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Amazon/AmEx Business Credit Card: Perks, Reviews, Rewards Rate

Amazon/AmEx Business Credit Card: Perks, Reviews, Rewards Rate


Jason Moser: Lastly, we want to talk a little bit about
American Express tying up here with Amazon. If I’m reading correctly, this is primarily
a business relationship from what I can see. The one thing that I found noteworthy was,
it didn’t look like there was any type of annual fee involved with this relationship.
American Express is pretty notorious for that annual fee. Talk a little bit more about the American
Express and Amazon tie-up, and what exactly that’s going to mean for both companies. Matt Frankel: This was actually probably my
favorite announcement there just because I’m a huge Shark Tank fan, and Barbara Corcoran
was the spokesperson giving this announcement. Moser: It’s a good show, I like it too! Frankel: On a personal level, I really
enjoyed this announcement. You’re correct, it’s a business card.
This is not a personal credit card product. And yes, it’s no annual fee. But the most unique thing is that cardholders
have a choice — on one hand, Amazon Prime members could choose to get 5% rewards on
any Amazon purchase, including Whole Foods; or, they can choose
to have 90-day payment terms. What’s really unique about this is, this is
not just 90-day interest-free payments. This is 90 days of no payments, meaning that
you charge something, and you’re billed without any interest comes due in 90 days. This is a really big benefit for
businesses that have cash flow issues. Let’s say you sell something to somebody. You need to finance the cost of goods to make
whatever you’re selling, but then you’re not going to get paid for a couple of months. This really allows you to manage your cash
flow so much better without that extra expensive credit card interest, or any payments
due at all, until your receivables come in. I don’t know of any other credit card
that has zero payments for 90 days. There’s a lot of interest-free credit cards, but you’re
still to make minimum payments along the way. That was the big takeaway I saw. And, it’s a no annual fee product,
and 5% cashback if you choose that route. It’s a great rewards rate for a
no annual fee credit card to begin with. There’s a couple of big perks
to this for small businesses. Moser: That’s a couple of really a behemoth
companies in the space, and it looks like they’re tackling what is a problem with a
unique and compelling solution. I have to believe that they
should gain a little traction with that.

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