The Amazon Prime Card makes sense if you spend at least $500 a year on Amazon and have Prime membership, but the math changes based on where else you shop
The Amazon Prime Rewards Visa Signature Card gives you 5% back on Amazon purchases and Whole Foods, 2% at gas stations and restaurants, and 1% everywhere else. You pay no annual fee. Whether it saves you money depends entirely on your actual spending pattern, not on the card's rewards alone.
The card's value sits in one place: the 5% rate on Amazon. A typical Amazon shopper spending $100 a month ($1,200 a year) earns $60 in rewards annually. That is real money. But if you spend $50 a month on Amazon, you earn $30 — which may not offset the friction of carrying another card. The 2% on restaurants and gas is standard; many competing cards offer the same or better.
The card requires an active Prime membership ($139 per year as of 2024, though this varies). If you already pay for Prime for shipping and video, the card costs you nothing extra. If you would sign up for Prime only to use this card, the math breaks: you would need to spend roughly $2,800 on Amazon annually just to earn back the Prime fee in rewards.
Key Takeaways
- The card's main advantage is 5% back on Amazon and Whole Foods purchases; the 2% on gas and restaurants matches other cards and is not a deciding factor.
- You need to already have Prime membership for the card to make financial sense; the card itself has no annual fee, but Prime does.
- At $100 monthly Amazon spending, you earn roughly $60 per year in rewards; below $50 monthly, the benefit shrinks significantly.
- The card's approval odds are higher than premium cards because Amazon actively markets it, but your credit score still matters.
- Closing the card does not affect your Prime membership, and you can keep the card open without using it if you want to preserve the account age.
How the rewards actually add up
The 5% rate applies to purchases made directly on Amazon.com and Amazon Fresh, plus Whole Foods when you use the card in-store or online. It does not apply to third-party sellers on Amazon Marketplace, even though you buy through Amazon's site — the merchant category code determines the rate, not the retailer's name.
The 2% category covers gas stations and restaurants, which is useful but not exceptional. Chase Freedom Flex, for example, also offers 5% rotating categories (including gas and restaurants for three months at a time) plus 1.5% on everything else. The Citi Double Cash gives 2% on all purchases with no categories to track. If you eat out frequently or drive a lot, a different card might earn you more.
The 1% catch-all rate on everything else is below average. Most competing cards offer 1.5% or 2% flat. This matters if you spend significantly outside Amazon, Whole Foods, gas, and restaurants. A card that earns 2% everywhere will beat the Amazon card on non-category purchases, even if the Amazon card's 5% rate is higher.
When the card makes financial sense
The card is worth keeping if you meet two conditions: you have Prime membership already, and you spend at least $500 per year on Amazon. At that threshold, you earn $25 annually in rewards, which covers the mental cost of managing another card. Below that, the rewards are too small to justify the account.
The card becomes genuinely valuable at $1,500+ annual Amazon spending. At that level, you earn $75 per year, which is meaningful enough to influence your decision to keep the card open. If you also shop at Whole Foods regularly, add another $100 to $200 in annual rewards depending on your frequency.
The card loses value if you have a competing card that earns more on your actual spending mix. If you spend heavily on restaurants and gas but rarely on Amazon, a card offering 3% on dining and 3% on gas will outpace the Amazon card's 2% rates in those categories. Run the numbers on your last three months of statements to see where your money actually goes.
How approval and credit limits work
Amazon actively markets this card to Prime members, so approval odds are higher than for premium cards like the Sapphire Reserve or Amex Platinum. You typically need a credit score of 670 or above, though some approvals happen in the 650 range. Amazon's underwriting is more lenient than Chase's other cards because the company benefits from increased Amazon spending.
Your initial credit limit depends on your credit profile. Most approvals start between $1,000 and $5,000. You can request an increase after six months of on-time payments, and Amazon usually grants increases without a hard inquiry after the first year.
The card uses Visa Signature benefits, which include purchase protection, travel accident insurance, and roadside assistance. These are standard features on most Visa Signature cards and rarely influence the decision to keep or close the card.
Interest rates and fees to understand
The card has no annual fee and no foreign transaction fees. The purchase APR varies by creditworthiness but typically ranges from 18% to 24%. The cash advance APR is higher (usually 25% to 29%) and starts accruing immediately with no grace period — do not use this card for cash advances.
If you carry a balance, interest charges will quickly erase any rewards you earn. A $1,000 balance at 21% APR costs you $210 per year in interest. You would need to spend $4,200 on Amazon at 5% back just to break even. Always pay the full statement balance to avoid this trap.
Late fees are $25 to $35 for the first late payment and up to $40 for subsequent ones within six billing cycles. These fees are standard across the industry but worth noting if you manage multiple cards.
Comparing the Amazon card to other options
The main competitor is the Chase Freedom Flex, which offers 5% back on rotating categories (including Amazon for the first year, then 1% after), 3% on dining and drugstores, and 1% elsewhere. If you want to maximize Amazon rewards long-term, the Amazon card wins. If you want flexibility across multiple categories, the Freedom Flex may suit you better — though you lose the 5% on Amazon after year one.
The Citi Double Cash earns 2% on all purchases with no categories. It beats the Amazon card on non-Amazon spending but loses on the 5% Amazon rate. The Citi card is better if you spend evenly across many merchants and want simplicity.
The American Express Blue Cash Preferred offers 3% on transit and gas, 3% on US supermarkets (up to $150 per quarter, then 1%), and 1% elsewhere. It has a $95 annual fee. This card wins if you spend heavily on groceries and transit but lose if Amazon is your primary category.
| Card | Amazon Rate | Other Top Rate | Annual Fee | Best For |
|---|---|---|---|---|
| Amazon Prime Rewards Visa | 5% | 2% gas/dining | None | Heavy Amazon + Prime members |
| Chase Freedom Flex | 5% year 1, then 1% | 5% rotating categories | None | Flexible category switching |
| Citi Double Cash | 2% | 2% everywhere | None | Flat-rate simplicity |
| Amex Blue Cash Preferred | 1% | 3% gas/transit/supermarkets | $95 | Grocery and transit heavy |
What happens when you close the card
Closing the Amazon card does not affect your Prime membership. Your Prime account and the credit card are separate products. You can cancel the card and keep Prime, or vice versa.
Closing the card will lower your available credit and increase your credit utilization ratio, which may dip your credit score by a few points. If you have other cards with higher limits, the impact is usually minimal. If this is your only card with significant available credit, wait until you have paid down balances on other cards before closing it.
The account will remain on your credit report for seven years after closing, which helps your credit history length. There is no penalty for closing the card after a year or two if you decide it is not worth keeping.
Keeping the card open without using it
You can keep the Amazon card open indefinitely without using it. Amazon does not close inactive accounts the way some issuers do. The card has no annual fee, so there is no cost to letting it sit.
Keeping the card open preserves your account age, which helps your credit score. It also maintains available credit, which lowers your utilization ratio. If you think you might return to heavy Amazon spending later, keeping the card costs nothing.
If you do keep it open, use it once every six months or so to prevent Amazon from flagging it as dormant. A small purchase like a digital item or a $1 add-on is enough to keep the account active.
Frequently Asked Questions
Does the 5% back apply to Amazon Fresh and Whole Foods?
Yes, the 5% rate applies to Whole Foods in-store and online purchases, and to Amazon Fresh orders. Third-party sellers on Amazon Marketplace do not may have access to for the 5% rate, even though you buy through Amazon's site. The merchant category code determines the rate, not the retailer's name.
What happens to my rewards if I cancel Prime?
Your existing rewards stay in your account and you can use them even after canceling Prime. You will no longer earn 5% on Amazon purchases once Prime ends, but the card itself remains active. You can reactivate Prime later and the 5% rate returns immediately.
Can I use this card if I do not have Prime?
Yes, you can open the card without Prime membership. However, you will only earn 1% on Amazon purchases instead of 5%. The card becomes much less valuable without Prime, so most people should not open it unless they already subscribe.
How long does it take to earn back the Prime membership fee in rewards?
At the standard 5% rate on Amazon, you need to spend roughly $2,800 annually on Amazon to earn $140 in rewards, which covers the $139 Prime fee. If you spend less than $2,800 per year on Amazon, the card does not pay for itself unless you already have Prime for other reasons like shipping and video.
Is the Visa Signature protection worth anything?
Visa Signature benefits like purchase protection and travel insurance are standard on most Visa Signature cards and rarely influence the decision to keep the card. They are useful if you need them, but they should not be the main reason to open or keep the card.