How Amazon financing works

Amazon has a unique position in providing credit. It has 150 million Prime subscribers, millions of users who sell its platform, and more than 2.5 million sellers. Like other retailers, this creates huge opportunities for their customers to provide credit products and financing options. In addition, its seller platform has also created opportunities to provide commercial credit.

Amazon’s entry into the financial services field has always been to create consumer opportunities within the Amazon ecosystem. The company has always been active in a number of financial technology fields, especially online payments. Then in 2011, it launched small business loans, and from there it launched different credit card products for small businesses and consumer users.

Learn more about how Amazon’s financing solutions work and the services they provide.

Key points

  • Amazon provides customers with a variety of revolving credit options.
  • Amazon’s most popular credit cards are Amazon Rewards Visa, Amazon Prime Rewards Visa, and Amazon Store Card.
  • Amazon also offers credit options for small businesses, including Amazon Business Prime American Express.

What is Amazon financing?

Amazon financing includes a series of credit products and services provided by to help consumers and small business customers pay for purchases over time. Terms and conditions vary by creditworthiness, and the loan structure involves installment payments and open credit arrangements.

Small business loan

Amazon introduced small business loans for its sellers in 2011. There is no high publicity, and according to Amazon’s sales standards, sellers are a little cautious when offering loans. Since its launch, Amazon’s small business loans have issued more than $5 billion to small businesses on its platform. Its products continue to be based on the invitation system.

Amazon credit card options

Amazon users can obtain financing through three credit card options-Amazon Rewards Visa Card, Amazon Prime Rewards Signature Visa, Amazon Store Card and Amazon Security Card. If approved, the applicant will receive a credit line based on his credit score and other screening factors.

150 million+

As of the end of 2019, the number of Amazon Prime members in the United States.

Amazon Store Card

The Amazon Store Card was first introduced in 2015. It has two iterations. One card is for Prime members and the other is for non-Prime members.

There is no annual fee for the Amazon Store Card. It is provided in cooperation with Synchrony Bank. Cardholders with Prime membership can use the card to get 5% cash back when shopping on Amazon.

The Amazon Store Card can only be used on Amazon.

All approved cardholders will receive an Amazon gift card. Provide promotional financing and special financing options. After customers choose Amazon store card as their payment method, they can choose equal monthly payment or special financing.

Equivalent monthly payment:

  • Six months of equal payment financing for the purchase of $150 or more
  • 12 months of equal payment financing for the purchase of $600 or more
  • 24-month equal payment financing for specific purchases

With these options, cardholders can make equal payments for purchases made through Amazon at a 0% annual interest rate (APR) during the financing period. The payment required under this option is the purchase price including tax and freight, which is evenly distributed according to the financing period. Therefore, if you buy something for $450, you have six months to pay it off. Your payment will be 75 USD or 450 USD per month ÷ 6.

Customers whose balance exceeds the financing period will incur late fees until the balance is paid in full.Since the date of purchase, interest is also assessed on the full promotion balance

Another option is special financing, which also has three levels:

  • Six-month special financing for purchases of US$150 or more
  • 12-month special financing for purchase of $600 or more
  • 24 months of special financing can be obtained for certain purchases of US$800 or more

If the entire purchase is paid off within the specified time, the customer does not need to pay interest. A minimum monthly requirement is required. Any remaining balance will incur interest and late fees. The APR is 25.99%. Even if you have paid, interest will be calculated on the entire promotion balance since the date of purchase. This means that it is in your best interest to pay off the card before the specified time period, otherwise you will incur a lot of additional costs.

Amazon Rewards Visa Card

The Amazon Rewards Visa card was launched in 2017. It also offers two iterations, one for Prime and non-Prime members. New cardholders can receive Amazon gift cards upon approval. According to the cardholder’s credit score, the APR of these two cards ranges from 14.24% to 22.24%.

The card can be used by any registered Amazon customer. There is no annual fee, and the card does not charge foreign transaction fees. This card is provided by Chase Bank. The Rewards Visa card rewards cardholders through multiple levels of cash back.

Amazon rewards Visa cardholders with 3% cash back for purchases through Amazon and Whole Foods. These cardholders can get 2% cash back for shopping in restaurants, gas stations and participating pharmacies. Rewards Visa cardholders can also get 1% cash back on any other purchases.

Cardholders with Amazon Prime membership will be approved for the Amazon Prime Rewards Visa card. These cardholders can receive an additional 5% reward when shopping at Amazon and Whole Foods.

Using cash back can help offset the annual $119 Prime membership fee. Prime members spend about $200 or more per month on Amazon, which can basically recover the annual fee.

Amazon Security Card

In June 2019, Amazon introduced a security card to help customers with poor credit. This card is called Amazon Prime Store Card Credit Builder. Cardholders must make deposits ranging from US$100 to US$1,000. The deposited amount is also the credit limit.Amazon offers secure cardholders the same benefits as Amazon Store Cards, including equal monthly payments and special financing payment options.

Other Amazon financing options

With its strong position in alternative financial services products, Amazon also promotes some other notable payment types:

  • Amazon Business Card: The Amazon Business American Express Card was launched in October 2018. It provides special offers for commercial shoppers, including discounts on Amazon Web Services.
  • Corporate Credit Line: A corporate account that allows multiple users to make purchases.
  • Shopping with points: Allow customers to use the points accumulated from the points card to purchase Amazon products.
  • Reload your balance: Deposit funds into Amazon gift cards to maintain your purchase balance.

In addition, Amazon also talked about a checking account option that will be based on its prepaid gift card product. In November 2019, Google announced plans for its checking account option, but Amazon has been reluctant to take this move.


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