AMZN Amazon.com Inc

By Robin Sidel 

Amazon.com Inc. is trying to ring up more sales with a new credit card aimed at its most loyal customers.

The online retailer is introducing a new card for Prime customers offering 5% back on all Amazon.com purchases. The card, issued by J.P. Morgan Chase & Co. and branded with the Visa Inc. logo, doesn't have an annual fee or foreign-transaction fees.

The card represents the latest in many offers that are increasingly popular with consumers because they provide cash or discounts on future purchases. "We are adding even more value to Prime by offering rewards on Amazon and everywhere else you shop," Max Bardon, Amazon vice president said in a press release.

Amazon doesn't disclose how many customers are members of its Prime service, which typically costs $99 a year in exchange for free two-day shipping on eligible purchases, video streaming and other features.

Amazon already offers a Chase-Visa rewards card. Existing cardholders who have Prime membership will be upgraded to the new card. In addition to the 5% cash back on Amazon.com purchases, cardholders will get 2% back at restaurants, gas stations and drugstores and 1% back on all other purchases.

The Amazon rewards are deposited as points in a customer's account and can be redeemed for Amazon items. Customers can also choose to receive a credit against items purchased.

Chase and other issuers previously have offered as much as 10% cash back on Amazon.com purchases in limited promotions. Amazon said it is also eliminating foreign-transaction fees on its basic rewards card.

Amazon also offers so-called store cards that can only be used on its products.

Write to Robin Sidel at robin.sidel@wsj.com

(END) Dow Jones Newswires

January 11, 2017 07:14 ET (12:14 GMT)

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