What the Amazon Credit Card Actually Offers
The Amazon credit card comes in two versions: the Amazon Prime Rewards Visa Signature Card and the Amazon Rewards Visa Card (without Prime membership required). Both cards earn cash back on purchases, but the rewards structure and annual fee differ between them.
The Prime version earns 5% cash back at Amazon.com and Whole Foods Market, 2% at gas stations, restaurants, and drugstores, and 1% on everything else — but only if you have an active Prime membership. There is no annual fee. The standard Amazon Rewards card earns 3% at Amazon and Whole Foods, 2% at gas stations and restaurants, and 1% elsewhere. It also has no annual fee.
Both cards are issued by Chase. The cash back appears as a statement credit or can be transferred to your Amazon account as a balance. You can also redeem it for gift cards, travel, or other options through Chase's rewards portal, though the value may differ depending on what you choose.
Key Takeaways
- The Amazon Prime Rewards card pays 5% back at Amazon and Whole Foods only if you hold an active Prime membership; without it, you earn 3% like the standard card.
- Neither card charges an annual fee, so the cost of carrying it is zero unless you carry a balance and pay interest.
- The highest rewards rates (5% and 3%) are limited to Amazon, Whole Foods, gas, restaurants, and drugstores; most other purchases earn only 1%.
- Interest rates and late fees apply the same way as any other credit card, and carrying a balance will cost you money in interest regardless of the rewards you earn.
- Whether this card makes sense depends on how much you spend at Amazon and Whole Foods relative to other retailers.
When the Amazon Card Makes Financial Sense
The card is most useful if you spend a significant amount at Amazon or Whole Foods each month. A household that spends $500 monthly at Amazon would earn $25 per month (5% on the Prime version) or $15 per month (3% on the standard version). Over a year, that is $300 or $180 in cash back with no annual fee.
The 2% back at gas stations and restaurants is competitive with many general-purpose cards, but the 1% on everything else is below average. Many cards without annual fees offer 1.5% or 2% on all purchases. If you buy groceries at stores other than Whole Foods, you earn only 1%, which is a weakness compared to cards that reward grocery spending across all chains.
The card makes less sense if you split your spending across many retailers. A person who buys $200 at Amazon, $100 at a grocery chain other than Whole Foods, $100 at a clothing store, and $100 at other places would earn $10 + $1 + $1 + $1 = $13 per month. A flat 1.5% card on the same $500 would earn $7.50, so the Amazon card still wins — but the difference shrinks as your Amazon spending shrinks.
Interest, Fees, and Account Management
The card carries a variable interest rate that changes with the prime rate. Chase publishes the current rate on the card's terms page, but it typically ranges from 18% to 24% APR depending on your credit score and current market conditions. If you carry a balance, you will pay interest on the unpaid amount each month until it is paid off.
There is no annual fee and no foreign transaction fee. Late payments trigger a late fee (typically $25 to $40 for the first late payment, higher for subsequent ones within six months). If you miss a payment by more than 60 days, the interest rate can increase to a penalty APR, which is usually several percentage points higher than your regular rate.
The card reports to all three credit bureaus (Equifax, Experian, and TransUnion), so on-time payments build your credit history, and missed payments damage it. If you close the account, the available credit disappears from your credit report, which can lower your credit score temporarily because it reduces your total available credit.
How the Rewards Actually Work
Cash back is not automatic. You must redeem it yourself through your Chase account or Amazon account. Most cardholders choose to have it posted as a statement credit (which reduces what you owe) or transferred to Amazon as a balance (which you can spend on purchases). The redemption typically processes within a few days.
Rewards do not expire as long as your account remains open and in good standing. If you close the card, any unredeemed cash back is forfeited, so you lose the benefit of future earnings. This is why closing a card you have held for years can feel wasteful — you are walking away from future rewards, not past ones.
The 5% rate at Amazon applies to Amazon.com purchases and items sold by Amazon itself. Third-party sellers on Amazon's marketplace may not may have access to, depending on how the transaction is coded. Whole Foods purchases in-store and online both earn the higher rate.
Comparing the Amazon Card to Other Options
The Chase Freedom Unlimited card earns 1.5% on all purchases with no annual fee and no Prime membership requirement. If you do not spend heavily at Amazon or Whole Foods, this card will earn more cash back on most of your spending. The Chase Freedom Flex earns 5% on rotating categories (which change quarterly) and 1% on everything else, also with no annual fee.
The Citi Double Cash card earns 2% on all purchases (1% when you buy, 1% when you pay the bill) with no annual fee. For someone who does not shop at Amazon frequently, this beats the Amazon card's 1% on non-category purchases.
If you have a high credit score and spend heavily across many categories, a premium card like the Chase Sapphire Preferred (which charges $95 annually) might earn more in total rewards, but it requires an annual fee. The Amazon card's advantage is that it costs nothing to hold.
The Prime Membership Requirement
The Prime Rewards version only delivers its top rate (5% at Amazon and Whole Foods) if you maintain an active Prime membership. Prime costs $139 per year (or $14.99 monthly) as of 2024, though this price varies and has increased in the past. If you do not have Prime, you automatically earn the lower 3% rate at Amazon and Whole Foods, matching the standard Amazon Rewards card.
The math works like this: if you spend $3,000 per year at Amazon, the Prime version earns $150 (5%), while the standard version earns $90 (3%). The $60 difference does not cover a full Prime membership ($139), so you would need to spend roughly $6,950 at Amazon annually for the Prime card to pay for itself through rewards alone. Add Whole Foods spending, and the breakeven point drops.
Many people hold Prime for reasons other than the credit card reward rate — shipping, video streaming, and other benefits. If you already pay for Prime, the higher cash back rate is a bonus. If you do not, the standard Amazon card is the better choice.
Closing the Card or Switching Away
If you decide to close the Amazon card, contact Chase directly by phone or through your online account. You can redeem any remaining cash back before closing, or it will be forfeited. Closing the account will reduce your available credit, which may lower your credit score temporarily because it changes your credit utilization ratio (the amount of credit you use divided by the amount available).
There is no penalty for closing the card early. Unlike some cards that charge a fee if you close within a certain period, the Amazon card allows you to close it anytime without cost. Your credit report will show the account as closed, and it will remain visible for seven years before falling off.
If you want to switch to a different card, you do not need to close the Amazon card first. You can simply stop using it and apply for another card. Keeping the closed account open (by not closing it) actually helps your credit score more than closing it, because it preserves your available credit history. Many people keep old cards open for this reason, even if they no longer use them.
Frequently Asked Questions
Does the Amazon card charge interest if I pay my balance in full each month?
No. Interest only applies to the unpaid balance. If you pay the full statement balance by the due date each month, you owe no interest. This is true for any credit card. The key is paying the entire balance, not just the minimum payment.
What happens to my cash back if I close the card?
Any unredeemed cash back is lost when you close the account. You should redeem all cash back before closing. Once the account is closed, you cannot earn new rewards, but past rewards that were already redeemed (posted as a statement credit or transferred to Amazon) are yours to keep.
Can I use the Amazon card at stores other than Amazon?
Yes. The card works anywhere Visa is accepted. You earn 2% at gas stations, restaurants, and drugstores, and 1% everywhere else. The highest rates (5% or 3%) are limited to Amazon.com and Whole Foods only.
Does the Amazon card hurt my credit score when I open it?
Opening any new card triggers a hard inquiry, which temporarily lowers your score by a few points. The new account also lowers your average account age. However, the long-term benefit of a higher credit limit and on-time payments usually outweighs this short-term dip within a few months.
Is the Amazon card better than a cash back card that pays the same rate on everything?
It depends on your spending. If you spend more than half your money at Amazon and Whole Foods, the Amazon card wins. If you spread spending across many retailers, a flat-rate card like the Chase Freedom Unlimited (1.5% on all purchases) will likely earn more total cash back.