What the Amazon credit card actually does
The Amazon credit card is a rewards card issued by Chase that gives you cash back on purchases, with higher rates at Amazon and Whole Foods. You earn 5% back on Amazon purchases and Whole Foods, 2% at gas stations and restaurants, and 1% everywhere else — but only if you're an Amazon Prime member. Without Prime membership, the rewards drop to 3% at Amazon and Whole Foods, 2% at gas stations and restaurants, and 1% elsewhere.
There is no annual fee, which means you can hold the card without paying to keep it open. The card works like any other credit card: you charge purchases, receive a bill, and pay it back. The rewards post to your account as a statement credit that reduces your next bill, not as points you redeem separately.
Chase offers two versions: the Amazon Prime Rewards Visa Signature Card (for Prime members) and the Amazon Rewards Visa Card (for non-members). The Prime version has slightly better rewards and includes benefits like extended warranties and purchase protection. Both cards use the Visa network, so they work anywhere Visa is accepted, not just at Amazon.
Key Takeaways
- Amazon Prime members earn 5% cash back on Amazon and Whole Foods purchases, while non-members earn 3%, with no annual fee on either card.
- Rewards post as statement credits that automatically reduce your bill, not points you have to redeem or transfer.
- The card charges interest on unpaid balances just like any credit card, so carrying a balance costs you money even while earning rewards.
- You need a Prime membership to get the highest rewards rate, so the card's value depends on whether you already pay for Prime.
- The card approval process is the same as any Chase credit card and typically takes a few minutes to a few days.
How rewards actually post to your account
When you make a purchase with the Amazon credit card, the transaction posts to your account within a few days. The rewards percentage is calculated based on the merchant category — Amazon.com and Whole Foods get the highest rate, gas stations and restaurants get the middle rate, and everything else gets the base rate. You don't have to do anything to earn the rewards; they calculate automatically.
The cash back appears as a statement credit on your monthly bill, usually within one to three billing cycles of the purchase. This credit reduces the amount you owe, so if you charged $100 and earned $5 in rewards, your bill shows $95 due instead of $100. You can't redirect the rewards to a different account or convert them to points; the credit applies only to your Amazon credit card balance.
If you pay your bill in full each month, the rewards effectively reduce your cost. If you carry a balance and pay interest, the interest charges will often exceed the rewards you earn, especially on smaller purchases. For example, a $100 purchase at 5% rewards earns you $5, but if you carry that balance for a year at 20% interest, you pay $20 in interest — a net loss of $15.
Annual fees, interest rates, and what it costs to carry a balance
The Amazon credit card has no annual fee, which is unusual for a rewards card. You can open it, use it occasionally, and close it without ever paying to hold the card. This makes it low-risk to open if you're curious about the rewards structure.
The interest rate (called the APR, or annual percentage rate) varies based on your credit score and credit history. Chase typically offers rates between 16% and 24% for this card, though your actual rate depends on your creditworthiness. The card also charges a penalty APR of up to 29.99% if you miss a payment by 60 days or more.
Late fees run up to $40 for the first late payment and up to $41 for subsequent ones within six months. If you miss a payment by 30 days, the card issuer reports it to the credit bureaus, which damages your credit score. The combination of interest, late fees, and credit damage makes carrying a balance expensive — far more expensive than the rewards offset.
When the Amazon card makes financial sense
The card works best if you already have an Amazon Prime membership and spend money regularly at Amazon or Whole Foods. If you spend $200 a month at Amazon, you earn $10 in monthly rewards ($120 per year) at the 5% rate. That's real money, but only if you pay the bill in full each month so you don't pay interest.
The card also makes sense if you use it for gas and restaurant purchases, where it earns 2% cash back. Many everyday credit cards earn only 1% on all purchases, so the 2% on these categories is a meaningful upgrade. The 1% on everything else is standard for no-annual-fee cards, so that's not a reason to choose this card over alternatives.
The card does not make sense if you don't have a Prime membership and don't plan to get one. The 3% Amazon rate and 2% restaurant rate are decent, but not exceptional — other cards offer similar or better rates without requiring membership. It also doesn't make sense if you carry a balance regularly, because the interest charges will dwarf the rewards.
How to open the card and what happens after approval
You can open the Amazon credit card online through Chase's website or through Amazon's own credit card page. The process takes about 10 minutes and asks for your name, address, Social Security number, income, and employment information. Chase uses this information to check your credit and decide whether to approve you and at what interest rate.
You'll typically get a decision within minutes to a few days. If approved, Chase mails you the physical card, which usually arrives within 7 to 10 business days. You can often request a temporary card number to use online when ready while you wait for the physical card to arrive. If denied, Chase sends you a letter explaining why, and you can reapply after addressing the issue (usually a low credit score or too many recent credit inquiries).
Once the card arrives, you set up it through the Chase website or app, set up a PIN if you want to use it at ATMs (though this is not recommended because ATM withdrawals charge a cash advance fee), and start using it. Your first bill arrives about 30 days after your first purchase. You can pay the bill online, by phone, or by mail, and you can set up automatic payments so the full balance pays automatically each month.
How this card compares to other no-annual-fee rewards cards
The Amazon card's main competitor is the Chase Freedom Unlimited, which earns 1.5% cash back on all purchases with no annual fee. If you don't spend much at Amazon or Whole Foods, the Freedom Unlimited is simpler because you earn the same rate everywhere. The Amazon card only wins if you spend enough at Amazon and Whole Foods to make the 5% rate worth the complexity of tracking different categories.
Another option is the Citi Double Cash card, which earns 2% cash back on all purchases (1% when you buy, 1% when you pay the bill). This is better than the Amazon card's 1% base rate, but worse than the 5% Amazon rate. The choice depends on where you spend most of your money.
If you're willing to pay an annual fee, cards like the Chase Sapphire Preferred offer higher rewards on travel and dining, though they cost $95 per year. For most people, the no-annual-fee Amazon card is worth keeping open even if you don't use it much, because there's no penalty for holding it. You can use it for Amazon purchases and keep another card for everyday spending.
What happens if you miss a payment or close the card
If you miss a payment, Chase reports it to the credit bureaus after 30 days, which damages your credit score. The damage is temporary but significant — a single late payment can drop your score by 100 points or more. After 60 days, Chase charges a penalty APR of up to 29.99%, which applies to new purchases and existing balances. After 180 days of non-payment, Chase may close the account and send the debt to a collection agency.
If you close the card, any remaining balance still needs to be paid, and you lose the ability to earn rewards on future purchases. Closing the card also affects your credit score because it reduces your total available credit and changes the age of your credit history. If you want to stop using the card, it's better to keep it open and unused than to close it, as long as there's no annual fee.
If you have a balance when you close the card, Chase continues to charge interest until you pay it off. There's no benefit to closing the account early — you still owe the money and still pay interest. The only reason to close it is if you're concerned about fraud or if you're trying to reduce the temptation to overspend.
Frequently Asked Questions
Do I have to be a Prime member to get the card?
No. Chase offers a version for non-Prime members that earns 3% at Amazon and Whole Foods instead of 5%. However, if you're not a Prime member and don't plan to become one, other cards offer better rewards on everyday purchases, so the Amazon card may not be the best choice for you.
Can I use the rewards to pay for Prime membership?
No. The rewards post as a statement credit that reduces your credit card bill, not as Amazon account credit. You can't redirect them to pay for Prime or to buy anything on Amazon. The credit only applies to your credit card balance.
What if I want to return something I bought with the card?
When you return an item, the refund goes back to the card you used to purchase it. If you earned rewards on that purchase, the rewards are not reversed — you keep them. This is one of the benefits of using the card: you earn rewards on purchases you later return.
Does the card work internationally?
Yes, the card works anywhere Visa is accepted. However, Chase charges a foreign transaction fee of 3% on purchases made outside the United States. This means if you spend $100 internationally, you pay an extra $3 in fees. For frequent international travelers, a card with no foreign transaction fee is a better choice.
Can I transfer my rewards to another card or account?
No. The rewards are locked to your Amazon credit card account and appear only as a statement credit. You can't move them to another Chase card, convert them to points, or redirect them anywhere else. The credit reduces your bill automatically.