The Amazon credit card makes sense only if you spend enough on Amazon to offset the annual fee
Amazon offers two credit cards through Chase: the Amazon Prime Rewards Visa Signature Card (which requires a Prime membership) and the Amazon Rewards Visa Card (no membership required). The Prime version costs $139 per year and gives you 5% cash back on Amazon purchases and Whole Foods, 2% at gas stations and restaurants, and 1% everywhere else. The non-Prime version has no annual fee but caps you at 3% back on Amazon and 1% on everything else.
Whether either card is worth it depends on one number: how much you actually spend on Amazon each year. If you spend less than $2,800 annually on Amazon, the Prime card's rewards don't cover the $139 fee. If you spend more, they do. But that math only works if you would not have bought those things anyway — the card doesn't create value, it just returns a fraction of what you already spend.
The non-Prime card has no fee, so it costs nothing to carry. The question there is whether 3% back on Amazon beats what you'd earn with a different card you already own. If your regular card gives 2% on all purchases, the Amazon card wins only on Amazon itself.
Key Takeaways
- The Amazon Prime Rewards card costs $139 yearly and returns 5% on Amazon purchases, which means you need to spend at least $2,800 on Amazon annually just to break even on the fee.
- The no-fee Amazon Rewards card offers 3% back on Amazon and 1% elsewhere, making it worth comparing to any 2% flat-rate card you already own.
- Both cards lock you into Amazon's ecosystem — the rewards are only useful if you shop there regularly, unlike cash-back cards that work anywhere.
- The Prime card's other benefits (2% at gas and restaurants, 1% everywhere) rarely offset the annual fee unless Amazon is your primary spending category.
- If you already have a strong cash-back card, adding an Amazon card usually means carrying two cards and tracking which one to use where.
When the Prime card's math actually works
The $139 annual fee is the real cost you need to think about. At 5% back on Amazon purchases, you need to spend $2,800 on Amazon in a year for the rewards to equal the fee. That's about $233 per month. If you spend more than that, the card starts paying you.
But the fee only makes sense if you would spend that money anyway. The card doesn't create savings — it returns a portion of what you already planned to buy. If you're tempted to buy more on Amazon because the rewards feel free, you're actually losing money. The card is designed to feel rewarding, and that feeling is the trap.
The 2% back at gas stations and restaurants, and 1% everywhere else, rarely add up to much. If you spend $100 per month on gas and restaurants combined, that's $24 per year — nowhere near the $139 fee. You'd need to spend $6,950 annually on gas and restaurants just for that portion to cover the fee, which is unlikely unless those are your primary spending categories.
The no-fee card and how it compares to cards you might already own
The Amazon Rewards Visa Card (no Prime membership required) has no annual fee, so the only question is whether 3% back on Amazon beats what you already earn. If you own a card that gives 2% cash back on all purchases, the Amazon card wins you 1% extra on Amazon only. Over a year, that's $10 per $1,000 spent on Amazon.
That 1% difference is real but small. It only matters if you shop on Amazon frequently enough that the extra percentage adds up. If you spend $2,000 per year on Amazon, that's $20 in additional rewards. If you spend $500, it's $5. You have to decide whether that's worth carrying a second card and remembering which one to use.
Many people already own a card that earns rewards on all purchases — a card from their bank, a card from their employer, or a general cash-back card. Adding the Amazon card means two cards in your wallet and two separate reward accounts to track. Some people find that worth it; others find it annoying.
The ecosystem lock-in problem
Both Amazon cards reward you only for spending on Amazon and Whole Foods (or gas and restaurants, in the Prime card's case). The rewards are locked into Amazon's ecosystem — you can't use them at Target, Costco, or anywhere else. That's different from a cash-back card, where the cash goes into your bank account and you can spend it anywhere.
This matters because it makes the rewards feel bigger than they are. A 5% reward on Amazon sounds generous until you realize you can't use it to pay your electric bill or buy groceries at a different store. You're locked into Amazon's prices and selection, which may or may not be the best deal for what you want to buy.
If Amazon is where you buy most things anyway, this isn't a problem — the rewards go where you spend. But if you're considering the card because the rewards sound good, ask yourself first whether you'd shop on Amazon anyway without the card. If the answer is no, the card is encouraging you to spend money you wouldn't otherwise spend, which means it's costing you, not saving you.
How the Prime card's other benefits affect the decision
The Prime Rewards card comes with some perks beyond cash back: extended warranty coverage on purchases, purchase protection, and roadside information. These are real benefits, but they're also available on many other premium cards, and they rarely matter unless something goes wrong.
The card also gives you Visa Signature benefits like concierge service and travel protections. Again, these are real, but most people never use them. If you travel frequently and value travel protections, that might tip the balance. But for most people, these benefits are background noise compared to the $139 fee.
The one benefit that does matter to some people is the extended warranty — it adds extra time to manufacturer warranties on may be able to access purchases. If you buy expensive electronics on Amazon regularly, this could save you money on repairs. But you'd need to actually use it to justify the fee, and most people don't.
What happens to your rewards and what you can do with them
Both cards deposit rewards as a statement credit on your Amazon.com account. You can use the credit to buy anything on Amazon, or you can transfer it to your bank account as a deposit. The transfer option is important because it means you're not completely locked in — you can take the cash and spend it elsewhere if you want.
However, the transfer process takes a few days, and some people find it easier to just spend the credit on Amazon. That's by design — the card issuer wants you to use the rewards on Amazon because it keeps you shopping there. If you plan to transfer rewards to your bank account regularly, the card works more like a regular cash-back card. If you'll spend them on Amazon, you're locked in.
The real question: would you use this card instead of one you already own?
Most people already own at least one credit card. The question isn't whether the Amazon card is good in the abstract — it's whether it's better than what you already have. If you own a 2% cash-back card and spend $3,000 per year on Amazon, the Prime card wins you an extra $150 in rewards but costs $139 in fees, netting you $11. That's not worth a second card in your wallet.
If you spend $5,000 per year on Amazon, the math changes: you earn $250 in extra rewards (5% instead of 2% on $5,000), minus the $139 fee, for a net gain of $111. That's real money, and it might be worth carrying the card. But you have to actually spend that much, and you have to be honest about whether you would anyway.
The no-fee card is simpler: if you shop on Amazon regularly and own a card that earns less than 3% there, it's worth adding. You lose nothing by carrying it, and you gain a small amount on Amazon purchases. The downside is minimal.
Frequently Asked Questions
Do I need Amazon Prime to use the Amazon credit card?
No. Amazon offers two cards: one that requires Prime membership (and costs $139 yearly) and one that doesn't (and has no annual fee). The Prime version gives higher rewards, but you only get that benefit if you already have or plan to pay for Prime membership. If you don't have Prime, the no-fee card is your only option.
Can I use the rewards for anything other than Amazon purchases?
Yes. Both cards let you transfer rewards to your bank account as a statement credit, which you can then spend anywhere. The transfer takes a few days, and some people find it easier to just spend the rewards on Amazon. But the option exists if you want cash instead of Amazon credit.
What if I have a card that already gives me cash back on all purchases?
Compare the percentages. If your current card gives 2% everywhere and the Amazon card gives 3% on Amazon, you gain 1% on Amazon only. Over a year, that's $10 per $1,000 spent on Amazon. Decide if that's worth carrying a second card. For most people, it's not unless Amazon is a huge part of their spending.
Does the Prime card's annual fee get waived if I don't use it?
No. You pay the $139 fee every year, regardless of how much you use the card. Some cards waive the fee if you don't use them, but Amazon's Prime card does not. If you're not sure you'll spend enough to justify the fee, the no-fee card is safer.
What happens to my rewards if I close the card?
Any rewards you've earned stay in your Amazon account and can be used for purchases. However, if you close the card, you stop earning new rewards. If you're thinking about closing it because the fee isn't worth it, that's a sign you shouldn't have opened it in the first place.