The Pros and Cons of the Amazon Business Credit Card: Is It Right for Your Business?
Running a business can be expensive, which is why owners are always on the lookout for ways to save money. One option to consider is the Amazon Business Credit Card. This card offers cash back, rewards, and other perks for purchases made on Amazon and at select merchants. But is it right for your business? Let’s take a closer look at the pros and cons.
Pros
1. Cash back and rewards
One of the biggest benefits of the Amazon Business Credit Card is the cash back and rewards it offers. Cardholders can earn 5% cash back or 90-day terms on Amazon purchases and purchases at select merchants. This can add up quickly, especially for businesses that regularly purchase from Amazon.
2. No annual fee
Unlike many other business credit cards, the Amazon Business Credit Card has no annual fee. This can save businesses a significant amount of money in the long run. It also means that you won’t have to worry about paying an annual fee for a card that you only use occasionally.
3. Multiple card options
The Amazon Business Credit Card offers a range of options to meet the needs of different businesses. There’s the Amazon Business Prime American Express Card, which is designed for businesses with a Prime membership. There’s also the Amazon Business American Express Card, which is available to all businesses.
4. Purchase protection
The Amazon Business Credit Card comes with purchase protection, which can be helpful if a purchase goes wrong. If you buy an item with the card and it gets damaged or stolen within 120 days, you can be reimbursed for the cost of the item.
Cons
1. Limited acceptance
One of the biggest drawbacks of the Amazon Business Credit Card is that it has limited acceptance. While the card is widely accepted on Amazon, it may not be accepted at other merchants. This can be a problem for businesses that make purchases from a wide range of vendors.
2. High APR
The Amazon Business Credit Card has a high APR, which can be a problem for businesses that carry a balance from month to month. The APR can be as high as 24.99%, so it’s important to be mindful of this when using the card.
3. Late payment fees
Another potential downside of the Amazon Business Credit Card is the late payment fees. If you miss a payment or make a late payment, you could be hit with a fee of up to $39. This can add up quickly and eat into any cash back or rewards earned from using the card.
4. Risk of overspending
Using a credit card can be tempting, and the Amazon Business Credit Card is no exception. It’s important to be mindful of the risk of overspending and only use the card for purchases that are within your budget.
Conclusion
In conclusion, the Amazon Business Credit Card can be a useful tool for businesses looking to save money on purchases. With cash back, rewards, and no annual fee, it’s definitely worth considering. However, the limited acceptance, high APR, late payment fees, and risk of overspending should also be taken into account. Ultimately, it’s up to each individual business to determine whether the card is right for their needs.
