The Amazon credit card makes sense only if you spend enough on Amazon to cover the annual fee
Amazon offers two credit cards: the Amazon Prime Rewards Visa Signature Card (which requires a Prime membership) and the Amazon Rewards Visa Card (no membership required). Both cards earn cash back on Amazon purchases, but the Prime version costs $139 per year and the standard version is free. The real question is whether the rewards you earn will outweigh what you pay — and whether you'll actually use the card the way the rewards structure encourages.
The Prime card gives you 5% cash back on Amazon and Whole Foods purchases, 2% at restaurants and gas stations, and 1% everywhere else. The standard Amazon card gives you 3% on Amazon purchases and 1% everywhere else. Neither card is worth carrying if you don't shop on Amazon regularly. If you spend less than $2,800 per year on Amazon, the standard card's rewards won't offset the Prime membership fee that comes bundled with the Prime card option.
Key Takeaways
- The Amazon Prime Rewards card costs $139 yearly and only makes financial sense if you spend at least $2,800 per year on Amazon to earn back that fee in rewards.
- The standard Amazon Rewards card is free but earns only 3% cash back on Amazon purchases, making it less rewarding than the Prime version for heavy Amazon shoppers.
- Cash back from Amazon cards posts as Amazon account credit, not cash, which means you can only use it to buy from Amazon — it's not as flexible as cash back from other cards.
- The 5% category rewards on the Prime card (Amazon, Whole Foods, restaurants, gas) only work if you use the card in those specific places, so casual cardholders won't see the advertised benefits.
- Both cards offer no sign-up bonus, so there's no initial incentive to open one compared to other rewards cards that offer $100 to $300 upfront.
How the rewards structure actually works
Cash back from Amazon cards doesn't arrive in your bank account. Instead, it sits in your Amazon account as a credit you can only spend on Amazon purchases. This matters because it locks you into shopping there — you can't use the rewards to pay down debt, cover an unexpected bill, or buy from anywhere else. If you're trying to build good credit habits, this restriction is worth considering.
The 5% rate on the Prime card applies only to Amazon.com and Whole Foods purchases. It does not apply to Amazon Fresh, Amazon Business, or third-party sellers on Amazon's marketplace — only to items sold directly by Amazon. The 2% category for restaurants and gas stations requires you to remember to use the card there instead of a different rewards card you might already own. Most people who carry multiple cards end up using whichever one is in their wallet, not the one with the best rate for that purchase.
When the Prime card math actually works
To break even on the $139 annual fee, you need to earn $139 in cash back per year. At 5% on Amazon purchases, that means spending $2,800 per year on Amazon — about $233 per month. If you spend less than that, you're paying the membership fee for rewards you won't recoup.
The calculation gets more complicated if you also use the 2% categories. A household that spends $2,000 per year on Amazon, $1,200 on Whole Foods, $2,400 on restaurants, and $1,200 on gas would earn roughly $340 in cash back — enough to justify the fee. But this requires disciplined card use: you have to remember to pull out the Amazon card at the gas pump, the restaurant, and the grocery store. Most cardholders don't maintain that level of attention.
The standard Amazon card (free, no Prime membership required) makes sense only if you spend enough on Amazon that 3% cash back matters to you, but you don't want to pay for Prime. At $3,000 per year in Amazon purchases, you'd earn $90 in rewards — modest, but real.
What you're giving up by choosing an Amazon card
The biggest cost of an Amazon card is opportunity. Every dollar you spend on Amazon with this card is a dollar you're not spending with a different rewards card that might offer more. A flat 2% cash back card (with no annual fee and no category limits) would earn you $60 on $3,000 in spending. The Amazon Prime card would earn you $150 on the same $3,000 — but only if all of it is Amazon purchases. If your $3,000 is split across Amazon, restaurants, and gas, the flat 2% card might actually come out ahead because it doesn't require you to remember which card to use where.
Amazon cards also offer no sign-up bonus. Most credit cards offer a bonus of $100 to $300 in cash back or statement credits if you spend a certain amount in the first few months. Amazon cards skip this entirely. If you're opening a new card anyway, a card with a sign-up bonus will give you more value upfront.
The credit-building angle
If you're rebuilding credit or establishing a credit history, an Amazon card can work — but not because of the rewards. It works because Amazon's issuer (Chase) reports to all three credit bureaus, and the standard card has no annual fee. You can open it, use it for small purchases, and pay it off in full each month. The rewards are just a side effect.
For this purpose, a basic no-fee card from any issuer would serve the same function. You don't need the Amazon card specifically to build credit — you need any card from a major issuer that reports to the credit bureaus and that you can afford to use responsibly. The Amazon card works, but it's not special in this regard.
Comparing the Amazon card to realistic alternatives
If you shop on Amazon regularly and have good credit, compare the Amazon Prime card to a flat 2% cash back card with no annual fee. The flat card will earn less on Amazon purchases (2% instead of 5%), but it earns the same rate everywhere else, requires no annual fee, and gives you cash back you can use anywhere. The break-even point depends on how much of your total spending happens on Amazon versus everywhere else.
If you shop on Amazon occasionally but want rewards on everyday purchases, a card like the Citi Double Cash (2% on all purchases, no annual fee) or the Capital One Quicksilver (1.5% on all purchases, no annual fee) will likely earn you more total rewards because they don't require you to concentrate spending in one place. These cards also offer sign-up bonuses, which the Amazon card does not.
If you have a Prime membership and spend heavily on Amazon, the Prime card's 5% rate is genuinely competitive. But you're already paying $139 for Prime itself — the card is an add-on, not a reason to join.
Red flags that suggest you shouldn't open this card
Don't open an Amazon card if you carry a balance on other cards. The rewards rate doesn't matter if you're paying interest. A card with a 0% introductory APR period would serve you better while you pay down debt.
Don't open it if you shop on Amazon only a few times per year. The rewards won't be meaningful, and you'll have another card in your wallet you don't use regularly. Unused cards can hurt your credit score over time if the issuer closes them due to inactivity.
Don't open it if you're trying to minimize the number of accounts you have. Each new card is a hard inquiry on your credit report and a new account on your credit history. If you already have a rewards card you like, opening another one just for Amazon rewards is unnecessary complexity.
Frequently Asked Questions
Does the Amazon card come with a sign-up bonus?
No. Amazon credit cards offer no introductory bonus for opening an account or meeting a spending threshold. This is unusual — most rewards cards offer $100 to $300 in cash back or statement credits to new cardholders. If you're deciding between the Amazon card and another card, the lack of a bonus is a real disadvantage.
Can I use Amazon cash back outside of Amazon?
No. Cash back from Amazon cards is deposited as a credit in your Amazon account and can only be used to buy from Amazon. If you want rewards you can use anywhere, you need a different card.
What's the difference between the Prime and standard Amazon cards?
The Prime card costs $139 per year and earns 5% on Amazon and Whole Foods, 2% at restaurants and gas, and 1% elsewhere. The standard card is free and earns 3% on Amazon and 1% elsewhere. The Prime card only makes sense if you spend enough on Amazon to earn back the annual fee.
Does the Amazon card help build credit?
Yes, like any credit card from a major issuer. Opening the account creates a new line of credit, and Chase reports your payment history to the credit bureaus. But you don't need the Amazon card specifically for this — any card with no annual fee would work the same way.
What if I have bad credit — can I still get approved?
Amazon cards require good to excellent credit. If you're rebuilding from a low score, you'll likely be denied. A secured credit card or a card designed for people rebuilding credit would be a better starting point.