Amazon has launched its Amazon Reload for Prime members which allows them to earn 2% cash back rewards every time they reload their gift card balance with their checking account or debit card.
TechCrunch reported that the program is intended to encourage more people to sign up for $99 a year Prime memberships – estimated at 63 million in the U.S. alone – giving them “free” two-day shipping and same-day shipping in certain markets along with other perks. Importantly, the program also allows Amazon to avoid paying credit and debit card transaction fees, a potential savings of millions.
Another advantage Amazon: the program may encourage Prime members to load cash into their Amazon balance, ensuring that they’ll never accidently pay for an item using their debit or credit card directly and miss out on the cash back option.
The 2% rewards are added to a member’s gift card balance every time they reload, instead of being calculated on a per transaction basis.