Amazon Releases Brand New Card For Prime Members

Inc. (AMZN) in collaboration with J.P. Morgan Chase & Co.(JPM) has launched a new credit card for Prime customers.

Amazon is revamping its cobranded rewards card, adding a higher tier of rewards for people who pay a $99 annual fee - as 65 million people already do - for Amazon Prime membership. It will give 2 percent back from money spent in restaurants, gas stations and drugstores, and 1 percent back on every other purchase.

Amazon is about to upgrade its previous rewards credit card, but there is a catch: It will be exclusive to Prime members. The service costs $99 every year and comes with the added benefit of free of cost two-day shipping.

The card is only available to Prime members. It will also have no annual fee not any foreign transaction fees. Prime members will receive these new benefits using their existing card until their new card arrives, the companies said.

Amazon introduced the Amazon Prime Rewards Visa Signature Card (as it's officially named) in partnership with Chase. They'll also get a $70 gift card upon approval.

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Amazon didn't say what would happen if cardholders lapsed on their Prime subscription. Costco's Visa Anywhere cards, issued by Citigroup (C), offer just 2% cash back on Costco purchases. The program is key to Amazon's bottom line, given that Prime members may spend more than double what non-members do, according to some analysts.

Another change is that the new product will be metallic rather than plastic, like the much-buzzed-about Chase Sapphire Reserve, rather than plastic. Almost half of all consumers now bypass Google and go directly to Amazon for product searches and reviews.

Users who tend to overstock on Amazon trivia are well aware of the fact that Amazon is already the proud mastermind behind three very successful store cards.

So is there any reason to stick with the store card? Freedom credit card holders had always been able to shop at Amazon through their accumulated points.