Amazon’s Prime Credit Card Gives You 5% Cash Back

Amazon is adding to its offerings through Amazon Prime.

The Amazon Prime Store Card debuted in March, and as Re/code said on Wednesday, marketing efforts have been both relatively slow and quiet.

This latest perk is a quite generous cash-back card (though the fine print could be a whole other story) that is likely cheaper for Amazon to administer than others’ credit cards and, more importantly, helps further lock in Prime members.

And if you are a frequent Amazon shopper, Williams is probably right. It has to pay much higher processing fees to Visa and Mastercard than it does on a store card. There are also various no-interest financing options available on purchases over certain dollar amounts. One in five purchased from Amazon that day because of advertising, with three out of five Amazon Prime subscribers purchasing that day.

The new Amazon Prime Store Card appears to compete directly with Target’s REDcard which gives cardholders 5% back on purchases at Target.

COMSCORE Co-Founder/Chairman Emeritus GIAN FULGONI said: “comScore data revealed that there were more AMAZON buyers and transactions on Prime Day than we observed on Black FRIDAY in 2014, which is particularly significant since that was the fourth heaviest overall e-commerce spending day of the entire 2014 holiday season”. The 5% cash back bonuses come in the form of monthly statement credits, and are applicable to all Amazon.com purchases-even those that aren’t made through Prime.

Well, Amazon is going to try to beat it.