Amazon Prime Rewards Visa credit card holders will now receive 5% cash back when the card is used to shop at Whole Foods.
Starting in February, holders of the Amazon Prime Rewards Visa credit card will not only continue receiving their 5 percent cash back from purchases on Amazon.com, but they can now get 5 percent cash back when they use the card to shop at Whole Foods.
Including Whole Foods stores in the Amazon Prime Rewards Visa Card rewards program is just the latest added incentive. Since purchasing Whole Foods last year for almost $14 billion, Amazon has been rolling out perks between the two companies for Prime members. Earlier in February, Amazon introduced two-hour grocery deliveries to its Prime members from four Whole Foods locations (with more to follow): Austin, Cincinnati, Dallas, and Virginia Beach.
So why all the Whole Foods perks? It’s a reciprocal relationship for the two companies. Amazon can strengthen its Prime business — a core area for the company — and develop it as an indispensable service for more customers with credit cards. As for Whole Foods, it will get Amazon shoppers to their stores for more than just groceries.
This isn’t the first attempt to lure Amazon shoppers to Whole Foods stores. Since the acquisition, Amazon has been cutting prices at Whole Foods stores and it started selling Echo devices onsite.
From the Feb. 20 announcement, John Mackey, Whole Foods Market co-founder and CEO said in a press release, “We are excited to launch the Amazon Rewards Visa Card in our stores, offering benefits to our customers on all of their purchases at Whole Foods Market.”
For Amazon shoppers who aren’t Prime members, they are not excluded from the cash-back rewards. Amazon offers another card, Amazon Rewards Visa. These cardholders can get the 3 percent cash back at Whole Foods, similar to their Amazon.com perk. Neither card has an annual fee.
Making the Most of Your Amazon Prime Rewards
While the allure of the Amazon credit cards is high with its perks, it’s important to remember to use good judgment with any rewards credit card. Here are some basic tips from the experts:
- Pay off the card’s balance fully every month to avoid accruing interest while earning either cash or points from monthly spending. If cardholders carry a monthly balance, the rewards could be offset by those pesky interest charges. Why? Most credit cards carry a double-digit annual percentage rate, which can whittle away any earned rewards.
- Spend wisely, as it can be tempting to spend to earn rewards. However, overspending could result in debt. And if this debt is not paid it off each month, the card perks will be a moot point, especially if you take on more debt than you can afford to pay off.
- Read the fine print for any credit card, as some cards might require a specific amount spent per month, different rewards could be offered quarterly, or the card might require an additional registration to receive perks. Failing to do so could result in additional credit card spending without any of the desired rewards.