Amazon launches new credit card offering rewards on your spending – is it worth getting?

Amazon previously offered credit cards via a different lender, NewDay, but these were discontinued for both new and existing customers in 2022.

How the new Amazon Barclaycard works

Here are the key need-to-knows:

• If approved, you'll get a FREE £20 Amazon gift card. This sign-up bonus will be added to your linked Amazon account automatically. Barclays, which runs Barclaycard, told us there's currently no planned end date for this bonus.
  

• You can earn an ongoing 1% back on Amazon spending. This includes its main site, as well as services such as Audible, Kindle and Prime Video.
  

• If you're a Prime member, you'll get 2% back during certain 'shopping events'. This includes Prime Day, Black Friday and Cyber Monday.
  

• When spending elsewhere, you'll get 0.5% back – dropping to 0.25% after the first year. You won't earn rewards on transactions such as balance transfers, money transfers, cash withdrawals or buying currency.
  

• You can only redeem rewards as Amazon gift cards to your linked Amazon account. You must redeem a minimum of £5, and the amount must be a multiple of £5 – so if, for example, you have £12 in rewards, you can redeem £10 to your Amazon account. The remaining £2 will stay in your rewards pot until you have enough for another redemption.
  
  Amazon gift cards last for 10 years once redeemed – though, as with all gift cards, we'd suggest using them sooner rather than later.
  

• If you previously had an Amazon credit card, you may be offered boosted perks. Amazon told us that "most customers" who had an Amazon Classic or Platinum card can currently get a £50 gift card on signing up, plus double the usual spending rewards for six months.
  
  However, it wouldn't tell us the exact eligibility criteria for this boosted offer, so you'll need to visit Amazon's website to see what you can get.
  

• The card also comes with six months' 0% spending. In other words, you won't be charged any interest on purchases for the first six months of having the card. Make sure you pay the card off IN FULL before the 0% period ends, as otherwise you'll be charged 28.9% rep APR (which would likely wipe any gain from the rewards).
  
  And don't get the Amazon Barclaycard just for its 0% offer – if you need to borrow for a needed, planned, affordable purchase, you can get a much longer interest-free period of up to 21 months with a dedicated 0% spending card.

Should you get the Amazon Barclaycard?

It depends on where you do most of your spending, and whether you're happy to have multiple cards for different purposes.

The current standout pick among cashback and rewards cards is the fee-free Chase debit card, which offers a flat 1% cashback (up to £15 a month) on most spending.

If you don't want to juggle multiple cards, Chase beats the Amazon Barclaycard in a few key areas, making it the likely winner for most:

• It pays more on non-Amazon spending – 1% versus up to 0.5%.

• You get rewards as simple cashback rather than Amazon gift cards, meaning you can spend it anywhere (or save it).

• You don't need to pass a full credit check to get it (as it's a debit card).

• It's a top pick for use overseas, as it gives near-perfect exchange rates and doesn't charge any foreign transaction or ATM withdrawal fees. The Amazon Barclaycard charges a 2.99% foreign purchase fee and a 2.99% ATM withdrawal fee.

However, the Amazon Barclaycard also has a few advantages over Chase:

• You get a free £20 Amazon voucher on signing up. Chase doesn't have any welcome bonuses.

• If you're a Prime member, you can earn more during certain Amazon sales – 2% versus 1%.

• As it's a credit card, you get Section 75 protection when you buy something costing over £100 but less than £30,000. This legal protection is stronger than the Chargeback rights you get on debit cards including Chase.

Of course, you don't necessarily have to choose between them – if you regularly spend larger amounts at Amazon, you could shift that spending to its Barclaycard and use Chase elsewhere, maximising your returns on both.

For lots more options, including 5% cashback if you have a big upcoming purchase and 2% cashback for some Santander customers, see our Cashback and rewards cards guide.

How to get the Amazon Barclaycard if it's right for you

Don't see the card as an excuse to overspend – only use it for needed and planned expenditure, borrowing as little as possible. If it's right for you:

• You can apply for the Amazon Barclaycard online. As part of the process, you'll be able to check your eligibility to find out if you are likely to be approved without affecting your credit rating.
  

• You can't currently apply if you've got a Barclaycard (or have had one in the past six months). Barclays says it's planning to open applications to recent and existing Barclaycard customers in the coming months.
  

• You'll need to use an app to activate your card. You can use either the Barclays app (free on iOS and Android) or the Barclaycard app (also free on iOS and Android). You can then manage your account through the app or online.