Because once they have that relationship, they can leverage it to give them savings elsewhere.
This is advantageous for Amazon, as otherwise they are subject to both their own procedures and those of the issuer.
Then Amazon loses its money.
Also note that Amazon is only giving you a gift card, which you have to use on Amazon.If shopping on Amazon is inconvenient, then perhaps that outweighs the advantage of the card.Amazon would rather take the entire risk than share it with can you use gift cards online river island someone else who charges for the privilege.This is Amazon's approach in general.Fees for processing credit cards can be as much as 5, although 1-2 is more typical.If you prefer having the products to the money, then yes.This helps them better determine if that sudden shipment of a 2000 camera to Thailand is a real transaction (you're a photographer who regularly vacations in Thailand) or a fake (you've never been to Thailand in your life and your phone is camera enough).Sell separately from Amazon, but the inventory is stored at Amazon and Amazon ships.And you are likely to give them more money with the Amazon card than they would otherwise receive.This is just the same thing for buyers.If the price is the same on Amazon and at Barnes Noble, you can actually save money with the Amazon card.
And they didn't lose the 50 you gained.
Advertise Amazon products on their own web sites.
Amazon certainly gets something out of the relationship.
From their perspective, doing so in such a way that you come out 50 ahead (assuming you would have made the same purchases without this is a win-win.They're over 160 ahead.Amazon gives more "cash back" in the form of gift card balance for an Amazon purchase.A steady profit of 100 or 200 a year is better than a one time profit of 500 followed by a loss of 1000 followed by nothing for ten years.They generate more revenue in the short term, but then they overspend and declare bankruptcy.That additional information may itself be worth enough to make the relationship profitable for Amazon.But you get products in return.In return for the issuer handling the mechanics of billing.It's safer to make the smaller short term profits with responsible customers who will continue to be customers for the long term.You give them money.