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The Amazon Business Prime American Express Card offers an excellent return on Amazon purchases, so much so that it should be a top business card to consider if your business makes a lot of Amazon purchases. The card earns a fantastic 5% at Amazon.com, Amazon Web Services (AWS), and at Whole Foods, among other Amazon brands. To top things off, the card charges a $0 annual fee and it'll even earn you an Amazon gift card upon approval.
The card's rewards are provided in the form of points you can use to redeem for Amazon purchases. The main limitation: You do need a Prime membership for this card, so make sure your Prime membership is active before you apply.
If you don't have a Prime membership, you can open the Amazon Business American Express Card instead. But the earning potential of the Amazon Business Prime Amex is so much better that you may want to consider a Prime membership just for the card's boosted earnings.
Is the Amazon Business Prime Amex right for your business? Let's take a look.
Amazon Business Prime Amex Pros
- Excellent rewards rate or extended payment terms Amazon purchases
- $0 annual fee
- No foreign transaction fees
Amazon Business Prime Amex Cons
- Highest earning rate only applies to Amazon purchases
- Mediocre earnings on non-Amazon purchases
- Rewards have no use outside of redeeming for Amazon purchases
Amazon Business Prime Amex Welcome Offer
Eligible Prime Members get a $125 Amazon Gift Card upon approval for the Amazon Business Prime American Express Card. This gift card will automatically be added to the Gift Card Balance in the Amazon account used to apply for the card. And you'll need to log into your Amazon Prime account to apply for this card.
You can apply the Gift Card Balance just like any other Amazon gift card seamlessly at checkout by selecting the balance as the payment option. Unless you change the setting in your Amazon account, your default payment method for your next Amazon purchase will be your gift card balance.
Amazon Business Prime Amex Benefits
The Amazon Business American Express card offers a limited number of benefits compared to many card, but it does have a few key perks that are helpful for a business card with no annual fee. The card doesn't charge foreign transaction fees, so you can use it abroad without incurring extra charges. Additionally, Amazon Business Prime Amex benefits include extended warranty protection and purchase protection on qualifying purchases.
Luggage Insurance
If you use your Amazon Business Prime Amex to pay for travel on a common carrier (i.e. airline, train, bus, etc.), your luggage will be covered up to a maximum of $1,250 for carry-on baggage and $500 for checked luggage. This coverage is in excess of what is provided by the carrier.
Auto Rental Loss and Damage Waiver
Car rental damage and theft is covered when you use your Amazon Business Prime Amex to pay for your rental and decline the rental company's collision damage waiver. Coverage applies in many countries, but not all, so note exceptions. It is also subject to a maximum of $50,000. Unfortunately, this is secondary coverage, which means it kicks in after your personal auto insurance. If you are looking for a card with primary car rental insurance, there are plenty of cards that offer it.
Extended Warranty
The Amazon Business Prime Amex provides an additional year on original manufacturer's warranties of five years or less on covered purchases that offer such a warranty. This only applies to purchases within the United States or its territories.
Purchase Protection
The Amazon Business Prime Amex offers purchase protection for purchases for up to 90 days if a covered item is stolen or damaged. Coverage is limited up to $1,000 per covered purchase and subject to a limit of $50,000 per cardmember account every calendar year. Exclusions apply.
Amazon Business Prime Amex Earning Rates
Now the best part. The Amazon Business Prime Amex has an excellent earning rate on purchases at Amazon.com, Amazon Business, Amazon Web Services (AWS), Amazon Go, Amazon Books, and Whole Foods Market locations within the U.S. You can earn 5% in rewards at any of these websites or locations.
This is a great return if you do a good amount of shopping at Amazon. This earning is capped at $120,000 in purchases each calendar year, after which you'll only earn 1%. If your business does a ton of Amazon shopping, however, this is still $6,000 in rewards!
In contrast, the earning rates for purchases outside of Amazon aren't all that hot. The card earns 2% back at restaurants, gas stations and wireless phone services purchased directly from service providers within the U.S. There are business credit cards available where you can get better returns in all of these categories. Finally, the Amazon Business Prime Amex earns 1% back on all other purchases.
Related: The 7 Best No Annual Fee Business Rewards Credit Cards
Foregoing cash back for payment terms
Uniquely, the Amazon Business Prime Amex has the option to let you apply 90-day payment terms instead of earning 5% back. This is called the Rewards option. If you choose the Payment Terms option for a purchase, it will not earn any cash back. However, you'll be provided the longer window for paying it off. Payment will be due no less than 90 days from the date of purchase. So, if your business occasionally faces a cash flow crunch, this could be a worthwhile option to have a your disposal.
However, you aren't always given a choice between which option you want — whether 5% rewards or 90-day payment terms. The Amazon Business Prime Amex does allow you to set a default rewards option. Occasionally, however, you won't be given given the choice between rewards options (such as at Whole Foods Markets), and your default rewards option will apply.
Redeeming rewards
One of the downsides of the Amazon Business Prime Amex is that you're limited on how you can redeem your rewards. Don't think of the rewards you earn as cash back, as there is no way to cash them out. Instead, you can redeem the rewards you earn for Amazon purchases at checkout or apply them as a statement credit to Amazon purchases.
Comparing the card's rewards to the Amazon Business Amex
If you're not a Prime member and are wondering whether to pay for the membership, here's a quick breakdown of how the earning rates compare between the two Amazon business cards. Neither card charges an annual fee, so they are equal on that count.
The Amazon Business Amex earns 3%, but doesn't require a Prime membership. The Amazon Business Prime Amex earns 5% but requires that you purchase an Amazon Prime membership. The annual option costs $139 plus tax. So, factoring in the 2% more in rewards that you earn, you'll need to spend around $625 per month to break even. If you spend substantially more than this, the Amazon Business Prime Amex is the clear winner.
Application Restrictions
There is no application restriction language besides the Prime membership requirement. This is also automatically factored into the application. You apply for the card through Amazon, and if you're logged in and a Prime member, your application will show the Amazon Business Prime Amex. If you're not a Prime member, your application will show the Amazon Business Amex. If your Prime subscription changes at any time (i.e. begins or terminates), your card will automatically be upgraded or downgraded appropriately.
Cards That Compete With the Amazon Business Prime Amex
While the Amazon Business Amex is unique in that it offers elevated rewards at Amazon, there are other cards that could easily make more sense, depending on your business spending patterns. Here are a few alternatives to consider:
- If you don't want to pay for an Amazon prime membership, the Amazon Business Amex is the better choice. Remember that the breakeven point is around $625 per month for the Amazon Business Prime Amex to offer the better return. However, Prime may be worth it for the other benefits it provides.
- If you want solid earning on all purchases, not just Amazon, consider the Capital One Spark Cash. It offers 2% rewards on every purchase, with no restrictions or spending cap. It does have an annual fee with a $0 intro for first year; $95 after that. The lucrative sign-up bonus of $750 helps offset this, though.
- If you want a card for primarily office supply purchases, consider the Ink Business Cash® Credit Card. Besides offering a stellar welcome offer of Earn $350 when you spend $3,000 on purchases in the first three months and an additional $400 —$350 once you spend $3,000 on purchases in the first three months, and an additional $400 once you spend $6,000 on purchases in the first six months, the card earns 5% back at office supply stores and on internet, cable and phone services. Like the Amazon Business Prime Amex, you'll also earn 2% back at restaurants and gas stations. However, these rewards rates are capped at $25,000 in spending each calendar year.
Bottom Line
The Amazon Business Prime Amex is an excellent card if you have a good amount of business spending at Amazon. You can earn up to $6,000 in 5% rewards every year. Its fantastic earning rate at Amazon and $0 annual fee make it an easy choice. If you're not a Prime member, the card could easily pay for the membership if you spend at least $625 per month at Amazon.
Even if you're on the fence about Amazon Prime membership, consider applying for the Amazon Business Amex first. If at any time you decide to enroll in Amazon Prime, your Amazon Business Amex will be automatically upgraded as soon as you pay for the membership. You'll be sent a new card at that point.
For rates and fees of the cards mentioned in this post, please visit the following links: Ink Business Cash® Credit Card (Rates & Fees)
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