Amazon rewards Prime members for shopping Whole Foods

Amazon Prime Rewards Visa credit card holders are in-store for some additional perks.

Starting Feb. 20, eligible Prime members can earn 5% cash back on purchases made at Whole Foods, the organic grocery store chain Amazon purchased for nearly US$14 billion last summer. This newest bonus is in addition to the 5% back they receive on all Amazon.com purchases, 2% back at restaurants, gas stations and drugstores, and 1% back on all other purchases.

Non Prime members will earn 3% back on Whole Foods purchases when using the Amazon no-fee credit card. They also receive 3% back on Amazon.com purchases and are rewarded based on purchases everywhere else they shop.

This is one in a string of moves made by Amazon-Whole Foods to lure shoppers away from competitors. Earlier this month the company announced it would offer two-hour delivery to its Prime members.

Amazon also cut prices on bananas, yogurt and other items, and began selling Kindle e-readers in some of its 470 stores.