Amazon unveils new rewards credit card
Online giant Amazon has rolled out a rewards credit card that allows cardholders to earn points that can be redeemed for Amazon gift cards.
The Amazon Platinum card, which comes with a £10 Amazon gift card, offers reward points on all spending. As our analysis below shows, this is one of the best non-American Express (Amex) cards for 'cashback' as long as you spend at Amazon. In fact, if you're a low spender, it can even beat Amex after the first year.
The launch comes at a time when credit card companies have been cutting the perks offered on rewards cards, which has affected those provided by Capital One, RBS, M&S Bank, Amex, Santander and Tesco Bank.
For more options on cards that'll reward you for all spending, take a look at our Credit Card Rewards guide.
What does the new Amazon credit card offer?
As an accepted new cardholder, you'll automatically get a £10 Amazon gift card loaded into your Amazon account, once you've activated the card.
You'll then earn reward points on all spending, at a rate of 0.75 points per £1 spent at Amazon, and 0.5 points per £1 spent elsewhere.
Unlike certain other rewards cards, you'll earn points on every penny spent – points will be rounded to two decimal places before being added to your rewards account daily.
Once you've collected 1,000 Amazon reward points they'll be converted into a £10 Amazon gift card, which will be added to the Amazon account linked to your card within two working days of your statement being issued.
How does it compare with other cashback and rewards cards?
We've crunched the numbers to see what rewards you could earn with the Amazon Platinum credit card on different levels of spending, compared with other top rewards cards on the market:
Top cashback and rewards credit cards
| Card issuer | Rewards | Amount earned on £5k annual spend | Amount earned on £10k annual spend | Amount earned on £20k annual spend | Rep APR (if not repaid) | |
|---|---|---|---|---|---|---|
| Amazon Platinum (apply) | Mastercard | 0.75% back on Amazon spends, 0.5% back on all other spends – rewards are Amazon gift cards | £28 (1) | £56 (1) | £112 (1) | 21.9% |
| Amex Platinum Everyday (eligibility calc / apply*) | American Express | 5% cashback on up to £2k spend in first 3mths, then tiered cashback up to 1% | £81 (yr1) / £25 after (2) | £165 (yr1) / £75 after (2) | £265 (yr1) / £175 after (2) | 22.9% |
| Amex Platinum (eligibility calc / apply*) (3) | American Express | 5% cashback on up to £2k spend in first 3mths, then tiered cashback up to 1.25% | £75 (yr1) / £25 after (2) | £175 (yr1) / £75 after (2) | £300 (yr1) / £200 after (2) | 22.9% (28.2% incl fee) |
| Aqua Reward (eligibility calc / apply*) | Mastercard | 0.5% cashback on all spending (max £100/yr) | £25 | £50 | £100 | 39.9% |
| Asda Money (apply*) | Mastercard | 1% back on Asda spends, 0.5% back on all other spends – rewards are Asda vouchers | £31 (4) | £62 (4) | £125 (4) | 19.9% |
| (1) Not including £10 Amazon voucher for taking out the card. Assumes 25% of spending on Amazon & 75% elsewhere. (2) Assumes spending equally split over 12 months. (3) Card has annual £25 fee, which we've deducted from cashback earned. (4) Assumes 25% of spending at Asda and 75% elsewhere. | ||||||
As an added boon, if you apply by Tuesday 31 January, the Amex cards are offering boosted cashback on Amazon purchases in the first three months, making them an even better deal. (Though it's worth noting that Amex isn't as widely accepted as Mastercard, so you may not be able to use your card everywhere.)
In year two onwards, the Amazon offering overtakes Amex if you annually spend less than about £5,000 – though if you do most of your shopping on Amazon then it could be even better.
Compared with non-Amex cards, the Amazon Platinum is a decent option, especially if you're a heavy Amazon shopper, so could be worth considering.
The rewards credit card golden rules
Full help and options can be found in our Credit Card Rewards guide, but in brief:
Always repay IN FULL, preferably by direct debit, to avoid interest or charges.
Don't withdraw cash – you don't get cashback, you pay interest and it can hurt credit scores.
Don't go over your credit limit. You can be charged.
Protect your credit score by using our quick eligibility calc to see your chances of getting a card. Or join our Credit Club to also get a free Credit & Affordability Score.
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8 October 2024
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