Amazon has a distinct position in terms of credit. It has over 200 million Prime members, millions of users on its site, and over 2.5 million sellers. This, like other shops, presents a significant opportunity to offer credit products and financing choices to customers. Furthermore, its seller platform provides the opportunity to arrange company credit.

Amazon’s move into financial services has always been about increasing spending opportunities within the Amazon ecosystem. Historically, the corporation has been active in numerous fintech fields, including internet payments. The company then offered small business lending in 2011, and from there began to roll out several credit card solutions for both small business and consumer consumers.

Synchrony Bank’s Amazon Secured Card and Amazon Prime Secured Card are distinct credit cards with two sets of characteristics: the Secured Card features and the Store Card features. Rates, fees, and incentives differ between the two credit features. Only the Secured Card features will be available to you after approval. The Secured Card features need a security deposit equal to the credit limit on your account. Based on eligibility criteria and your credit history, Synchrony Bank will evaluate if you are qualified to opt in to convert to the Store Card features of the account after 12 months.

If you are qualified, you may choose to switch to the Store Card features, but you are not compelled to do so, in which case your access to the Secured Card capabilities will be permanently revoked. The option is always yours, and you will be given all of the information you need to make the best decision for you. The Amazon Secured Card and Amazon Prime Secured Card, like the Amazon Store Card and Amazon Prime Store Card, can be used on Amazon.com as well as with specified Amazon affiliates.

You will receive equal monthly payment offers and 2% back every day with an eligible Prime membership as an Amazon Secured Cardholder (5% back with an eligible Prime membership if you were accepted for an Amazon Secured Card prior to January 1, 2021). In addition to these perks, if you were authorized for the Amazon Secured Card prior to January 1, 2021, you will be eligible for special financing options. Finally, the Amazon Secured Card allows you to convert to Store Card features.

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Synchrony Bank will notify the major credit bureaus about your account activity. Building a track record of timely payments will help you improve your credit. As a cardholder, you have various resources at your disposal to help you understand how to build credit responsibly. Please visit the Credit Education website to learn more about using credit responsibly. By registering for TransUnion CreditViewTM after your card is open, you may also monitor your credit score and simulate how it might change based on your actions.

Amazon financing includes a variety of credit product and service options to assist consumers and small business customers in making payments on purchases over time. Loan models include both installment and open-ended lending arrangements, and terms and conditions vary based on creditworthiness.

Amazon began offering small business loans to its merchants in 2011. The financing, which was not widely disclosed, was cautiously granted to sellers based on Amazon’s selling criteria. Amazon’s small business lending platform has issued over $5 billion in loans to small businesses since its inception. Its offering is still available exclusively via invitation.

Amazon users can get financing through four credit cards: the Amazon Rewards Visa Card, the Amazon Prime Rewards Signature Visa, the Amazon Store Card, and the Amazon Secured Card. If approved, applicants are given a credit limit based on their credit score and other screening variables.

The Amazon Store Card was initially introduced in 2015. There are two iterations. There is one card for Prime members and one for non-Prime members. There is no annual charge for the Amazon Store Card. It is provided in collaboration with Synchrony Bank. Cardholders who have a Prime membership can use the card to gain 5% cash back on any Amazon transaction.

Every authorized cardholder receives an Amazon gift card. There are promotional and special financing options available. After selecting the Amazon Store Card as their payment option, customers can choose between equal monthly payments or special financing.

Payments made on a monthly basis that are equal:

• Six equal monthly payments when financing purchases between $50 and $599.99
• 12 equal monthly payments when financing purchases of $600 or more
• 24 equal monthly payments when financing select purchases.

With these options, cardholders make equal payments on purchases made through Amazon at a 0% annual percentage rate (APR) for the duration of the financing period. The required amount under this option is the purchase price, including tax and shipping, which is divided equally by the length of financing. So, if you purchase something for $450, you have six months to pay it off. Your payments would be $75 per month ($450 ÷ 6).

Customers who carry a balance beyond the term of the financing incur a late fee until the balance is paid in full. Interest is also assessed on the full promotional balance from the date of the purchase.

The other option is special financing, which also has three tiers:

• Six months of special financing on purchases of between $150 and $599.99
• 12 months of special financing on purchases of $600 or more
• 24 months of special financing on select purchases.

Customers don’t pay interest if the entire purchase is paid off within the specified time, but monthly minimums are required. Any balance that remains incurs interest and a late fee. The APR is 25.99%, and interest is also assessed on the full promotional balance from the date of the purchase, even if you’ve made payments. This means it’s in your best interest to pay off the card before the specified date; otherwise, you’ll incur a lot of extra charges.

Amazon has a significant global retail reach. Several solutions have been developed to compensate for the diversity of its customer base and how they can pay. Customers can obtain credit cards solely for use on Amazon, and small businesses can sell on the company’s ecommerce platform and accept payments via a variety of methods.

Except in rare cases where it believes a business is secure enough to invest in, Amazon’s financing is normally exclusively available through its credit cards.