topic Re: Amazon renews Prime credit card tie-up with JPMorgan Chase after flirting with American Express in Credit in the News

Amazon renews Prime credit card tie-up with JPMorgan Chase after flirting with American Express

gdale6 — Thu, 31 Mar 2022 15:12:59 GMT

Amazon has chosen to renew a deal allowing JPMorgan Chase to issue the tech giant’s flagship rewards credit card, ending months of heated negotiations, CNBC has learned.
American Express and Synchrony were among the issuers involved in discussions, and Mastercard had hoped to displace Visa as payments network, said people with knowledge of the talks.
Known for driving hard bargains with partners, Amazon pushed issuers to accept their terms, which included having to fork over part of the bank’s revenue from making loans, as well as rebate some of the interchange fees the bank would normally keep, said the people.

https://www.cnbc.com/2022/03/31/amazon-prime-amazon-renews-prime-credit-card-pact-with-jpmorgan-after-flirting-with-american-express.html

Amazon renews credit card relationship with Chase

FormerCollegeDJ — Fri, 01 Apr 2022 14:08:40 GMT

I'm a bit surprised I haven't seen this posted here, but according to the following CNBC article, Amazon has decided to renew its credit card agreement with Chase. Both American Express and Synchrony had negotiated with Amazon, and Mastercard was also hoping to become the new processing network, replacing Visa. However, Amazon ultimately decided to remain partners with Chase (and retain Visa as the processing network).

https://www.cnbc.com/2022/03/31/amazon-prime-amazon-renews-prime-credit-card-pact-with-jpmorgan-after-flirting-with-american-express.html

NOTE: This post was moved from the general Credit Card forum. I usually don't check this forum and didn't see the post above.

Re: Amazon renews credit card relationship with Chase

Remedios — Thu, 31 Mar 2022 15:49:12 GMT

@FormerCollegeDJ I can remove the link to the article and we can keep keep this thread in Credit Cards (feel free to add link to existing thread in Credit In The News)

If you wish to keep the article, I will move the thread and merge it with "who they going with, plz make it not be Chase" one

Re: Amazon renews credit card relationship with Chase

FormerCollegeDJ — Thu, 31 Mar 2022 15:54:46 GMT

@Remedios wrote:
@FormerCollegeDJ I can remove the link to the article and we can keep keep this thread in Credit Cards (feel free to add link to existing thread in Credit In The News)
If you wish to keep the article, I will move the thread and merge it with "who they going with, plz make it not be Chase" one

@Remedios - I'm good either way. I actually planned on posting it in the thread you mentioned, but I couldn't find it after doing a quick search (probably because Amazon wasn't listed in the title of that thread). Go ahead and move my post to that thread.

My goal was to make sure people were aware of Amazon's and Chase's renewal agreement.

Re: Amazon renews credit card relationship with Chase

SouthJamaica — Thu, 31 Mar 2022 15:58:49 GMT

@FormerCollegeDJ wrote:
I'm a bit surprised I haven't seen this posted here, but according to the following CNBC article, Amazon has decided to renew its credit card agreement with Chase. Both American Express and Synchrony had negotiated with Amazon, and Mastercard was also hoping to become the new processing network, replacing Visa. However, Amazon ultimately decided to remain partners with Chase (and retain Visa as the processing network).

https://www.cnbc.com/2022/03/31/amazon-prime-amazon-renews-prime-credit-card-pact-with-jpmorgan-after-flirting-with-american-express.html

Yay.

Re: Amazon renews credit card relationship with Chase

Ficoproblems247 — Thu, 31 Mar 2022 16:04:26 GMT

Well this solidifies my decision to garden until I'm under 5/24.

Re: Amazon renews credit card relationship with Chase

LADave — Thu, 31 Mar 2022 17:38:24 GMT

@Ficoproblems247 wrote:
Well this solidifies my decision to garden until I'm under 5/24.

This seems like better news for those who already have the card and want to maintain a good banking relationship with Chase, than it does for people who don't have it yet and are 5/24+.

I didn't know about 5/24 when I got the card, and I'm just glad I got it before I went over it.

Chase has been more leniant about 5/24 with the Amazon/Prime co-branded cards than with their own cards lately, so there may be a chance to get it sooner if you're willing to risk a hard pull.

Re: Amazon renews Prime credit card tie-up with JPMorgan Chase after flirting with American Express

JR_TX — Thu, 31 Mar 2022 17:42:47 GMT

Well I hope this doesn't stop Chase's recent SL/CLI generosity now that their partnership is secured.
This card is in the pipeline for me.

Re: Amazon renews Prime credit card tie-up with JPMorgan Chase after flirting with American Express

CreditAggie — Thu, 31 Mar 2022 19:20:41 GMT

I have to wonder if the recent loosening up of 5/24 and generous CLIs on the Amazon Visa was an effort to renew the agreement. Anyway, I am glad the card is staying with Chase as they have been great in my experience. I refuse to have any card issued by Synchrony Bank and would have combined the Amazon Visa's limit with my CFF if it was to go to Synchrony. I find the uncapped 5% on Amazon to be invaluable.

Re: Amazon renews Prime credit card tie-up with JPMorgan Chase after flirting with American Express

Adkins — Thu, 31 Mar 2022 20:19:12 GMT

Excellent! I'd rather not have an unnecessary new account.

Re: Amazon renews Prime credit card tie-up with JPMorgan Chase after flirting with American Express

LADave — Fri, 01 Apr 2022 12:30:20 GMT

@Adkins wrote:
Excellent! I'd rather not have an unnecessary new account.

For what it's worth, if another bank had taken over your account, that wouldn't necessarily have lowered your AAOA or increased your number of accounts for your FICO scores.

Re: Amazon renews Prime credit card tie-up with JPMorgan Chase after flirting with American Express

uncredited — Fri, 01 Apr 2022 18:20:32 GMT

This is happy news considering my next card after my next card was going to be this, and I liked the idea of it being Chase, I'd have been less interested if it were Sync or Cap1 or such. Much as a pain as it is to get the ball rolling with them.

Re: Amazon renews Prime credit card tie-up with JPMorgan Chase after flirting with American Express

805orbust — Sat, 02 Apr 2022 01:37:05 GMT

Wow... very cool. However I've been dd-ing this one in the hopes of Chase issuing an auto cli in a few... wonder if that'll affect it. Oh well, I'll give it a few months.

Re: Amazon renews Prime credit card tie-up with JPMorgan Chase after flirting with American Express

Adkins — Mon, 04 Apr 2022 08:11:09 GMT

@LADave wrote:
@Adkins wrote:
Excellent! I'd rather not have an unnecessary new account.
For what it's worth, if another bank had taken over your account, that wouldn't necessarily have lowered your AAOA or increased your number of accounts for your FICO scores.

This would depend on how they handled it. When Capital One took over the Synchrony Walmart portfolio, my old Synchrony Walmart account was closed and a new Capital One Walmart account was opened. They are both on my reports. Yet when BlisPay was bought for the last time, the old BlisPay account completely dropped off my credit report and the new account holder popped up. (The first time BlisPay was bought nothing changed in my credit report.) This wouldn't be the first time it's happened. I'm just glad I closed my Fingerhut account when I was rebuilding. That would be another headache right now, if I needed to keep it.

Re: Amazon renews Prime credit card tie-up with JPMorgan Chase after flirting with American Express

SouthJamaica — Sat, 02 Apr 2022 12:21:18 GMT

@805orbust wrote:
Wow... very cool. However I've been dd-ing this one in the hopes of Chase issuing an auto cli in a few... wonder if that'll affect it. Oh well, I'll give it a few months.

I don't know what you mean by "dd-ing" it.

Re: Amazon renews Prime credit card tie-up with JPMorgan Chase after flirting with American Express

Anonymalous — Sat, 02 Apr 2022 14:30:19 GMT

@CreditAggie wrote:
I have to wonder if the recent loosening up of 5/24 and generous CLIs on the Amazon Visa was an effort to renew the agreement.

I don't know if that's true, but I can definitely see Amazon being unhappy with the 5/24 rule. Chase probably does it to limit churn and risk, but Amazon probably wants to get their card in the hands of as many Prime members as possible.

Re: Amazon renews Prime credit card tie-up with JPMorgan Chase after flirting with American Express

CreditMagic7 — Sat, 02 Apr 2022 16:33:29 GMT

Those like myself are the odd man out. Certainly Chase cardholders will continue to benefit.

I had Amazon for 10 years and shopped strongly with them using their (at the time) Synchrony sponsored account but with Amazon retaining Chase that completely kills any chance for potential customers sporting for example a BK-which Chase locks those out for 10 years period.

Not to mention Chase 5/24 silliness that really only came about due to heavy churners.

Bottom line now is that Amazon will NOT build as large a new customer base tied to Chase (and all their card customer restraints) then they would had they moved away from them. But when your filthy stinking rich as both obviously are, they couldn't possibly care less. It's just business.

Re: Amazon renews Prime credit card tie-up with JPMorgan Chase after flirting with American Express

LADave — Sat, 02 Apr 2022 20:11:17 GMT

@Anonymalous wrote:
@CreditAggie wrote:
I have to wonder if the recent loosening up of 5/24 and generous CLIs on the Amazon Visa was an effort to renew the agreement.
I don't know if that's true, but I can definitely see Amazon being unhappy with the 5/24 rule. Chase probably does it to limit churn and risk, but Amazon probably wants to get their card in the hands of as many Prime members as possible.

It does make you wonder what Chase and/or Amazon had to give up on in order to continue the partnership, and what their motivations were.

Chase has been approving people who wouldn't have been approved for the card in the past (particularly some who are over 5/24). They've also been granting CLIs and other perks (lately, 5% off gas purchases) to selected groups of Amazon/Prime cardholders that they hadn't been as generous with before. My guess is that some or most of that will continue for at least a while, and it might even be in their contract with Amazon.

It's been argued that Chase isn't a great choice for Amazon customers because so many of them has been blacklisted by Chase. But Chase isn't unusual in having a blacklist - pretty much every bank does - and a number of people fall off the blacklist every year. (Part of me thinks the reason Chase's blacklist seems so large is more because of the size of the bank than anything else. Larger banks also have larger numbers of ex-clients who burned them.)

I'm sure Amazon wasn't and probably still isn't 100% happy with their partnership, but who else were they going to partner with? Synchrony and Citi have customer service issues, WF is still toxic, BofA and Barclays may not have been interested. I believe Capital One and Amex were interested, but that didn't seem to work out. Goldman Sachs didn't seem interested, for whatever reason.

Amazon is so big that I doubt they're trying to grow their customer base by offering a credit card (a la B&H Photo). It seems to be more of a service to their existing customers. For customers who don't qualify for Chase, many of them can still get the Synchrony store credit, which still has the most popular benefit of the 5% rebate.

For Chase, their partnership with Amazon gives them a large pool of customers who could eventually sign up for other services, including banking, investments and other cards. And Chase has already taken advantage of this. They enticed me to sign up for a checking account a few months ago, and I'm sure I wouldn't have done it if I wasn't an Amazon Prime cardholder.

Re: Amazon renews Prime credit card tie-up with JPMorgan Chase after flirting with American Express

805orbust — Sun, 03 Apr 2022 11:02:35 GMT

@SouthJamaica wrote

I don't know what you mean by "dd-ing" it.

@SouthJamaica "Daily Driving".

Re: Amazon renews Prime credit card tie-up with JPMorgan Chase after flirting with American Express

SouthJamaica — Sun, 03 Apr 2022 15:38:01 GMT

@805orbust wrote:
@SouthJamaica wrote
I don't know what you mean by "dd-ing" it.
@SouthJamaica "Daily Driving".

OK Thanks. Yeah, heavy usage of the card is the best way to get Chase's attention for an auto CLI.