The Amazon credit card makes sense if you shop on Amazon regularly, but it is not the right choice for everyone
Amazon offers two credit cards through Chase: the Amazon Prime Rewards Visa Signature Card and the Amazon Rewards Visa Card. The Prime version gives you 5% cash back on Amazon purchases and Prime Video purchases if you are a Prime member, 2% at gas stations and restaurants, and 1% everywhere else. The standard Amazon card gives you 3% cash back on Amazon purchases and 1% everywhere else. Neither card charges an annual fee.
Whether either card is right for you depends on how much you spend on Amazon, whether you have a Prime membership, and how you compare the rewards to other cards you might use instead. A card that earns 5% on Amazon is only valuable if you actually shop there enough to make that rate matter more than the 2% or 3% you could earn on a flat-rate card.
Key Takeaways
- The Amazon Prime Rewards card pays 5% cash back on Amazon purchases only if you have an active Prime membership; without it, you earn 3% like the standard card.
- Both cards charge no annual fee, which means there is no cost to holding one even if you do not use it much.
- The 2% cash back at gas stations and restaurants on the Prime card is lower than what you can earn with other cards designed for those categories.
- Cash back from Amazon cards posts to your Amazon account as a statement credit, not to your bank account, which limits how you can use the reward.
- If you rarely shop on Amazon or do not have Prime, a flat-rate cash back card will likely earn you more money overall.
When the Amazon Prime card actually saves you money
The 5% rate on the Amazon Prime card only works in your favor if you spend enough on Amazon to make up for the lower rates elsewhere. If you spend $3,000 a year on Amazon, you earn $150 in cash back. With a flat-rate 2% card, you would earn $60 on that same $3,000. The difference is $90 — but only if you do not spend much outside Amazon.
The moment you factor in other spending, the math changes. The Prime card pays 2% at gas stations and restaurants, while many other cards pay 3% or more on those categories. If you spend $200 a month on gas and restaurants, that is $2,400 a year. A card paying 3% earns you $72; the Amazon card earns you $48. Over a year, you lose $24 by using the Amazon card for those purchases instead of a card built for them.
The card makes the most sense if Amazon spending is genuinely your largest spending category and you have no other card that earns more than 1% on general purchases. If you already carry a card that earns 2% or more on everything, the Amazon card is only worth adding if your Amazon spending is substantial enough to justify carrying two cards.
How cash back works on Amazon cards
Cash back from the Amazon Prime card and the standard Amazon card does not go into your bank account. Instead, it appears as a statement credit on your Amazon account, which you can use toward purchases on Amazon.com or on items sold by third-party sellers through Amazon. You cannot transfer it to your bank, use it at other retailers, or convert it to cash.
This restriction matters because it locks your reward into Amazon's ecosystem. If you ever stop shopping on Amazon or want to use your cash back elsewhere, you cannot. Some people see this as a feature — it makes the reward feel like free Amazon money. Others see it as a limitation that makes the card less flexible than one that credits cash back to your bank account.
What happens if you lose your Prime membership
If you have the Amazon Prime Rewards card but let your Prime membership lapse, your card does not close. However, your cash back rate on Amazon purchases drops from 5% to 3%, matching the standard Amazon card. You keep earning 2% at gas stations and restaurants and 1% everywhere else.
This means if you are on the fence about keeping Prime, the card gives you a reason to renew — the 5% rate is only available to Prime members. If you cancel Prime, you lose the main advantage of the card. In that case, you might want to switch to a different card or downgrade to the standard Amazon card, which has the same annual fee (none) but lower expectations.
Comparing the Amazon card to other options
The best card for you depends on where you spend the most money. If you spend heavily on groceries, a card earning 3% or more on groceries will beat the Amazon card. If you travel and want points toward flights, a travel card will serve you better. If you want simplicity and do not want to track multiple cards, a flat-rate 2% cash back card will earn you more on non-Amazon purchases.
Some people carry the Amazon card alongside another card — using the Amazon card only for Amazon purchases and a different card for everything else. This approach works if you are disciplined about which card you use when. If you tend to use whichever card is in your wallet, you will likely end up using the Amazon card for purchases where another card would earn you more, which defeats the purpose.
A table comparing the Amazon Prime card to two common alternatives shows the difference:
| Card | Amazon | Gas/Restaurants | Other | Annual Fee |
|---|---|---|---|---|
| Amazon Prime Rewards Visa Signature | 5% (Prime members only) | 2% | 1% | None |
| Citi Double Cash | 1% | 1% | 1% | None |
| Chase Sapphire Preferred | 1% | 3% | 1% | $95 |
The credit approval process for Amazon cards
Amazon credit cards are issued by Chase, so the approval process is the same as any Chase card. Chase will check your credit report, review your income and existing debts, and decide whether to approve you and at what credit limit. You can request a card online through Amazon's website or through Chase directly.
If you are approved, the card typically arrives within 7 to 10 business days. You can use it when ready for Amazon purchases if you add it to your Amazon account before the physical card arrives. There is no waiting period — once Chase approves you, you can start earning rewards right away.
Fees and other costs to know about
The Amazon Prime Rewards card and the standard Amazon card both charge no annual fee. There are no foreign transaction fees if you use the card outside the United States, though the exchange rate Chase uses may be higher than the actual rate. There are no fees for late payments, but interest will accrue on any balance you carry, just like any other credit card.
The main cost of the card is opportunity cost — if you use it for purchases where another card would earn you more, you are losing money in the form of lower rewards. This is not a fee Chase charges you, but it is a real cost to your wallet.
Frequently Asked Questions
Can I use the Amazon card at stores other than Amazon?
Yes. The card works anywhere Visa is accepted. You earn 2% cash back at gas stations and restaurants (if you have the Prime version) and 1% everywhere else. The 5% rate only applies to Amazon.com purchases and Prime Video purchases.
What if I do not have a Prime membership?
You can still get the Amazon card, but you will earn 3% cash back on Amazon purchases instead of 5%. The standard Amazon card also earns 3% on Amazon purchases and has no annual fee, so there is no advantage to the Prime version unless you have or plan to get a Prime membership.
Does the Amazon card help build credit?
Yes, like any credit card, the Amazon card reports to the three major credit bureaus. Using it responsibly — paying on time and keeping your balance low — can help build your credit history. Missed payments or high balances will hurt your credit score.
Can I transfer my cash back to another account?
No. Cash back from Amazon cards appears only as a statement credit on your Amazon account. You cannot transfer it to your bank account, use it at other retailers, or convert it to cash. You can only spend it on Amazon.
What is the credit limit on the Amazon card?
Your credit limit depends on your credit score, income, and existing debts. Chase decides your limit when you are approved. You can request a higher limit after you have had the card for a few months and have made on-time payments.