Amazon Barclaycard: A Detailed Review of Its True Value and Hidden Costs
The Amazon Barclaycard tempts shoppers with a £20 welcome gift and the promise of earning rewards on every purchase. As a co-branded card from one of the UK’s biggest retailers, backed by Barclays and with no annual fee, it certainly seems like a straightforward choice.
But how valuable are its ‘Amazon Reward points’ in reality? In a competitive market of cashback cards, does this one actually deliver, or is it simply a clever way to keep you tied to the Amazon ecosystem?
We’ve done the maths, and the results might surprise you. This detailed review breaks down every aspect of the card, from the true cashback value of its points to the significant drawbacks you must understand before you apply. By the end, you’ll know for certain whether the Amazon Barclaycard deserves a place in your wallet.
How the Amazon Barclaycard Rewards Really Work
The entire appeal of this card hinges on its rewards programme. It earns you Amazon Reward points on your spending, which can then be redeemed on Amazon.co.uk. The conversion rate is simple: 1,000 points gets you a £5 credit. This means each individual point is worth 0.5p.
However, the rate at which you earn these points differs significantly depending on whether you are an Amazon Prime member. Let’s break down the actual cashback percentage you receive.
For Amazon Prime Members
- Spending at Amazon.co.uk: You earn 1.5 points for every £2 spent. This is equivalent to a 0.375% cashback rate.
- Spending everywhere else: You earn 0.5 points for every £2 spent. This is equivalent to a tiny 0.125% cashback rate.
The Maths: For every £100 spent at Amazon, you earn 75 points (1.5 points x 50). These 75 points are worth 37.5p (75 x 0.5p), which is 0.375% of your £100 spend.
For Non-Prime Members
- Spending at Amazon.co.uk: You earn 0.75 points for every £2 spent. This equates to a 0.1875% cashback rate.
- Spending everywhere else: You earn 0.5 points for every £2 spent, the same as Prime members, for a 0.125% cashback rate.
As you can see, the rewards are minimal, even for Prime members shopping on Amazon. Compared to other free rewards cards on the market, these rates are exceptionally low.
The Other Key Benefits
Beyond the points system, the card has a couple of other straightforward perks.
The £20 Welcome Bonus
New cardholders receive a £20 Amazon gift card after being approved and spending £200 on the card within the first 60 days. This is a relatively low spending threshold that can be met with a large weekly shop or a couple of tanks of fuel. It’s a solid, easy-to-achieve welcome offer that effectively gives you 10% back on that initial spending.
Backed by a Major UK Bank
This isn’t just a store card; it’s a fully-fledged credit card issued by Barclaycard, part of Barclays, one of the UK’s largest high-street banks. This provides a level of security and trust, including Financial Services Compensation Scheme (FSCS) protection on any credit balances.
You also get access to the Barclaycard app and their established fraud protection systems. As a Visa card, it’s accepted almost everywhere, unlike some competitor cards.
Fees and Charges at a Glance
The Amazon Barclaycard has a high representative APR, making it essential that you pay your balance in full each month to avoid interest charges that would wipe out any rewards earned.
- Representative APR: 28.9% (variable)
- Annual Fee: £0
- Introductory Purchase Rate: 0% for 6 months
- Introductory Balance Transfer Rate: 0% for 3 months (on transfers in the first 60 days)
- Balance Transfer Fee: 3.49% of the amount transferred
- Foreign Transaction Fee: 2.99% of the transaction amount
- Late Payment Fee: £12
The Major Drawbacks You Can’t Ignore
While the card is simple, it comes with several significant flaws that make it a poor choice for many consumers.
1. The Extremely Low Cashback Rate
Let’s be direct: the rewards are poor. A top rate of 0.375% for Prime members is easily beaten by numerous free cards on the market that offer 0.5% or even 1% cashback on all spending. The only reason to accept such a low rate is for the sheer convenience of having points automatically linked to your Amazon account. For anyone looking to maximise their rewards, this card is a major disappointment.
2. The Misleading Balance Transfer Offer
The card advertises a 0% interest period on balance transfers, but this is one of its biggest pitfalls. You get just three months interest-free, yet you’re charged a hefty 3.49% transfer fee. This is an incredibly poor deal. You are paying a significant fee for a promotional period that is too short to pay off any meaningful debt.
Specialist balance transfer cards from other providers offer over 20 months for a similar fee. You should not get this card for transferring a balance.
3. It’s a Terrible Card for Travel
For a card linked to a global retailer like Amazon, it is ironic that it is completely unsuitable for use abroad. The 2.99% foreign transaction fee will be added to every purchase you make in a different currency. This fee will cost you far more than the paltry 0.125% in rewards you would earn. When travelling, it’s best to leave this card at home and use a specialist travel credit card with no foreign transaction fees instead.
4. The High Income Requirement
Barclaycard requires applicants to have a minimum annual income of £20,000. This is a surprisingly high threshold for what is essentially a basic rewards card with a very low earning rate. Many people who might be attracted to a simple Amazon card could be excluded by this strict requirement.
Who is Eligible for the Amazon Barclaycard?
Because this is a standard credit card, you will need to have a good credit history to be accepted. The main eligibility criteria are as follows.
You must:
- Be at least 18 years old.
- Be a permanent UK resident.
- Have a personal annual income of at least £20,000.
- Have a good credit history with a record of making payments on time.
- Not have been declared bankrupt in the past six years.
Barclaycard offers a ‘soft search’ eligibility checker, which is the best way to see if you’re likely to be approved without leaving a mark on your credit file that other lenders can see.
How to Apply for the Amazon Barclaycard
Secure your £20 gift card safely by following these steps:
- Check Eligibility: Use the soft search tool on the Barclaycard website to see your approval chances risk-free.
- Confirm Income: Ensure you meet the strict £20,000 annual income requirement before applying.
- Complete Application: Submit the full form. A hard credit search will now be recorded.
- Claim the Bonus: Spend £200 in the first 60 days to automatically trigger your £20 Amazon gift card.
How Does It Compare to the Alternatives?
When measured against other popular rewards cards in the UK, the Amazon Barclaycard’s weaknesses become even more apparent.
Alternative 1: General Cashback Cards (Visa or Mastercard)
Several providers offer simple cashback cards that use the Visa or Mastercard network. Many offer a flat 0.5% cashback on all spending, with some premium or fintech options offering up to 1%. Even a standard 0.5% rate is higher than what the Amazon card offers on its primary use case (0.375% at Amazon) and four times better than its rate for general spending (0.125%).
Verdict: Most general cashback cards offer better value and greater flexibility, as the cash can be used anywhere, not just on Amazon.
Alternative 2: American Express Cashback Cards
American Express typically offers the most generous cashback rates in the UK. Their free Platinum Cashback Everyday card, for example, offers a much higher rate of return on all spending after an introductory promotional period. While Amex isn’t accepted in as many places as Visa, it is accepted at Amazon.co.uk.
Verdict: For anyone serious about earning cashback, an Amex card is vastly superior for any spending that can be put on it, including at Amazon.
Our Final Verdict: Is This Card Right for You?
The Amazon Barclaycard is a card of convenience, not value. Its primary function is to offer a simple, integrated rewards system for die-hard Amazon Prime shoppers who value simplicity above all else. The £20 welcome bonus is a nice initial perk, but it doesn’t compensate for the card’s long-term lack of earning potential.
Its cashback rates are exceptionally low, and its other features, like balance transfers and foreign spending, are best avoided entirely.
This card might be for you if:
- You are a loyal Amazon Prime member with an income over £20,000.
- You want a single, simple Visa card and are not interested in maximising rewards.
- You value the convenience of having points automatically available on your Amazon account.
- You are certain you will pay your balance in full every single month.
This card is NOT for you if:
- You want to get the best possible cashback rate on your spending.
- You need a card for travelling abroad or making purchases in other currencies.
- You need to transfer a balance from another credit card.
- You do not have an Amazon Prime membership (the reward rate is practically non-existent).
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