies to certain travel-related purchases.
Bonuses: While the Amazon Business Prime American Express Credit Card offers a $125 Amazon Gift Card upon approval, the Capital One Spark 1% Classic Credit Card offers no such incentive.
Here’s a Quick Breakdown
Amazon Business Prime American Express
Pricing
$0 Annual Fee
Unique Feature: No interest charged for the first 90 days after purchase.
Best For: Business owners who spend a lot on products and services from Amazon businesses or businesses on the Amazon Marketplace.
The Capital One Spark 1% Classic Credit Card
Pricing
$0 Annual Fee
Unique feature: No category restrictions on cash backs.
Best For: Business owners with low credit.
Final Thoughts on Amazon Business Prime American Express Card
The Amazon Business Prime American Express Card is ideal for small businesses, particularly those that spend a lot on the Amazon Marketplace or make purchases from Amazon businesses, such as Amazon Web Services and Amazon Business.
The card offers some of the highest cash back (3%–5%) available anywhere and generous points that you can spend like money. Its accommodating credit terms—90 days with no interest before payment is due—means you may be able to sell stuff before you even pay for it.
The Amazon Business Prime American Express Card will go a long way toward improving your cash flow and boosting working capital.
Frequently Asked Questions
Can I use the Amazon Business Prime American Express Card to buy gifts for my relatives?
No. The Amazon Business Prime American Express Card was designed for businesses, and so it should be used for products and services for the business. By signing up for the card, you make a representation that the card will only be used for commercial or business purposes.
Do I need to be a business owner to be eligible for the Amazon Business Prime American Express Card?
You need to be a “beneficial owner” of a business to be eligible for the Amazon Business Prime American Express Card. A beneficial owner is someone who has at least a 25% stake in the business.
What credit score do you need for an American Express business card?
You will need to be fairly creditworthy to be approved for the Amazon American Express Card. A good credit score is one that is higher than a FICO score of 670.
What is the Customer Due Diligence Rule (CDD Rule)?
The CDD Rule was instituted in May 2016 by the US Treasury Department's Financial Crimes Enforcement Network (FinCEN) as a way of disrupting money laundering. The Rule requires financial institutions to identify and verify the identity of beneficial owners of small businesses.
What information is required for a ‘Beneficial Owner’?
Applications for the Amazon Business Prime American Express Card must provide the name, date of birth, home street address, and social security number of all beneficial owners of the business.
The application must also identify an Authorizing Officer. An Authorizing Officer is a single individual with significant responsibility to control, manage or direct the business at the time a new account is opened.
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