The Amazon credit cards, offered in partnership with major financial institutions like Chase and Synchrony Bank, aim to reward shoppers for their purchases. But are they the right fit for your spending habits? Let's break it down.
What Are the Amazon Credit Card Options?
Amazon offers a few different credit card options tailored for both Prime and non-Prime members. Here's what you need to know.
1. Amazon Prime Visa
This card is issued by Chase and is exclusively available to Amazon Prime members.
- Key Benefits:
- 5% cash back at Amazon.com, Amazon Fresh, Whole Foods Market, and Chase Travel.
- 10% or more back on select rotating categories at Amazon.com.
- 2% cash back at restaurants, gas stations, and on transit expenses.
- Annual Fee: $0 (But you will need an active Amazon Prime membership at $139/year).
- Other perks: $100 Amazon gift card when approved, no foreign transaction fees, and travel-related benefits like baggage delay insurance.
2. Amazon Visa
This card is a go-to choice for non-Prime members.
- Key Benefits:
- 3% cash back at Amazon, Amazon Fresh, and Whole Foods Market.
- 2% cash back at restaurants, gas stations, and on local transit.
- Annual Fee: None.
- Welcome offer: $50 Amazon gift card upon approval.
3. Amazon Prime Store Card
The Prime Store Card, issued by Synchrony Bank, is ideal for those who shop almost exclusively on Amazon.
- Key Benefits:
- 5% cash back on Amazon purchases.
- Access to promotional financing options.
- Annual Fee: None for cardholders, but requires a Prime membership.
4. Amazon Store Card
This card is the simplest option with limited benefits.
- Key Benefits:
- Offers promotional financing but no rewards.
- Annual Fee: None.
Photo by Marcial Comeron
Who Benefits Most From These Cards?
Prime Shoppers
If Amazon or Whole Foods is your go-to for shopping, the Amazon Prime Visa is hard to beat. With 5% cash back and no annual card fee (Prime membership is required), you’ll save significantly over time.
Example Scenario: Spending $500/month at Amazon earns $300/year in rewards. That’s more than double the cost of Prime membership.
Frequent Travelers
The Amazon Prime Visa includes travel perks like baggage insurance and no foreign transaction fees, making it a handy companion for globetrotters.
Occasional Amazon Users
Non-Prime members or less frequent Amazon shoppers might find the standard Amazon Visa sufficient. Its 3% cash back rate is still solid and doesn’t require a membership fee.
When the Amazon Credit Card May Not Be Worth It
1. Limited Usage Outside Amazon
While the cards allow for cash back in categories like gas, dining, and transit, the best rewards are heavily tied to Amazon spending. If your Amazon purchases make up only a small part of your shopping, other general rewards cards may suit you better.
2. Alternative Cash Back Cards
Some cards, like the Wells Fargo Active Cash Card (2% cash back on all purchases) or the Blue Cash Everyday Card (3% back at online U.S. retailers), offer comparable or better versatility without being tied to Amazon.
3. High Annual Spending on Non-Grocery Transactions
If your top expenditures include categories like travel, dining, or gift cards, cards such as the Chase Sapphire Preferred or American Express Gold Card might provide greater overall rewards.
4. Prime Membership Factor
For those who don't currently pay for Amazon Prime, the requirement can feel like a hidden fee, especially if Prime benefits aren’t fully utilized.
Pros and Cons Breakdown
Pros:
- Generous cash back on Amazon and Whole Foods.
- No annual fee (excluding Prime membership cost).
- Incentive gift cards on signup.
- Travel perks with the Prime Visa option.
Cons:
- Best rewards limited to Prime members.
- Not ideal for non-Amazon shoppers.
- Rewards can’t be redeemed for direct cash refunds; they go toward statement credits or other purchases.
How to Decide if It’s Right for You?
Ask yourself these key questions:
- How often do I shop on Amazon or at Whole Foods?
- If regularly, the Prime Visa is a fantastic option with high rewards.
- Do I already pay for Prime membership?
- If yes, the 5% back is a no-brainer.
- Do I want a versatile card for various purchases?
- Compare Amazon Visa with other cash-back cards in broader categories.
- Is credit utilization important to me?
- The card's promotional offers may help spread out larger purchases interest-free but require careful management to avoid deferred interest charges.
Final Verdict: Is the Amazon Credit Card Worth It?
For frequent Amazon shoppers, the Amazon Prime Visa card practically pays for itself. With 5%-10% cash back and no added fees beyond a Prime subscription, the value it offers aligns directly with the habits of avid Amazon users. However, if you rarely shop on Amazon or don’t have a Prime membership, there are better-suited credit cards for everyday rewards.