Amazon Will Now Refund You 2% Cashback for Debit Card Payments
Amazon wants to reward you for buying things from them , but there is a catch: you have to use your debit card and transfer cash to Amazon account. It’s not that hard, but here’s what you should know about the new Amazon Reload program.
First, you must be an Amazon Prime customer. Then you link your bank account and debit card to Amazon (you also need a driver’s license). From there, you transfer money to an Amazon virtual gift card. You can choose any amount you want. You now have a gift card balance, and when you pay for Amazon purchases with that balance, you receive a 2% cashback bonus on all your purchases. This is not a bad deal if you buy a lot of stuff on Amazon anyway.
However, some point out that Amazon is just taking it one step further to become your bank . Last year they partnered with Wells Fargo to offer discounts on student loans, and now they want to keep your money in a gift card balance. However, this is also Amazon’s way of avoiding credit card fees . Credit card rewards have to come from somewhere, and credit card companies usually pass the cost on to merchants big and small, and it is likely that these sellers are passing the cost back onto us by inflating their prices. Thus, credit card rewards, as great as they seem, may not be all that nice in the big picture. According to Verge, Amazon just found a way around this issue :
“These fees are typically more than 2 percent that Amazon offers customers as a bonus; therefore, the company simultaneously saves and transfers part of the funds to customers. “
However, 2% cashback is not a bad deal. Most credit cards have a 1% rebate, although some will include bonus periods where they offer a 5% refund on certain purchases, including Amazon purchases. You can compare some of these maps using sites like NerdWallet or even Consumer Reports .
Apply our standard disclaimer : if you are going to use the rewards credit card, do so responsibly. In some cases, they can pay off (signup bonuses are where they are), but not if you wind up in debt trying to get 1% cashback. This is just plain silly, so be sure to master some basic money habits before you start playing with credit card rewards.