Amazon Prime Store Card switching to points instead of cashback!

[Moneyklutz]

Got an email today spelling out changes on our Amazon Prime store card.

"...Starting on or after October 31, 2017, the 5% back* benefit with your Amazon Prime Store Card will be earned as a rewards point balance, rather than being applied to your account automatically as a statement credit."

It seems to me the only real change is that it will allow me to redeem the accrued points on a purchase in addition to the normal way of waiting for the statement cut and applying it to the balance.

Anyone else get the email yet and interpret the changes differently?  

[securingourfuture]

I got it today too.

[Anonymous]

Just got it, what does that mean? Is 5 percent cash back going away? I hope not

[UpperNwGuy]

Be very afraid.  Unlike cash, points can be devalued.

[CountryLivin]

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@UpperNwGuy wrote:

Be very afraid.  Unlike cash, points can be devalued.

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Yes, they can, but you will have the choice of using points to make a purchase or using the points for a statement credit. There's really no changes to the program, other then now we will have a choice of what to do with our points...instead of it automatically getting statement credit.

[Anonymous]

hmm i didnt get that email but booo!

[longtimelurker]

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@CountryLivin wrote:

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@UpperNwGuy wrote:

Be very afraid.  Unlike cash, points can be devalued.

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Yes, they can, but you will have the choice of using points to make a purchase or using the points for a statement credit. There's really no changes to the program, other then now we will have a choice of what to do with our points...instead of it automatically getting statement credit.

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For now, but I'm with UpperNwGuy here, there is no real reason to switch to points except to allow you the possibility of devaluation.   The nice thing is (from an issuers viewpoint) that it is much less obvious.  If I tell you that instead of 5% you are going to get 4%, you might get annoyed and look for alternatives.   But points make it somewhat easier to hide, it now costs 5000 points for something that used to cost 4500, or you can redeem your balance for slightly less....

This happened with the Penfed Platinum rewards, still earns 5points on gas, 3 points at supermarkets, but they have gone from 1c per point to just over 0.8c per point.

[Loquat]

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@longtimelurker wrote:

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@CountryLivin wrote:

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@UpperNwGuy wrote:

Be very afraid.  Unlike cash, points can be devalued.

---

Yes, they can, but you will have the choice of using points to make a purchase or using the points for a statement credit. There's really no changes to the program, other then now we will have a choice of what to do with our points...instead of it automatically getting statement credit.

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For now, but I'm with UpperNwGuy here, there is no real reason to switch to points except to allow you the possibility of devaluation.   The nice thing is (from an issuers viewpoint) that it is much less obvious.  If I tell you that instead of 5% you are going to get 4%, you might get annoyed and look for alternatives.   But points make it somewhat easier to hide, it now costs 5000 points for something that used to cost 4500, or you can redeem your balance for slightly less....

This happened with the Penfed Platinum rewards, still earns 5points on gas, 3 points at supermarkets, but they have gone from 1c per point to just over 0.8c per point.

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+1   ^^  This.  My thoughts exactly. 

[Anonymous]

You can blame me for this one -- every time I apply for something, guaranteed I will bring down all the good stuff, lol.  I also applied for NFCU the day before they slammed the door shut, haha.

I can't wait to get the Chase CSR and a month later I bet they'll give you free funny postcards in the mail instead of URs!

[UpperNwGuy]

I suspect that this change might relate to Amazon's recent acquisition of Whole Foods and their plans to expand their store card to include Whole Foods purchases.