Amazon Chooses Underdog for Credit Card Program

We all knew this was bound to happen sooner or later ... Amazon.com is getting into the credit card business with their own version of a branded affinity card.

They have selected NextCard to handle the business. This move surprised some industry analysts because the online retailer did not select one of the more mainstream vendors like First USA or MBNA America, two of the heaviest players in the affinity credit card arena.

Currently, Amazon has more than 13 million customers, and plans to roll out the credit card program early next year. Because of the huge number of customers, it is estimated that NextCard will remit to Amazon $150 million in fees over the next five years based on new account sign-ups.

NextCard has about 134,000 accounts, so if just one percent of Amazon's customers open new accounts, NextCard will have doubled its customer base. Now that's eCommerce!

You may like these other stories...

Here's a CPA who truly walks the walk. On March 15, Frank Ryan, CPA, departed San Diego, California, with plans to be in Ocean City, Maryland, by July 2 to teach a course at the Maryland Association of CPAs’ (MACPA...
When Theodore J. Flynn first joined the Massachusetts Society of CPAs (MSCPA) in 1970, it was a different world and a different profession.  The "Big Eight" were still headquartered in Boston. Vietnam War...
Accountant Rickey Charles Goodrich had it a little too good. Many bean counters would kill to serve as financial guru to the likes of Pearl Jam. Goodrich was hired in 2005, and the following year, he became the CFO of Curtis...

Already a member? log in here.

Upcoming CPE Webinars

Aug 26
This webcast will include discussions of recently issued, commonly-applicable Accounting Standards Updates for non-public, non-governmental entities.
Aug 28
Excel spreadsheets are often akin to the American Wild West, where users can input anything they want into any worksheet cell. Excel's Data Validation feature allows you to restrict user inputs to selected choices, but there are many nuances to the feature that often trip users up.
Sep 9
In this session we'll discuss the types of technologies and their uses in a small accounting firm office.
Sep 11
This webcast will include discussions of commonly-applicable Clarified Auditing Standards for audits of non-public, non-governmental entities.