The Amazon Prime Card rewards structure and what it costs
The Amazon Prime Card is a co-branded credit card issued by Chase in partnership with Amazon. It offers cash back on Amazon purchases and certain other spending categories, but it carries an annual fee unless you hold an Amazon Prime membership. The card comes in two versions: the Prime Visa and the Prime Store Card, which works only at Amazon and Whole Foods.
The Prime Visa gives you 5% cash back on Amazon purchases and Whole Foods spending (up to $1,500 per quarter, then 1% after), 2% back at gas stations and restaurants, and 1% on everything else. The Prime Store Card gives you 5% back at Amazon and Whole Foods with no quarterly cap, but only 1% on other purchases. Neither card charges an annual fee if you have an active Amazon Prime membership; without it, the Visa costs $39 per year.
The cash back is not a statement credit that appears automatically — you accumulate it in your Amazon account and can use it toward purchases there. You cannot transfer it to other cards, redeem it for cash, or use it outside Amazon's ecosystem.
Key Takeaways
- The Prime Visa gives 5% cash back on Amazon and Whole Foods purchases, 2% at gas stations and restaurants, and 1% elsewhere, with no annual fee if you hold Prime membership.
- The Prime Store Card offers 5% cash back at Amazon and Whole Foods with no quarterly limit, but only works for those two retailers and 1% everywhere else.
- Cash back accumulates in your Amazon account and can only be spent there, not transferred or redeemed as cash.
- The card is worth comparing against other cash back cards if you spend less than $1,500 per quarter at Amazon, because the 5% cap makes the rewards less valuable at higher spending levels.
- You need an active Prime membership to avoid the $39 annual fee on the Visa version.
When the 5% cash back actually matters
The 5% cash back on Amazon purchases sounds strong until you hit the quarterly cap. On the Prime Visa, you earn 5% back on the first $1,500 you spend at Amazon each quarter (that is $75 in cash back), then only 1% on anything above that. If you spend $3,000 per quarter at Amazon, you are earning $75 on the first $1,500 and $15 on the second $1,500 — an effective rate of 3%, not 5%.
The Prime Store Card has no quarterly cap, so the 5% applies to all Amazon and Whole Foods spending. This matters if you regularly spend more than $1,500 per quarter at those retailers. For most households, the quarterly limit means the effective cash back rate drops below what a flat 2% cash back card would offer once spending exceeds that threshold.
The 2% back at gas stations and restaurants on the Prime Visa is competitive with other cash back cards, but only if you actually use the card there. Many people carry multiple cards specifically to earn higher rates in different categories, so this benefit only matters if the Prime Card is your primary card for those purchases.
How the annual fee affects the math
The $39 annual fee on the Prime Visa applies only if you do not have an Amazon Prime membership. If you already pay for Prime (which costs $139 per year for the standard membership), the card has no additional annual cost. This makes the card a natural fit for existing Prime members who want to consolidate their spending.
If you do not have Prime, the card needs to generate at least $39 in cash back per year to break even. That works out to roughly $780 in annual Amazon spending at the 5% rate, or $1,950 if you are earning 2% on other categories. For light Amazon shoppers, the fee erases the value of the rewards.
The Prime Store Card has no annual fee regardless of Prime membership, which makes it a lower-cost option if you only want rewards at Amazon and Whole Foods and do not care about cash back elsewhere.
Comparing the Prime Visa to other cash back cards
The most direct competitor is the Chase Freedom Unlimited, which gives 1.5% cash back on all purchases with no annual fee and no quarterly caps. If you spend $2,000 per quarter at Amazon, the Prime Visa gives you $75 (5% on $1,500) plus $5 (1% on $500), totaling $80. The Freedom Unlimited gives you $30 on that same $2,000. The Prime Card wins here, but only because of the high Amazon concentration.
If your spending is spread across multiple categories — groceries, gas, restaurants, online shopping — a card like the Capital One SavorOne or the Citi Double Cash (2% on all purchases) may return more cash back overall, especially if you do not spend heavily at Amazon. The advantage of the Prime Card shrinks as your Amazon spending becomes a smaller share of your total spending.
For Whole Foods shoppers, the Prime Visa is one of the few cards that rewards that retailer at a high rate. If you buy groceries there regularly, the 5% back (subject to the quarterly cap) may justify the card even if you do not spend much on Amazon.
What happens to your rewards and how to use them
Cash back from the Prime Visa and Prime Store Card lands in your Amazon account as a balance, not as a statement credit. You see it under "Your Account" in the Amazon app or website, labeled as "Amazon Cash." When you make a purchase, you can choose to explore the balance at checkout, or it applies automatically if you have it enabled.
The balance does not expire as long as your account remains active, but it is tied to your Amazon account. If you close the account or lose access to it, you lose the balance. You cannot transfer it to another person, convert it to cash, or use it anywhere except Amazon and Whole Foods.
Some people view this as a limitation because the rewards are locked into one retailer. Others see it as a built-in spending control — the cash back is harder to misuse because it can only go toward Amazon purchases. Either way, it is worth understanding that this is not the same as cash back that lands in your bank account.
Annual fees, interest rates, and other costs to know
The Prime Visa charges no annual fee if you have Prime, but it does charge interest on balances you do not pay in full. The APR varies by creditworthiness and is not fixed; Chase publishes a range of 18.99% to 27.99% for this card. If you carry a balance, the interest charges will quickly outpace any cash back you earn.
There are no foreign transaction fees on the Prime Visa, which is useful if you travel internationally. There is also no penalty APR for late payments — instead, Chase applies a standard late fee. The card does not charge an annual fee for authorized users, so you can add a family member without extra cost.
The Prime Store Card has similar interest rates and no annual fee, but it is a store card, meaning it can only be used at Amazon and Whole Foods. This limits its usefulness as a general-purpose credit card, though it does mean you cannot accidentally overspend outside those retailers.
Who should and should not get this card
The Prime Visa makes sense if you have an Amazon Prime membership, spend more than $1,500 per quarter at Amazon or Whole Foods, and want a single card that also earns rewards on gas and restaurants. The lack of annual fee for Prime members removes a major barrier, and the 5% rate is genuinely competitive for Amazon spending below the quarterly cap.
The card is less useful if you spend less than $1,500 per quarter at Amazon, because the effective cash back rate drops below 2% once you exceed that threshold. It is also less useful if your spending is spread across many retailers and categories, because the 1% rate on non-Amazon, non-gas, non-restaurant purchases is below what flat-rate cards offer.
The Prime Store Card is worth considering if you shop at Amazon and Whole Foods regularly but do not need rewards elsewhere. It has no annual fee and no quarterly cap, making it simpler than the Visa if your spending is concentrated at those two retailers.
Frequently Asked Questions
Can I use the Prime Card outside the United States?
Yes, the Prime Visa works internationally and has no foreign transaction fees. The Prime Store Card works only at Amazon and Whole Foods locations, which limits its use abroad. Both cards are Visa or Mastercard branded, so they are accepted wherever those networks are accepted.
What happens to my cash back if I cancel my Prime membership?
Your accumulated cash back stays in your Amazon account and remains usable. However, if you cancel Prime and keep the Prime Visa, you will start being charged the $39 annual fee. The cash back balance itself does not disappear when your membership ends.
Does the Prime Card help me build credit?
Yes, like any credit card, the Prime Card reports to the three major credit bureaus. Using it responsibly — paying on time and keeping your balance low — helps build credit history. Carrying a high balance or missing payments will damage your credit score.
Can I earn cash back on Prime membership fees?
No, you cannot earn cash back on the Prime membership itself. You earn cash back only on purchases made with the card at Amazon, Whole Foods, gas stations, and restaurants (depending on which version you have).
Is there a sign-up bonus for new cardholders?
Chase periodically offers sign-up bonuses for the Prime Card, but these vary by time and by offer. Check the current offer on Chase's website or Amazon's card page before you explore, as the bonus amount and earning requirements change throughout the year.