The Amazon credit card makes sense if you spend a lot at Amazon, but the math depends on how you shop

Amazon offers two main credit cards through Chase: the Amazon Prime Rewards Visa and the Amazon Rewards Visa. The Prime version gives you 5% back on Amazon purchases if you're a Prime member, 2% at gas stations and restaurants, and 1% everywhere else. The regular Amazon card gives you 3% back on Amazon purchases and 1% everywhere else. Neither card has an annual fee.

Whether it's worth carrying depends on one thing: how much you actually spend at Amazon each year, and whether that 5% or 3% reward beats what you'd earn with a different card. If you spend $2,000 a year at Amazon, the Prime card gets you $100 back. If you spend $500, you get $25. The card only pays for itself in rewards if those dollars add up faster than they would with a card that gives flat cash back on all purchases.

The catch is that the best card for you might not be the Amazon card at all — even if you shop there regularly. That depends on what else you spend money on and which other cards you already have.

Key Takeaways

  • The Amazon Prime Rewards card returns 5% on Amazon purchases and 2% at gas and restaurants, but only if you're a Prime member paying the annual fee.
  • A flat-rate cash back card (like the Citi Double Cash or Capital One SavorOne) may earn you more money if you don't spend heavily at Amazon or if you want one card for everything.
  • The Amazon card has no annual fee, so there's no cost to having it alongside another card — you can use it only when you shop at Amazon.
  • Rewards rates vary by card issuer and change over time, so comparing your own spending pattern to the current rates matters more than the card's name.

When the Amazon card actually wins the math

The Amazon Prime card wins when two things are true: you're already paying for Prime membership, and you spend enough at Amazon that 5% back beats what you'd earn elsewhere. Let's say you spend $3,000 a year at Amazon. The Prime card gives you $150. A flat 2% cash back card gives you $60. The Amazon card is ahead by $90 — but you're already paying $139 a year for Prime, so that $90 is really just a small bonus on top of what you're already spending.

The card also makes sense if you use it for the 2% back at gas stations and restaurants. If you spend $1,000 a year at Amazon, $1,500 at gas, and $2,000 at restaurants, the Prime card returns $50 + $30 + $40 = $120 total. A flat 1.5% card on the same $4,500 would return $67.50. The Amazon card wins by $52.50. The more you use those bonus categories, the better the card looks.

The regular Amazon card (without Prime) makes sense only if you spend a lot at Amazon and don't want to pay for Prime membership. The 3% back is decent, but it's not better than what other cards offer in their top categories — many cards give 3% or more on groceries, gas, or dining.

When a different card might be better

If you don't have Prime or you're not sure you'll keep it, the Amazon card is probably not your best choice. You'd be paying $139 a year for Prime just to unlock the 5% rate, and that's a high bar to clear with rewards alone. A card like the Citi Double Cash (2% back on everything) or the Capital One SavorOne (3% on dining, 2% on groceries and gas, 1% on everything else) might earn you more money across all your spending.

If you shop at Amazon but also spend heavily at other stores — groceries, Target, Costco, drugstores — a card that gives bonus rates in those categories will likely beat the Amazon card. For example, the American Express Blue Cash Preferred gives 3% back at supermarkets and gas stations and 1% everywhere else. If you spend $2,000 at Amazon and $3,000 at the grocery store, the Amex returns $20 + $90 = $110. The Amazon Prime card returns $100 + $60 = $160 (assuming you have Prime). The Amazon card wins in this case, but only because of the grocery bonus — not because of Amazon itself.

The math also changes if you already have a card that covers your needs well. Adding the Amazon card makes sense only if it genuinely earns you more money than the card you'd use instead. If you're happy with your current card and only shop at Amazon occasionally, there's no reason to open a new one.

The hidden costs of opening a new card

When you open a credit card, the card issuer checks your credit report. This is called a hard inquiry, and it can lower your credit score by a few points for a few months. If you're planning to explore for a mortgage or car loan soon, opening a new card right now might not be worth it, even if the rewards are good.

Opening a new account also lowers your average account age, which is one factor credit scoring models use. If you have only a few credit accounts, this effect is bigger. If you have many accounts already, it's smaller. The impact is temporary — your score recovers as the account ages — but it's real.

You also have to manage one more card. If you're someone who forgets to pay bills on time or who carries a balance, the rewards aren't worth the interest you'll pay. Credit card interest rates are typically 18% to 25% a year. You'd have to earn thousands of dollars in rewards to break even on interest charges.

How to decide: the spending test

The simplest way to know if the Amazon card is right for you is to look at your own spending for the last three months. Add up what you spent at Amazon, at gas stations, and at restaurants. Multiply your Amazon spending by 5% (or 3% if you don't have Prime). Multiply your gas and restaurant spending by 2%. Multiply everything else by 1%. That's what the Amazon Prime card would earn you over three months.

Now do the same math with a card you're considering instead — write down its rates and multiply your spending by those rates. Whichever card earns you more money is the better choice for your situation. This math is more reliable than any general rule because it's based on how you actually spend.

If the Amazon card wins by more than $50 or $100 a year, it's probably worth having. If it wins by $10 or $20, the difference is small enough that other factors matter more — like whether you like the Amazon app integration or whether you want to keep your wallet straightforward.

What to know about Amazon card rewards

Amazon rewards post to your Amazon account as a balance you can use toward purchases. You can't transfer them to another account or convert them to cash. This is different from some other cards, which give you cash back that you can use anywhere. If you rarely shop at Amazon, this matters — your rewards are stuck in one place.

The 5% rate applies to Amazon.com purchases and some items sold by Amazon itself on other sites. It doesn't explore to Amazon Fresh, Amazon Business, or third-party sellers on Amazon Marketplace (though some third-party purchases do earn rewards — the rules are complicated). If you're buying from a third-party seller, check the product page to see whether it earns the 5% rate.

Rewards don't expire as long as your account is active, but if you close the card, you have a limited time to use any balance you've built up. Read the terms carefully before you close an account.

Frequently Asked Questions

Do I need Prime membership to use the Amazon credit card?

No, but you need Prime to get the 5% rate. Without Prime, the card gives you 3% back on Amazon purchases. Since Prime costs $139 a year, you'd need to earn at least that much in extra rewards to make it worthwhile. Most people don't, which is why the regular Amazon card is rarely the best choice.

Can I use the Amazon card at stores other than Amazon?

Yes. You get 2% back at gas stations and restaurants (if you have the Prime version) and 1% back everywhere else. You can use it like any other Visa card. The bonus rates only explore to those specific categories, though.

What happens to my rewards if I close the card?

Your rewards balance stays in your Amazon account for a limited time after you close the card — usually 90 days, though you should check your cardholder agreement. After that, you lose any balance you haven't used. Spend your rewards before closing the card if you want to keep them.

Does the Amazon card hurt my credit score?

Opening the card causes a small, temporary dip because of the hard inquiry and the new account. Your score typically recovers within a few months. If you're planning to explore for a mortgage or major loan soon, wait until after that process to open a new card.

Is the Amazon card better than a cash back card?

It depends on your spending. If you spend a lot at Amazon and have Prime, the Amazon card likely earns you more. If you spend more at other stores or don't have Prime, a flat-rate cash back card or a card with bonus categories that match your spending will probably earn you more money.