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Author Topic: Amazon vs Visa and MasterCard?  (Read 851 times)  

Offline The Hooded Claw

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Amazon vs Visa and MasterCard?
« on: July 26, 2017, 09:20:29 PM »
http://www.barrons.com/articles/why-amazons-a-threat-to-mastercard-and-visa-1501012943


http://www.barrons.com/articles/amazon-is-winning-at-credit-cards-too-1490374920

Ive had an Amazon credit card for years now, and love the 5% discount I get as a Prime member. I have assumed I was a bit of a fanboy doing this, but it seems that 23% (!) of Americans have an Amazon card. If Amazon goes directly into the card business,instead of using Visa as they do now, they could become a threat to Mastercard and Visa. I don't find it alarming or exciting, it just is. but I do find it interesting.

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Offline telracs

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Re: Amazon vs Visa and MasterCard?
« Reply #1 on: July 26, 2017, 09:24:36 PM »
both myself and the person i was dining with tonight pulled out amazon credit cards.....

Offline CegAbq

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Re: Amazon vs Visa and MasterCard?
« Reply #2 on: July 26, 2017, 10:11:14 PM »
I've got an Amazon Visa card that was 'upgraded' to a Prime Visa Card ... but my Costco Visa card overall still gives the better value.
I use my Amazon card for work purchases that I submit for reimbursement, to keep those purchases separate from my family purchases
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Offline Ann in Arlington

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Re: Amazon vs Visa and MasterCard?
« Reply #3 on: July 27, 2017, 04:29:13 AM »
I use my Amazon Visa for most everything. I have another Visa; used to be attached to Waldenbooks then just became a generic Visa. I could attach it to some other rewards program but there's no point; I don't use it really at all any more so when it expires in a month or so I'm not going to renew it.* And I have a Visa from USAA that I have some regular donations billed to. It used to be a Master Card -- years ago we liked having one of each because, with traveling internationally while in the Navy, there were some places one would work and some places the other would. USAA switched to Visa a few years ago.

The hubs uses a Visa through our Credit Union.

I also have an Amazon store card -- it's good on Amazon or on Woot.


* I do want to give a shout out to Chase who administers the Amazon Visa as well as the other one I have. I inadvertently sent the payment from my credit union to the wrong card via the on line bill pay system. I was afraid I'd have to keep the card I no longer want just to use up the credit, and get charged interest on the other because it meant the Amazon one didn't get paid off. But I called them, explained the situation, and they were great: re-posted the payment to the card I meant it for -- as of the original date, and reversed the interest charges. Can't complain about that.

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Offline lindnet

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Re: Amazon vs Visa and MasterCard?
« Reply #4 on: July 29, 2017, 07:12:42 AM »
Ann, what are the perks of having an Amazon store card if you have the Amazon Visa?  I guess I always thought there was no reason to have both, but now I'm intrigued.
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Re: Amazon vs Visa and MasterCard?
« Reply #5 on: July 29, 2017, 07:59:02 AM »
Ann, what are the perks of having an Amazon store card if you have the Amazon Visa?  I guess I always thought there was no reason to have both, but now I'm intrigued.

I think when I got it, there was a bonus credit of some amount -- possibly connected to the fact that I'm a Prime member. I don't use it that often, but it is my 'default payment' on Amazon and it works on Woot as well but, so far, nowhere else. The 5% back gets applied automatically, so if the thing costs $5, the bill comes showing a charge for $5 and a credit already applied for 25 cents. That said, I try to keep a credit on Amazon because most of what I buy is ebooks which are fairly low priced -- no matter the card I don't like multiple $5 or lower charges -- makes it harder to reconcile. Which I do like to do even if that makes me old fashioned. ;)

With the Visa branded Amazon card, I can use the points directly on Amazon as long as I don't "one click"; basically I can change the payment to make them apply. But if I want them applied to the bill as a statement credit, I have to go to the Chase card site and direct that to happen. That card, of course, is a regular Visa so I can use it anywhere.

I think the store card has a relatively high interest rate so you do want to watch it so that you pay it off in full each month. The rate on the Amazon Visa is significantly better, at least for me. Though I still don't let the balance ride unless I have to. Which I pretty much never do.

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Offline lindnet

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Re: Amazon vs Visa and MasterCard?
« Reply #6 on: July 29, 2017, 08:53:18 AM »
I think when I got it, there was a bonus credit of some amount -- possibly connected to the fact that I'm a Prime member. I don't use it that often, but it is my 'default payment' on Amazon and it works on Woot as well but, so far, nowhere else. The 5% back gets applied automatically, so if the thing costs $5, the bill comes showing a charge for $5 and a credit already applied for 25 cents. That said, I try to keep a credit on Amazon because most of what I buy is ebooks which are fairly low priced -- no matter the card I don't like multiple $5 or lower charges -- makes it harder to reconcile. Which I do like to do even if that makes me old fashioned. ;)

With the Visa branded Amazon card, I can use the points directly on Amazon as long as I don't "one click"; basically I can change the payment to make them apply. But if I want them applied to the bill as a statement credit, I have to go to the Chase card site and direct that to happen. That card, of course, is a regular Visa so I can use it anywhere.

I think the store card has a relatively high interest rate so you do want to watch it so that you pay it off in full each month. The rate on the Amazon Visa is significantly better, at least for me. Though I still don't let the balance ride unless I have to. Which I pretty much never do.

Thanks!  I guess I really don't need another card.  I just didn't want to be missing out on anything, lol!
Linda

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Re: Amazon vs Visa and MasterCard?
« Reply #7 on: August 04, 2017, 11:00:47 AM »
I have a Chase Amazon credit card.  Is that what some are talking about above?  This morning I paid for premiere membership for an Echo skill, Jeff Bolton's Sleep and Relaxation Sounds.  It pinged that credit card as Amazon Pay, not Amazon . com or Amazon Marketplace.
 
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Offline The Hooded Claw

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Re: Amazon vs Visa and MasterCard?
« Reply #8 on: August 04, 2017, 04:57:07 PM »
I think they are suggesting that Amazon might go into the credit card business directly, similar to what Sears did with the Discover Card long ago. Because of the level of visibility and trust Amazon has, coupled with the need to use a credit card to purchase, they suggest Amazon might get enough of a foot in the door of the credit card biz to give VISA and Mastercard a run for their money. I use my Amazon Visa for essentially all my Amazon purchases, hard to beat getting a 5% rebate. But I seldom use the card for buying anything else, got travel rewards cards for that!

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Offline gdae23

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Re: Amazon vs Visa and MasterCard?
« Reply #9 on: August 04, 2017, 11:32:20 PM »

With the Visa branded Amazon card, I can use the points directly on Amazon as long as I don't "one click"; basically I can change the payment to make them apply. But if I want them applied to the bill as a statement credit, I have to go to the Chase card site and direct that to happen. That card, of course, is a regular Visa so I can use it anywhere.


Ann, perhaps you could answer a question I've wondered about for a while.  If you use points to pay for part of your purchase, do you still get new points based on the entire purchase price or just for the part that wasn't paid for with the points?  I've been avoiding shopping with points because I've been assuming I would get less new points that way, but I don't actually know if this is true.

Offline Ann in Arlington

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Re: Amazon vs Visa and MasterCard?
« Reply #10 on: August 05, 2017, 05:14:17 AM »
Ann, perhaps you could answer a question I've wondered about for a while.  If you use points to pay for part of your purchase, do you still get new points based on the entire purchase price or just for the part that wasn't paid for with the points?  I've been avoiding shopping with points because I've been assuming I would get less new points that way, but I don't actually know if this is true.

I don't actually use points very often to buy things on Amazon. Every couple of months I go to the Chase site and have my points applied to my balance.

The few times I have I haven't checked to see if new points are awarded based on the whole price. But I suspect that it would only be based on the new amount charged to the card. Not sure, though, sorry. :(

I think they are suggesting that Amazon might go into the credit card business directly, similar to what Sears did with the Discover Card long ago. Because of the level of visibility and trust Amazon has, coupled with the need to use a credit card to purchase, they suggest Amazon might get enough of a foot in the door of the credit card biz to give VISA and Mastercard a run for their money. I use my Amazon Visa for essentially all my Amazon purchases, hard to beat getting a 5% rebate. But I seldom use the card for buying anything else, got travel rewards cards for that!

And I DO use my Amazon Visa for pretty much everything. We don't have a travel rewards card, 'cause we don't travel all that much, so it doesn't make sense. But we buy a lot via Amazon. I get points at a rate of 5% when I buy on Amazon (since I am a prime member, otherwise it'd be 3%), 3% at gas stations, restaurants, or drug stores, and 1% everywhere else. It works for us. :)
« Last Edit: August 05, 2017, 05:19:18 AM by Ann in Arlington »

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Offline The Hooded Claw

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Re: Amazon vs Visa and MasterCard?
« Reply #11 on: August 05, 2017, 06:32:18 PM »
I agree with Ann, to get Maximum rebates, never buy with points, apply the points to pay your balance on your card.

Ann, different things work for different people! A minor point, it is actually two percent back at restaurants, drug stores and gas stations, see here:

https://www.chase.com/personal/credit-cards/amazon/earn-rewards

But your point is valid. I have a GM credit card that gives a 5% reward on the first $5000 you spend each year (this is from memory, but I think is right) only valid as down payment on GM car. I've used this twice as a nice bonus to my down payment, and in a couple of years I will probably start using the GM Card again, in prep for buying a new car a few years after that. I don't pull it out till I'm a couple of years for car purchase. Which card is best depends on your current goals. But there is a lot to say in favor of cold hard cash towards your credit card payment!
« Last Edit: August 05, 2017, 10:58:02 PM by The Hooded Claw »

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Offline gdae23

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Re: Amazon vs Visa and MasterCard?
« Reply #12 on: August 06, 2017, 12:03:57 AM »
I don't actually use points very often to buy things on Amazon. Every couple of months I go to the Chase site and have my points applied to my balance.

The few times I have I haven't checked to see if new points are awarded based on the whole price. But I suspect that it would only be based on the new amount charged to the card. Not sure, though, sorry. :(


I agree with Ann, to get Maximum rebates, never buy with points, apply the points to pay your balance on your card.

Thanks - I've also had a feeling that was probably the case. I've started getting cash deposits directly into my bank account, although I've used the rewards as statement credits to pay off the charge card as well. I think I'll continue to stay away from using the points as Amazon payments.