The Amazon credit card makes sense if you shop on Amazon regularly, but it's not the right choice for everyone
Amazon offers two main credit cards through Chase: the Amazon Prime Rewards Visa Signature Card (for Prime members) and the Amazon Rewards Visa Card (for non-members). Both cards earn cash back on Amazon purchases — 5% for Prime members on Amazon.com and Whole Foods, 3% at restaurants and gas stations, 1% elsewhere. The non-member version earns 3% on Amazon and Whole Foods, 2% at restaurants and gas stations, 1% elsewhere.
Whether the card is worth it depends on three things: how much you spend on Amazon each year, whether you're already paying for Prime membership, and how you compare it to other cash-back cards you could use instead. A card that earns 5% back only helps your wallet if you actually use that 5% category enough to offset any annual fee or missed rewards elsewhere.
Key Takeaways
- The Prime version has no annual fee and earns 5% cash back on Amazon purchases, but only if you're already a Prime member paying $139 per year.
- The non-Prime version also has no annual fee but earns lower cash-back rates and makes sense only if you shop Amazon frequently but don't want a Prime membership.
- Both cards earn less cash back (1%) on most everyday purchases than competing cards that earn 2% on everything, so they work best as a second card for Amazon spending only.
- You need to compare your actual Amazon spending against the cash back you'd earn with a flat-rate card to know whether the higher Amazon rate saves you money.
How much you need to spend on Amazon for the card to pay off
The Prime card earns 5% back on Amazon purchases, but you're only ahead if that 5% beats what you'd earn with a different card. If you use a flat-rate 2% cash-back card instead, the Amazon card gains you an extra 3% on Amazon spending only. That means you break even after spending about $500 per year on Amazon — anything above that puts you ahead.
For most households, $500 per year is roughly $40 per month on Amazon. If you spend less than that, the card doesn't save you money. If you spend $2,000 per year on Amazon (about $167 per month), the 5% rate saves you $60 compared to a 2% card. The math only works if you actually use the higher rate on a category where you shop regularly.
The non-Prime card's math is worse. It earns 3% on Amazon and Whole Foods, 2% at restaurants and gas stations, 1% elsewhere. A flat-rate 2% card beats it on everything except Amazon and Whole Foods. You'd need to spend enough on those two merchants to make up the difference, which is harder to reach.
When the card makes the most sense
The Amazon Prime card works best if you meet three conditions: you're already paying for Prime membership, you spend at least $500 per year on Amazon.com, and you don't mind carrying a card that earns only 1% on non-Amazon purchases. If all three are true, the card pays for itself and then some.
The card also makes sense as a second card — one you use only for Amazon and Whole Foods, while using a flat-rate 2% card for everything else. This approach lets you capture the 5% rate without losing rewards on groceries, gas, or restaurants. Many people who optimize their rewards use multiple cards this way.
If you don't have Prime, the non-Prime Amazon card is rarely the best choice. You'd earn 3% on Amazon but only 1% on most other purchases. A 2% flat-rate card or a card that earns 3% on groceries and gas would serve you better unless Amazon is nearly all your spending.
What to watch for in the rewards structure
Both Amazon cards cap your rewards in some categories. The 5% rate on the Prime card applies only to Amazon.com and Whole Foods — not Amazon Fresh, Amazon Business, or third-party sellers using Amazon's marketplace. The 3% rate on restaurants and gas stations applies only to the first $2,500 spent per quarter, then drops to 1%. That means if you spend heavily on gas or dining out, you won't earn the advertised rate on all of it.
Cash back posts to your Amazon account as a statement credit, not as cash you can move to a bank account. That's convenient if you shop Amazon regularly, but it's less flexible than cards that let you redeem rewards however you want. You also can't combine Amazon cash back with Prime member discounts or promotional offers — the rewards are separate.
The card offers other benefits like extended warranty coverage and purchase protection, but these are standard on most premium cards and shouldn't be the reason you choose it. Focus on whether the cash-back rates match your actual spending.
How the Amazon card compares to other options
A flat-rate 2% cash-back card (like the Citi Double Cash or Wells Fargo Active Cash) earns the same rate on everything, which is simpler and often beats the Amazon card unless you spend heavily on Amazon. You don't have to track categories or worry about caps. The trade-off is that you give up the 5% rate on Amazon purchases.
A card that earns 3% on groceries and gas (like the Chase Freedom Unlimited or Capital One SavorOne) might save you more money if you spend more on those categories than on Amazon. A card that earns 5% on rotating categories (like the Chase Freedom Flex) can beat the Amazon card if you use the rotating categories, but you have to set up them each quarter.
The right card depends on where you actually spend money. If Amazon is 30% of your spending and groceries are 20%, the Amazon card probably wins. If Amazon is 5% of your spending and groceries are 30%, a groceries-focused card is better. The only way to know is to add up your spending by category for the last three months and do the math.
What happens after you open the card
Once approved, you'll receive the physical card in the mail within 7 to 10 business days. You can use the card number for online purchases when ready if you set up your account before the card arrives. Cash back appears in your Amazon account as a statement credit within a few days of the purchase posting.
You can redeem the cash back only toward Amazon purchases — you can't transfer it to a bank account or use it elsewhere. If you stop shopping on Amazon, the rewards sitting in your account stay there indefinitely, but they're not useful if you're not buying anything. Some people close the card after a few years if their spending patterns change, which is fine — there's no penalty for closing a card with no annual fee.
Frequently Asked Questions
Do I need to be a Prime member to use the card?
No. Amazon offers a non-Prime version that anyone can open. But the Prime version earns higher cash-back rates, so it's only worth opening if you already pay for Prime membership. If you don't have Prime, the non-Prime card earns less than many competing cards.
Can I use the card outside of Amazon?
Yes, but the rewards are lower. You'll earn 3% at restaurants and gas stations (capped at $2,500 per quarter), 1% everywhere else. Most flat-rate cards earn 2% on all purchases, so you're losing money on non-Amazon spending unless you're using this as a second card for Amazon only.
What if I have a balance I can't pay off right away?
The card charges interest on unpaid balances, just like any credit card. The interest rate varies based on your credit score and current market rates. If you carry a balance, the interest charges will quickly erase any cash-back rewards you earn. Only use the card if you can pay the full balance each month.
Does the card have an annual fee?
No, neither the Prime nor non-Prime version charges an annual fee. That makes it low-risk to open if you think you might use it, since you can close it later without penalty. But a card with no fee is only valuable if the rewards actually save you money.
How does this card affect my credit score?
Opening a new card temporarily lowers your score by a few points because of the hard inquiry and the new account. Over time, the card can help your score if you keep the balance low and make on-time payments, because it adds to your available credit and payment history. The impact depends on your overall credit profile.