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Amazon Pay has expanded its equal monthly payments program for shoppers who have the Prime Visa and the Amazon Visa. Cardholders can now choose this option to save on interest and spread out payments when they make purchases at stores beyond Amazon.
Cardholders can get a 0% annual percentage rate (APR) for six or 12 months on purchases of $50 or more made with thousands of participating online retailers. Among the retailers included are Lenovo, Kate Spade, Coach, Tennis Express and Authentic Watches.
Here's what you need to know about this change.
Amazon also offers an Amazon Store Card, which is good only for use at Amazon, and two Amazon business credit cards. The equal monthly payments option does not apply to these cards.
How it works
Minimal effort is required to use equal monthly payments outside Amazon. To start, you need to have an eligible Amazon card set up as your default payment method. After that, all you have to do is select the Amazon Pay button to check out with a participating retailer and log in with your existing Amazon account. Amazon Pay will use the information stored in your Amazon Wallet like an email address, shipping address, payment method and other details to make checking out easy.
When you make a purchase using equal monthly payments, the entire amount is charged immediately to the Prime Visa or Amazon Visa. The interest-saving balance in your credit card statement shows the amount due every month to avoid interest charges. This specific balance factors in the equal monthly payment amount and nonpromotional balances due for that billing cycle.
In exchange for more breathing room, though, you'll be giving up the chance to earn rewards. When you choose the equal monthly payments program, those purchases won't earn credit card rewards. The Prime Visa and Amazon Visa currently earn 1% on purchases outside Amazon, Whole Foods, Chase Travel, restaurants, gas stations, and local transit and commuting.
Is it a good deal?
For Amazon cardholders who tend to carry a balance, the latest change can provide additional savings at a time when interest rates are at a record high. The Amazon Visa has a variable interest rate of 19.49% to 27.49% (rate accurate as of August 2023). The ongoing APR is 19.49%-27.49% Variable APR for the Prime Visa. Still, with these high interest rates, it’s ideal to charge only what you can afford to pay as soon as possible to keep costs low.
All information about the Amazon Visa Card has been collected independently by NerdWallet.
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