US Bank announces changes to rebate calculations for Amazon
Effective July 1, 2023, rebate calculations for Amazon will be adjusted to reflect a 19% reduction.
What does this mean for purchasing?
Effective July 1, 2023, the rebate/incentive share calculations with Amazon will be reduced by 19%. Amazon is the only vendor impacted by this change. All other spend volume will continue to be treated in accordance with the rebate/incentive sharing calculations set forth in exhibit B of the statewide contract.
This change will impact the non-standard volume incentive, prompt payment incentive, and national annual volume incentive that may be earned under statewide contract #00719.
Why is this change happening?
U.S. Bank, our Purchase Card (p-card) provider, operates on the Visa® network. This network works closely with card-accepting merchants, vendors, and suppliers. Visa periodically finds it necessary to negotiate reduced interchange rates with merchants.
On January 1, 2023, Visa and Amazon negotiated their already discounted interchange by an additional 19%.
Due to this significant decrease, U.S. Bank is invoking its right under the Section 3.3 INCENTIVE SHARE ADJUSTMENT of the NASPO Cooperative Purchasing Master Agreement - #00719 to make proportionate changes to the rebate/incentive share opportunities as set forth in the NASPO Cooperative Purchasing Master Agreement with Amazon.
Contact
If you have any questions about the changes, please contact Michael Lix, DES Purchase Card Program Manager.
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