Amazon Business American Express Card Review

The Amazon Business American Express Card is a compelling option for business owners and frequent Amazon shoppers. This card is tailored to provide significant cashback rewards on essential purchases, particularly those made within the Amazon ecosystem and its affiliates. As a seasoned financial expert, I will delve into the various facets of this credit card, providing comprehensive insights and critical evaluations to help you decide if this card aligns with your business needs.

Amazon Business American Express Card Key Takeaways

– Cashback Rewards: Earn 3% cash back on select U.S. purchases at Amazon Business, AWS, Amazon.com, and Whole Foods Market. Earn 2% cash back on U.S. purchases at restaurants, gas stations, and wireless phone services purchased directly from service providers. Earn 1% cash back on all other purchases.
– Sign-Up Bonus: Receive a $100 Amazon Gift Card upon approval.
– Annual Fee: $0, making it an economical choice for businesses.
– APR: Variable APR ranges from 19.49% to 27.49%, with no introductory APR period.
– Additional Benefits: Travel insurance, baggage insurance, global assist hotline, car rental loss and damage insurance, purchase protection, and extended warranty protection.
– Credit Score Requirement: Good to excellent credit (670-799).

Amazon Business American Express Card Pros and Cons

Pros

1. No Annual Fee: This is a significant advantage for small businesses looking to cut costs while maximizing rewards.
2. High Cashback Rates: The tiered cashback system is particularly beneficial for businesses that frequently purchase from Amazon, dine out, and use wireless services.
3. Sign-Up Bonus: The $100 Amazon Gift Card upon approval is a nice perk that can offset initial expenses.
4. Comprehensive Travel Benefits: Baggage insurance, global assist hotline, and car rental insurance make this card valuable for business travel.
5. Purchase Protection and Extended Warranty: These features add an extra layer of security for business purchases.

Cons

1. High APR: The variable APR of 19.49% to 27.49% can be a drawback for businesses that carry a balance.
2. No Introductory APR: The absence of an introductory APR period is a disadvantage for businesses looking to finance large purchases upfront.
3. Balance Transfer Limitations: No balance transfer options could be a limitation for businesses looking to consolidate debt.
4. Penalty Fees: Late payment and returned payment fees can be as high as $39, and the APR penalty can reach up to 29.99%.

Amazon Business American Express Card Benefits

1. Cashback Rewards

One of the standout features of the Amazon Business American Express Card is its robust cashback rewards program. Here’s a detailed breakdown:
– 3% Cash Back: On select U.S. purchases at Amazon Business, AWS, Amazon.com, and Whole Foods Market. This is particularly beneficial for businesses heavily invested in the Amazon ecosystem. For instance, if your business spends $10,000 annually on these platforms, you stand to earn $300 in cashback.
– 2% Cash Back: On U.S. purchases at restaurants, gas stations, and wireless phone services purchased directly from service providers. This is advantageous for businesses with significant travel and communication expenses.
– 1% Cash Back: On all other purchases. While not as high as the other categories, it still provides a steady stream of rewards on miscellaneous expenses.

2. Sign-Up Bonus

Upon approval, you will receive a $100 Amazon Gift Card. This immediate benefit can be used to offset initial business expenses or to purchase office supplies and other necessities.

3. Travel and Purchase Protections

The Amazon Business American Express Card comes with an array of travel and purchase protections that add significant value:
– Baggage Insurance Plan: Provides coverage for lost, damaged, or stolen baggage when you purchase the entire fare for a common carrier vehicle ticket using your card. This includes up to $1,250 for carry-on baggage and up to $500 for checked baggage. For New York State residents, the coverage is up to $10,000 per covered trip.
– Global Assist® Hotline: Offers 24/7 emergency assistance and coordination services when traveling more than 100 miles from home. This includes medical, legal, and passport referrals, emergency cash wires, and missing luggage assistance.
– Car Rental Loss and Damage Insurance: Covers damage to or theft of a rental vehicle when you use your card to reserve and pay for the entire rental and decline the collision damage waiver at the rental company counter.
– Purchase Protection: Covers eligible purchases made with the card against accidental damage and theft for up to 90 days from the purchase date.
– Extended Warranty Protection: Extends the original manufacturer’s warranty by up to one additional year on eligible purchases.

4. No Foreign Transaction Fees

For businesses that operate internationally, the absence of foreign transaction fees is a noteworthy advantage. This ensures that you can make purchases abroad without incurring extra charges, thereby saving on costs.

Detailed Analysis of Cashback Rewards

Understanding the intricacies of the cashback rewards system is crucial for maximizing the benefits offered by the Amazon Business American Express Card. Here, we delve deeper into each category:

3% Cashback Category

The 3% cashback on select U.S. purchases at Amazon Business, AWS, Amazon.com, and Whole Foods Market is a significant draw for businesses that rely heavily on these platforms. For example:
– Amazon Business: Ideal for purchasing office supplies, electronics, and other business essentials.
– AWS (Amazon Web Services): Beneficial for businesses that utilize cloud services for their operations.
– Amazon.com: Useful for a wide range of purchases, from office furniture to software.
– Whole Foods Market: Perfect for businesses that provide meals or snacks for employees.

2% Cashback Category

The 2% cashback on U.S. purchases at restaurants, gas stations, and wireless phone services is designed to cater to businesses with substantial travel and communication expenditures. For instance:
– Restaurants: Beneficial for business lunches, client meetings, and employee meals.
– Gas Stations: Ideal for businesses with a fleet of vehicles or employees who travel frequently.
– Wireless Phone Services: Perfect for businesses that rely heavily on mobile communications.

1% Cashback Category

The 1% cashback on all other purchases provides a consistent reward for miscellaneous expenses that do not fall into the higher cashback categories. This ensures that every dollar spent using the card contributes to your cashback earnings.

Travel and Purchase Protections: In-Depth Review

The Amazon Business American Express Card offers a suite of travel and purchase protections that add significant value beyond the cashback rewards. Here’s an in-depth look at these benefits:

Baggage Insurance Plan

The baggage insurance plan is a crucial benefit for businesses that have employees traveling frequently. This coverage provides peace of mind by protecting against the financial impact of lost, damaged, or stolen baggage. The coverage limits are substantial, offering up to $1,250 for carry-on baggage and up to $500 for checked baggage. This can be particularly valuable when traveling with expensive business equipment or personal items.

Global Assist® Hotline

The Global Assist® Hotline is a 24/7 service that offers emergency assistance and coordination services when traveling more than 100 miles from home. This includes:
– Medical Referrals: Assistance in finding local doctors or hospitals.
– Legal Referrals: Help in locating legal services in the event of legal issues abroad.
– Passport Referrals: Guidance on replacing lost or stolen passports.
– Emergency Cash Wires: Assistance in wiring emergency cash.
– Missing Luggage Assistance: Help in locating lost luggage.
This service is invaluable for business travelers, providing a safety net during unexpected emergencies.

Car Rental Loss and Damage Insurance

This benefit covers damage to or theft of a rental vehicle when you use your card to reserve and pay for the entire rental and decline the collision damage waiver at the rental company counter. This can save businesses significant amounts in rental car insurance premiums and provides peace of mind when renting vehicles for business purposes.

Purchase Protection and Extended Warranty

– Purchase Protection: Covers eligible purchases made with the card against accidental damage and theft for up to 90 days from the purchase date. This is particularly useful for expensive business equipment and electronics.
– Extended Warranty: Extends the original manufacturer’s warranty by up to one additional year on eligible purchases. This can provide significant savings on repair or replacement costs for business equipment.

Rate and Fee Information

Understanding the rate and fee structure of the Amazon Business American Express Card is crucial for managing costs effectively. Here’s a detailed breakdown:

Purchase APR

The variable APR ranges from 19.49% to 27.49%, depending on your creditworthiness. This is relatively high, and businesses should aim to pay off their balances in full each month to avoid interest charges.

Fees

– Annual Fee: $0, which is a significant advantage for cost-conscious businesses.
– Cash Advance Fee: Either $5 or 3% of the amount of each cash advance, whichever is greater.
– Penalty Fees: Late payment and returned payment fees can be as high as $39. The APR penalty can reach up to 29.99%.

How to Avoid Paying Interest

Your due date is at least 25 days after the close of each billing period. You will not be charged interest on purchases if you pay your entire standard balance by the due date each month. This is crucial for businesses looking to avoid high-interest charges.

Payment Terms

Purchases will be included in the standard balance after their payment terms period has expired. You will not be charged interest on payment terms purchases during their payment terms period. However, you will