Stamps1962, Greetings:
Thank you for a worthwhile post.
I can understand why
Amazon would openly push you towards using a gift card balance; after all, they carry that as a liability on their balance sheet, and would want to clear it off of their balance sheet as fast as possible.
Why they would resort to snipping five bucks at a time is less obvious, except insofar as it suggests that people prefer to hold onto their gift cards, and this is
Amazon's strategy for defeating that customer preference.
I do not know who administers the
Amazon gift card program - it could well be managed by an outside contractor - but I would suggest that credit card processing fees are probably higher than gift card processing costs, so
Amazon will show a better year-end result if they can divert more of their customers' purchasing dollars to gift cards from credit cards.
Cheers,
/s/ ikeyPikey