Right in time for Black Friday and holiday season shopping, American Express cardholders now have greater flexibility in how they pay for their Amazon purchases. Effective immediately, those with eligible American Express cash-back credit cards can use their Reward Dollars when checking out on Amazon.
What makes this particularly exciting? Reward Dollars used at checkout will have the same value as they would when redeemed as a statement credit, meaning 1 Reward Dollar equates to $1 at Amazon. This redemption value is impressive when compared to other credit card reward programs that allow cardholders to shop at the online retailer.
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New Amazon Redemption Option for American Express Cash- Back Credit Cards
The new redemption option is straightforward. Cardholders of American Express cash-back credit cards can redeem their Reward Dollars at checkout on both Amazon.com and the Amazon mobile app. A Reward Dollar is worth $1 towards purchases on Amazon just as it is when redeemed for a statement credit.
Holders of the following American Express credit cards can take advantage of this new redemption option:
- Blue Cash Everyday® Card from American Express (Terms apply)
- Blue Cash Preferred® Card from American Express (Terms apply)
- American Express Cash Magnet® Card*
- Morgan Stanley Blue Cash Preferred® American Express Card*
- American Express Blue Cash® Card (not accepting new applications)
- American Express Business Blue Cash Rebate® Card (not accepting new applications)
- American Express Classic Blue Cash for Business® Card (not accepting new applications)
- American Express Platinum Business Premium Cash Rebate® Card (not accepting new applications
How To Use Reward Dollars When Checking Out on Amazon
In order to use Reward Dollars at Amazon, cardholders will need to link their enrolled, eligible American Express card to their Amazon.com account. At checkout, cardholders can select “Reward Dollars” as their preferred payment method to cover all or a portion of the total purchase amount.
After the order is placed, Reward Dollars applied will be converted to dollars and deducted from the checkout total on the order summary page.
How Does Amazon Shopping With Amex Rewards Dollars Compare?
Many credit card issuers are involved with Amazon’s Shop With Points program, allowing cardholders to redeem their points toward Amazon purchases at checkout. However, in most cases this redemption option is not the best for maximizing your rewards.
With this new redemption option, American Express Reward Dollars are each worth $1 toward Amazon purchases. This trumps many other programs in which points and reward currencies are often only worth 0.7 to 0.8 cents each.
Other American Express Cards
Although this redemption option is new for American Express cash-back cards, redeeming rewards for Amazon purchases is already an option for American Express cards that earn Membership Rewards. Examples of Membership Rewards-earning cards include The Platinum Card® from American Express (Terms apply), the American Express® Gold Card (Terms apply) and the American Express® Green Card*, among others.
However, using Membership Rewards to pay for Amazon purchases results in a low-value redemption of 0.7 cents per point. As a result, cardholders can usually get better value for their Membership Rewards by transferring points to travel partners, typically at a 1:1 ratio.
Other Credit Card Reward Programs
As for other credit card rewards programs, the value of points when redeemed for Amazon purchases is typically less than what we are seeing with Amex’s new offering. Here is a breakdown of what major reward currencies are worth when checking out via Amazon:
- Bilt Rewards: 1 point = 0.7 cents
- Capital One cash back: 1 point = 1 cent
- Capital One miles: 1 point = 0.8 cents
- Chase Ultimate Rewards®: 1 point = 0.8 cents
- Citi ThankYou Points: 1 point = 0.8 cents
- Discover cash back: $1 Cashback Bonus® = $1
- Discover miles: 1 point = 1 cent
For the most part, redeeming credit card rewards towards Amazon purchases is not usually a lucrative option across card issuers, considering many issuers offer a value of 1 cent per point when redeeming rewards for cash back or statement credits. This again showcases the value and flexibility that American Express is offering with this new Amazon redemption option on its cash-back cards.
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Bottom Line
If you’ve been stashing away Reward Dollars on your American Express card, now is a perfect time to put them to use. Whether you are planning on breaking the bank for holiday shopping through Amazon or are a casual online shopper, having an additional redemption option that comes with solid value for your rewards is a plus in our book.
