Amazon Business Credit Card: Perfect For Amazon Users & Small Businesses
Credit Cards

Amazon Business Credit Card: Perfect For Amazon Users & Small Businesses

Posted: May 13,2020
by Jestan Mendame
Last updated: August 29,2020

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The Amazon Business credit card provides a lot of benefits for Amazon loyalists and small businesses – particularly FBA sellers (Fulfillment by Amazon). Its main features are big cashback points and flexible payment terms.

From a selling perspective: The card gives businesses ample time to collect payment from customer orders, before being charged on credit card purchases made to procure those orders.

From a buying perspective: Businesses who make Amazon-related purchases can get cashback which they can use to redeem rewards.

Amazon Business Credit Card In A Nutshell

The card benefits all kinds of businesses, however, it’s important to know that the card’s benefits vary if you’re an Amazon Prime member or a non-Amazon Prime member.

Amazon Prime members

  • Zero annual fees and foreign transaction fees
  • $125 Amazon.com gift card upon card approval
  • 5% cashback OR a net 90 payment terms for US purchases on Amazon.com, Amazon Business, AWS, and Whole Foods.
  • 2% cashback at U.S. restaurants, gas stations, and phone services
  • 1% cashback on other purchases
  • $100 statement credit after spending $3,000 on the 2% and 1% cashback categories in the first three months.

Non-Amazon Prime members.

  • Zero annual fees and foreign transaction fees
  • $100 Amazon.com gift card upon card approval
  • 3% cashback OR net 60 payment terms for US purchases on Amazon.com, Amazon Business, AWS, and Whole Foods
  • 2% cashback at U.S. restaurants, gas stations, and phone services
  • 1% cashback on other purchases
  • $100 statement credit after spending $3,000 on the 2% and 1% cashback categories in the first three months.

Take note that the cashback percentage doesn’t directly convert to actual cash. You’ll basically earn Amazon points from your cashback where every 100 points are equivalent to $1.

Business owners can have payment flexibility with the Amazon Business credit card.

Amazon Business Credit Card Payment Terms Explained

In your head, you’re probably asking this – “What’s the difference between 0% Intro APR and Amazon’s net 60/90 payment terms?”

Most cards offer 0% intro APR that lasts between 9-24 months. Sure, there’s no interest within these periods but you still need to make monthly payments.

The Amazon Business credit card offers a permanent 0% interest rate within 60 or 90 days on eligible purchases. This means that cardholders DO NOT need to make monthly payments within those payment periods.

Here’s a possible scenario…

You’re an FBA seller who got a purchase order that’s worth $5,000. You spend $3,000 on expenses, and it took you 25 days to procure and ship the order to the customer.

Now, sometimes customers have about 30 days to pay the seller after the shipment is made, and this is where the cashflow issues come in.

If you’re using a regular credit card, you’re obliged to pay $5,000 at the end of the month. However, the Amazon Business credit card will give you 30 or 60 days before paying the $5,000.

It’s not a problem for big businesses who have enough capital to spend before they make a profit, but for small businesses, this payment flexibility is a big deal.

Who Is This Card Good For?

We’ve already made it clear that all businesses, whether digital or physical, can benefit from the card. However, we made a list of possible scenarios on who the card is really good for.

The Card Is Good For:

  • FBA sellers
  • Business owners that frequently spend on Amazon affiliates
  • People who have an Amazon Prime membership
  • New business owners who want payment flexibility

The Card Is Not Good For:

  • People who want longer 0% payment periods
  • People who want flat cashback rates

Thoughts About The Amazon Business Credit Card

The card does have a lucrative cashback rate, but there are others that offer 5% cashback too, such as:

Its main advantage from other cards is it belongs to Amazon, the number 1 online retailer in the U.S. If you’re an FBA seller or are planning to become one, you’ll be hitting two birds with one stone – sales and big cashback rates.

Plus, the 60- or 90-day payment terms and zero annual fees are definitely a big deal for startup businesses that don’t have stable cash flow yet. However, we do recommend getting another card that has a longer 0% Intro APR which you can use for big purchases that cannot be paid within 60 or 90 days.

Responses are not provided or commissioned by the bank advertiser. Responses have not been reviewed, approved or otherwise endorsed by the bank advertiser. It is not the bank advertiser’s responsibility to ensure all posts and/or questions are answered.

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