The Amazon credit card has no annual fee
The Amazon Prime Rewards Visa Signature Card and the Amazon Prime Rewards Visa Card both charge zero dollars per year to hold them. You pay nothing to open the account, nothing to keep it open, and nothing if you never use it. There is no hidden annual charge that appears after a trial period.
Amazon also offers the Amazon Business Prime Rewards Visa Card for business owners, which also has no annual fee. If you are comparing Amazon cards to other rewards cards, this is a real difference — many competing cards charge $95 to $550 per year, so the zero-fee structure matters when you are deciding whether to explore.
Key Takeaways
- Both the Amazon Prime Rewards Visa Signature Card and the standard Amazon Prime Rewards Visa Card charge no annual fee, ever.
- You do not need an Amazon Prime membership to hold an Amazon credit card, though the card rewards are better if you do have Prime.
- The card costs nothing to open and nothing to close, so there is no financial penalty to cancelling if you stop using it.
- Other rewards cards often charge annual fees ranging from $95 to $550, so the Amazon card's zero fee is a genuine advantage if the rewards match your spending.
What the Amazon Prime Rewards Visa Signature Card costs
The Visa Signature version has no annual fee and no monthly fee. You also do not pay a fee to add an authorized user to your account. If you close the card, there is no early termination fee — you can cancel at any time without penalty.
The card does charge interest if you carry a balance from month to month. The APR (annual percentage rate) varies by person and changes over time, so you will see your specific rate in the offer details before you open the account. If you pay your full statement balance by the due date each month, you pay no interest at all.
You also do not pay fees for common transactions: there is no fee for balance transfers, no fee for cash advances, and no foreign transaction fee if you use the card outside the United States. Late payments do not trigger a fee if you pay within a grace period, though your APR may increase if you miss a payment.
How the standard Amazon Prime Rewards Visa Card differs
Amazon offers a second version called the Amazon Prime Rewards Visa Card (without "Signature"). This version also has no annual fee. The main difference is that it does not come with Visa Signature benefits — those are extra protections and services that Visa Signature cardholders receive, such as purchase protection and travel accident insurance.
Both cards earn the same cash back rewards on Amazon purchases and at Whole Foods. The rewards rate is higher if you have an active Amazon Prime membership, but you do not need Prime to hold either card. If you do not have Prime, the rewards are lower but still available.
Why Amazon cards have no annual fee
Amazon makes money from the card through interchange fees — the small percentage that merchants pay when you swipe your card. Amazon also benefits when cardholders spend more on Amazon.com and at Whole Foods, where they earn higher rewards. Because the card drives spending to Amazon's own ecosystem, Amazon does not need to charge you an annual fee to make the card profitable.
This is different from premium travel cards or business cards, which often charge $95 to $550 per year because they offer benefits like airport lounge access, travel credits, or concierge services. The Amazon card's value comes from cash back rewards, not from paid perks.
What happens if you close your Amazon credit card
You can close your Amazon credit card at any time by calling the card issuer (Chase) or by logging into your online account. There is no fee for closing the account, no penalty for closing early, and no requirement to keep the card open for a minimum time.
When you close the card, any remaining balance still needs to be paid. If you have a zero balance, you can close the account when ready with no financial consequence. Your credit score may be affected slightly because closing an account changes your credit history, but there is no fee involved in the closure itself.
Comparing Amazon cards to other rewards cards
Many cash back and rewards cards charge annual fees. The Chase Sapphire Preferred charges $95 per year. The American Express Gold Card charges $250 per year. The Capital One Venture X charges $395 per year. These cards justify their fees by offering travel credits, higher rewards rates, or premium benefits.
The Amazon card competes on a different basis: it charges nothing and offers rewards that are valuable if you spend regularly on Amazon or at Whole Foods. If you rarely shop at either place, the card may not be worth holding even though it is free. If you shop frequently at Amazon, the zero annual fee plus the rewards rate may make it more valuable than a premium card that charges $95 or more per year.
| Card | Annual Fee | Best For |
|---|---|---|
| Amazon Prime Rewards Visa | $0 | Amazon and Whole Foods shoppers |
| Chase Sapphire Preferred | $95 | Travel and dining rewards |
| American Express Gold | $250 | Dining and travel with premium benefits |
| Capital One Venture X | $395 | Frequent business travellers |
Frequently Asked Questions
Do I need Amazon Prime to get the Amazon credit card?
No. You can open an Amazon credit card without Prime. However, the rewards rate is higher if you do have an active Prime membership. Without Prime, you earn a lower cash back percentage on Amazon purchases, but you still earn rewards.
Will the annual fee change after my first year?
No. Amazon has not charged an annual fee on either version of the Prime Rewards card, and there is no indication that this will change. The card is designed to have zero annual cost as a permanent feature, not a promotional offer.
Are there any hidden fees I should know about?
There are no hidden annual or monthly fees. You may incur fees for specific actions — for example, a late payment fee if you miss a payment, or interest charges if you carry a balance. But the card itself costs nothing to hold.
What if I want to downgrade to a different Amazon card?
Amazon only offers the two Prime Rewards versions (Signature and standard). You cannot downgrade between them. If you want to close your card, you can do so without penalty, and you can reopen a different version later if you choose.
Does the business version of the Amazon card have an annual fee?
No. The Amazon Business Prime Rewards Visa Card also charges zero annual fee. It is designed for business owners and offers similar rewards on Amazon Business purchases, but the annual cost is the same: nothing.