The Amazon Credit Card Has No Annual Fee

The Amazon Prime Rewards Visa Signature Card and the Amazon Prime Rewards Visa Card (the non-Signature version) both charge zero dollars per year to hold them. There is no annual fee, no monthly fee, and no hidden charges just for having the card open. You only pay interest if you carry a balance month to month, and you only pay fees if you miss a payment or use certain features like cash advances.

This is one of the clearest things about these cards: Amazon and Chase made the decision to not charge an annual membership fee to use them. That decision does not change based on your credit score, how much you spend, or how long you have held the card. The card costs nothing to own.

Key Takeaways

  • Both Amazon Prime Rewards cards (Signature and standard) have no annual fee, ever.
  • You pay interest only if you carry a balance past your due date, not for using the card itself.
  • Late payments, cash advances, and foreign transactions may trigger fees, but regular purchases and on-time payments do not.
  • The card's rewards rate depends on where you shop, so the value you get varies by how you use it.

What Fees You Might Actually Pay

Even though there is no annual fee, other charges can show up on your statement. A late payment fee applies if you miss your due date — the amount varies but typically ranges from $25 to $35 for a first offense. A cash advance fee is charged if you withdraw cash using the card at an ATM, usually 3% of the amount withdrawn with a minimum of $5. Foreign transaction fees of 3% apply if you use the card outside the United States.

None of these are annual fees. They only appear if you do the specific action that triggers them. If you pay your bill on time and use the card for regular purchases in the US, you will see no fees at all beyond interest on any unpaid balance.

Interest Charges Are Not the Same as Annual Fees

The card has a variable interest rate, meaning the percentage you pay on a balance changes over time based on market conditions and your creditworthiness. This rate is called the Annual Percentage Rate (APR), but it is not a fee — it is the cost of borrowing money. If you pay your full statement balance by the due date each month, you pay zero interest.

Many people confuse APR with an annual fee because both are yearly costs. The difference: an annual fee is a flat charge just for holding the card, while APR is interest you only owe if you carry a balance. The Amazon card has the first but not the second.

Why Amazon Offers No Annual Fee

Amazon and Chase make money from this card through interchange fees — a small percentage of every purchase you make that the merchant pays to the card issuer. The more you use the card, the more interchange revenue they collect. Charging an annual fee would discourage some people from using the card at all, so they chose not to.

This is also why the card offers rewards: the rewards program is designed to encourage you to use it more often. The rewards cost Amazon and Chase money, but they expect to make it back through higher purchase volume and the interchange fees that come with it. An annual fee would work against that goal.

How the Rewards Rate Affects Your Real Value

The card earns 5% back on Amazon.com and Whole Foods purchases (with a $150 cap per quarter, then 1% after), 2% at restaurants, gas stations, and drugstores, and 1% on everything else. These rates are what determine whether the card is worth using — not the annual fee, since there is none.

If you rarely shop on Amazon or at Whole Foods, the card's value drops significantly because you will earn mostly 1% rewards on other purchases. A different card with a higher flat-rate reward might serve you better. The no-annual-fee structure means you can hold this card without penalty while using a different one for everyday spending, but that flexibility does not automatically make it the best choice for your situation.

Comparing to Other Amazon Cards

Amazon also offers the Amazon Business Prime Rewards Visa Card, which also has no annual fee. It earns rewards at different rates than the consumer version and is designed for business purchases, but the annual fee rule is the same: zero.

If you are comparing the Amazon card to other rewards cards from other issuers, check whether those cards charge annual fees. Many do — some charge $95, $150, or more per year. The Amazon card's lack of an annual fee is a real advantage if the rewards rates work for your spending, but it is not an advantage if you would earn better rewards elsewhere and end up paying an annual fee for that privilege.

What Happens If You Close the Card

Closing an Amazon credit card does not trigger any fee or penalty. You can open it, use it for a while, and close it whenever you want without owing anything beyond any unpaid balance on the account. Some cards charge a fee for closing early or require you to hold them for a minimum time — the Amazon card does not.

This means you can test whether the card works for your spending habits without financial risk. If you find you are not using it or the rewards do not match your purchases, you can close it and move on.

Frequently Asked Questions

Do I have to be an Amazon Prime member to use the card?

No. The card works whether or not you have a Prime membership. However, the 5% rewards on Amazon.com purchases are only available to Prime members. Non-Prime members earn 3% on Amazon.com and 2% at Whole Foods instead. The card itself has no annual fee either way.

Will the annual fee change if I do not use the card?

No. The card has no annual fee regardless of how much or how little you use it. You can hold it open without making any purchases and pay nothing. Some cards charge an annual fee even if you never swipe them — this one does not.

What if I miss a payment — do I owe an annual fee on top of the late fee?

No. A missed payment triggers a late fee (typically $25 to $35) and interest on your balance, but it does not create an annual fee. The card still has no annual fee; you just owe the late fee as a separate charge.

Can I downgrade to a different Amazon card to avoid fees?

Both Amazon cards have no annual fee, so downgrading would not save you money on fees. You might downgrade if the rewards rates on one card match your spending better than the other, but the fee structure is identical between them.

Is the annual fee waived for the first year?

There is no annual fee to waive. Some cards offer a year free and then charge a fee starting in year two — the Amazon card does not follow this pattern. It has no annual fee from the moment you open it and for as long as you hold it.