Until 2021, Amazon’s credit card was among the most popular in Germany. For a long time, there was no successor. Now, there is a promotional offer for new customers. However, the card can become quite expensive.

The Amazon credit card was once one of the most favored in Germany, boasting up to a million users nationwide. It was announced in October 2021 that the partnership with the current bank, LBB, would end. Surprisingly, Amazon couldn’t introduce a new successor until 2023. Meanwhile, ADAC, which also offered a credit card with LBB, secured a new partner, Solaris, in time. This delay has been unfortunate for Amazon as they have lost their customer base and must now spend on marketing efforts to regain many customers. But now, new applicants can benefit from this.

Those who apply for the card now will receive a credit from the e-commerce giant. Former Amazon credit card users with a Prime membership get a 25-euro credit, while those without Prime get 15 euros. New customers receive a 15-euro credit if they are Prime members and 10 euros if they are not.

The eligibility for free cards is now extended to all Amazon customers. Previously, it was free only for Prime members. However, the terms have worsened significantly. Purchases on Amazon now earn 1% back in points (cashback). “The hype around Trade Republic’s card has shown that the ‘save money while spending’ method resonates with customers,” says Burkhard Wagner, partner at consulting firm Advyce & Company.

Each point is equivalent to one cent, which can only be spent on Amazon. Other purchases earn 0.5% back in points. Amazon also promises special promotions offering 2% back for Prime members. With the old card, customers could earn 3% back in points for Amazon purchases, and 2% without Prime. “Point collection will tie users even more closely to Amazon,” Wagner adds.

Costs can escalate for customers using special features—if the monthly bill isn’t paid in full, Santander provides a loan. “Extraordinarily high interest rates threaten unpaid balances. Flexible repayment quickly becomes a dangerous debt trap for the unwary customer,” warns Wagner. The annual effective interest rate is a hefty 20.13%. Wagner calls this rate “exceptionally high.” Consumer protection agencies have recently scrutinized similar programs for good reason. Given a generous spending limit of 2000 euros upon successful application, customers can quickly incur high costs. A personal loan is significantly cheaper. Therefore, automatic debit from the checking account should be activated for such credit cards to avoid falling into debt.

Withdrawing cash is also expensive: Amazon charges 3.9% of the withdrawn amount, at least 1.50 euros. Using the card outside the Eurozone incurs a foreign transaction fee of 1.5% on top of the often unfavorable exchange rate. Currently, there are significantly cheaper cards that offer higher cashback or lower costs. Thus, the card is worthwhile only for those who shop heavily on Amazon. The card cannot yet be applied for, as the feature is being rolled out gradually.