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Last September, Amazon Business and American Express launched two new products aimed at the small business market.
For a limited period*, one of the Cards, the Amazon Business American Express Card is waiving its annual fee. This saves you £50 and allows you to tap into the ability to make the most of your future spending.
In addition to the first year free, you receive a £25 Amazon Gift Card upon approval.
On top of that, you have the freedom to choose between:
- 1.5% back in Amazon Rewards or
- deferred payment for 60 days on UK purchases at Amazon Business, Amazon.co.uk and Whole Foods Market
The Card is well worth considering if your business or SME makes regular Amazon purchases. It’s worth noting that there isn’t a minimum spend required to trigger the £25 Amazon Gift Card.
As we have said many times on HfP, miles and points earned from credit card spending are NOT free. You are always giving up the chance to earn cashback or pseudo-cashback from competing cards. And unlike travel rewards, you don’t have to deal with flight or hotel availability restrictions, so you may be better off with Amazon Rewards.
What is the Amazon Business American Express Card?
The Amazon Business American Express Card is the ‘entry level’ Card of the two on offer.
Despite the Card name, you do NOT need an Amazon Business account to apply.
That said, as Amazon Business is free, it may be helpful for your company since it adds business functionalities like VAT invoices and reporting.
What is the annual fee and interest rate?
For a limited time*, the first year fee is waived for the Amazon Business American Express Card.
The Purchase Rate is 21.9% per annum variable. The Representative APR is 32.6% APR variable.
It’s definitely worth considering taking advantage of the first year free.
What is the sign-up bonus and how can I use it?
New cardholders receive a £25 Amazon Gift Card once approved.
You receive the gift card irrespective of what other American Express Cards you hold and there is no minimum spend required to trigger the gift card.
You can choose between two benefits on your Amazon spending:
- 1.5% in Amazon Rewards on UK purchases at Amazon.co.uk, Amazon Business and Whole Foods Market, or
- 60 additional days to pay on each purchase at Amazon.co.uk, Amazon Business UK and Whole Foods Market UK
On all of your other spending, you will receive:
- 0.5% back in Amazon Rewards
For most people, taking Amazon Rewards will be the better choice on your Amazon spending. Taking the extra 60 days to pay is effectively costing you 1.5%, since you lose out on earning Amazon Rewards, although the cash flow benefits may be important to you.
You can choose, on a transaction by transaction basis, whether you want to earn the 1.5% or take the extra 60 days to pay.
Note that the 1.5% in Amazon Rewards credit is capped at £120,000 of Amazon purchases per calendar (not card) year. Beyond this, you will earn 1% in Amazon Rewards on your Amazon purchases.
How do I spend Amazon Rewards?
As you’d expect, you can use your Amazon Rewards to offset your purchases on the Amazon.co.uk website.
Interestingly, you can ALSO use them to pay off your American Express statement. This means that, even if your business does not spend much at Amazon, the Card may still work for you. You can treat it as a straight 0.5% rewards Card, using the credit to pay off your Credit Card bill.
There are currenly two good reasons to give the Amazon Business American Express card a try:
- no annual fee for your first year and
- a £25 Amazon Gift Card upon approval of the card (no minimum spend required)
It is especially valuable for businesses which are already spending a lot of money with Amazon in the UK, or who are going to spend a lot with them in the future, due to the very generous 1.5% rebate on your Amazon spend.
* Limited time offer. Valid from 1 April 2021 for a minimum period of 2 months and a maximum period of 6 months. Offer may be withdrawn or modified at any time after 1 June 2021.
Terms and conditions apply. Subject to approval, 18+. American Express Services Europe Limited is authorised and regulated by the Financial Conduct Authority. Amazon acts as a credit broker, not a lender. American Express and all related logos are trademarks of American Express Company and its affiliates.