American Express introduces 2 cobranded Amazon cards for small business owners

Sep 30, 2020

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American Express has launched two new credit card options for small business owners in the U.K. This week, the issuer detailed its latest credit cards on offer, the Amazon Business American Express Card and the Amazon Business Prime American Express Card.

As you might have been able to gather by the names of the cards, they’re targeted at small business owners who make purchases through Amazon. The Business Prime card is the more premium of the two, though they both charge the same annual fee of £50.

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Here’s a breakdown of the two cards:

Amazon Business American Express Card Amazon Business Prime American Express Card
Physical card Plastic Metal, vertically aligned
Welcome bonus £25 Amazon.co.uk gift card upon approval £50 Amazon.co.uk gift card upon approval
Eligibility Small business owners in the U.K. Amazon Business Prime members in the U.K.
Earning structure 1.5% Amazon Rewards on up to £120,000 in Amazon U.K. and Whole Foods purchases (1% thereafter); 0.5% Amazon Rewards on all other purchases

or

60-day extended payment terms on such U.K. purchases.

2% Amazon Rewards on up to £120,000 in Amazon U.K. and Whole Foods purchases (1% thereafter); 0.5% Amazon Rewards on all other purchases

or

90-day extended payment terms on such U.K. purchases.

Annual fee £50 £50, which is waived for the first year. The annual fee is also waived if a cardholder spends £8,000 on the card each year.

Each card has a representative APR of 32.6% variable and an assumed credit limit of £1,200 with a variable purchase rate of 21.9%.

The choice between rewards could help small business owners who want the option to either elect for rewards to redeem on future purchases or to help with cashflow solutions at the moment.

As far as the Amazon Rewards earning structure, cardholders of the Amazon Business Amex can opt to earn 1.5% Amazon Rewards on Amazon U.K. and Whole Foods purchases (up to £120,000 annually; 1% thereafter), while Business Prime cardholders can opt for 2% Amazon Rewards (up to £120,000 annually; 1% thereafter). With both cards, you’ll get 0.5% Amazon Rewards on all other purchases. It’s worth noting that you’ll want to ensure you’re making the purchases on Amazon.co.uk, rather than Amazon.com, as international Amazon purchases only earn 0.5% Amazon Rewards for every £1 spent.

Related: Is your business suitable for a business credit card?

Amazon Rewards can be applied towards purchases at checkout at Amazon.co.uk and Amazon Business. Alternatively, you can apply Amazon Rewards to your statement.

(Image courtesy of American Express)
(Image courtesy of American Express)

Both cards come with the option of adding up to 99 supplementary cardholder accounts, which can be especially useful for small business owners with a team who also make purchases on the company’s behalf. Keep in mind, however, that you, as the account holder are responsible for paying the bills for supplementary cardholder accounts.

Unfortunately, with both of these cards, American Express is keeping its 2.99% fee on foreign transactions. While these cards are meant to be maximised online and at Amazon in the U.K., it’s unfortunate the issuer is keeping the non-sterling transaction fee for those small business owners who also do business abroad.

Amex says that the launch of the cards “comes at a time when 63% of British small businesses say cash flow issues have led them to delay purchasing goods and services they need to run their business”. Of participants in the survey, 23% said they put off “bigger ticket” purchases over the past six months and 38% said they are only buying “essentials” to keep their businesses operating.

Ultimately, are these the best business credit cards on offer in the U.K.? Probably not. However, each small business owner’s needs are different. If you make regular purchases on Amazon and are looking to take advantage of savings on those purchases in the form of Amazon Rewards, one of these cards could be a good option. Alternatively, if you’re looking to free up cash flow at the moment, the deferred payment options could be a good move.

Nevertheless, it’s exciting to see two new products available to consumers in the U.K.

Featured photo by PeopleImages/Getty Images.

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