Saturday, June 13, 2009

Amazon Virtual Credit Card

For decades, stores have tried to create customer loyalty by offering proprietary credit cards. Now, further evidence that web retailing is becoming more like traditional retailing, but with a twist, Amazon.com has introduced a proprietary credit “card.”

Not actually a card, but a credit account administered by the Citi Commerce Solutions division of Citibank in conjunction with Amazon.com Financial Services Inc., Amazon will offer a line of credit to customers who don’t have credit cards or who want a proprietary credit account with Amazon.

To launch the card, Amazon is giving a three-month, interest-free grace period on orders of more than $200. The finance offer does not apply to purchases made from the Amazon Marketplace, auctions or Z shops, or at the Circuit City portion of Amazon. The offer also cannot be used for gift certificate purchases and cell phone deposits. The interest rate on the card is 22.9%.

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