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 Prime Store Card (which works only at Amazon and Whole Foods). Both cards give you cash back on purchases, but the rewards structure and costs are different enough that the right choice depends on where you actually spend money.
The Prime Rewards card costs nothing if you have an active Prime membership — which you likely already pay for separately. The Store Card has no annual fee at all. The real question is whether the cash back you earn will be more than what you'd earn with a different card, or whether the restrictions on where you can use the card will lock you into shopping at Amazon when a competitor might be cheaper.
Key Takeaways
- The Amazon Prime Rewards card gives 5% cash back on Amazon purchases and Prime-may be able to access Whole Foods buys, but only if you're already paying for Prime membership.
- The Store Card gives higher cash back rates at Amazon and Whole Foods but cannot be used anywhere else, which limits its usefulness.
- Both cards offer lower cash back rates (1% to 2%) on purchases outside Amazon and Whole Foods, making them weaker choices for everyday spending.
- A flat-rate cash back card from another issuer may earn you more money if you don't spend the majority of your card purchases at Amazon.
- Amazon's promotional financing offers (like 12 months no interest) explore only to the Store Card and only for purchases over a certain amount.
How the two Amazon cards compare
The Amazon Prime Rewards Visa Signature Card earns 5% cash back on Amazon.com purchases and Prime-may be able to access Whole Foods purchases, 2% cash back at gas stations, restaurants, and drugstores, and 1% cash back on everything else. You need an active Prime membership to hold this card, but there is no separate annual fee beyond what you already pay for Prime.
The Amazon Prime Store Card earns 5% cash back at Amazon and Whole Foods, but 0% cash back everywhere else. This card has no annual fee and no Prime membership requirement, but it can only be used at Amazon.com, Amazon Fresh, Whole Foods, and the Amazon app. You cannot use it at other retailers.
If you spend most of your money outside Amazon — groceries at other stores, gas, restaurants, everyday shopping — the Store Card becomes nearly useless for cash back. The Prime Rewards card at least gives you 2% back at gas stations and restaurants, which adds up over time.
When the 5% cash back actually matters
The 5% cash back sounds generous, but it only applies to Amazon purchases and Whole Foods. If you spend $200 a month on Amazon, that's $120 a year in cash back — which is roughly what a Prime membership costs. If you spend less than that, you're paying more in Prime fees than you're earning back.
Whole Foods cash back is limited to Prime-may be able to access items, which excludes alcohol, prepared foods, and some other categories. Check your receipt to see what percentage of your Whole Foods spending actually qualifies.
The 2% cash back on gas, restaurants, and drugstores is useful, but it's not exceptional. Many other cards offer 2% cash back on all purchases with no annual fee or membership requirement. If you're choosing between the Amazon card and a flat-rate card, calculate your actual spending: multiply your monthly Amazon purchases by 0.05, add your monthly gas/restaurant/drugstore spending times 0.02, then subtract your annual Prime cost. Compare that to what you'd earn with a different card.
The Store Card's financing offers and limits
The Store Card offers promotional financing deals that the Prime Rewards card does not — typically 12 months of no interest on purchases over $100 or $150, depending on the promotion running at the time. This can be useful if you're buying an expensive item and want to spread payments over a year without interest charges.
The catch is that this financing is only available through the Store Card, and only at Amazon and Whole Foods. If you need financing for a purchase elsewhere, you'd need a different card. Also, if you miss a payment or don't pay off the balance before the promotional period ends, you'll owe interest retroactively on the full amount — sometimes at rates above 20%.
How Amazon cards compare to other rewards cards
A flat-rate cash back card — one that gives the same percentage back on all purchases — typically offers 1.5% to 2% cash back with no annual fee and no membership requirement. Over a year, if you spend $10,000 on the card, you'd earn $150 to $200 in cash back.
With the Amazon Prime Rewards card, the same $10,000 in spending might break down as $6,000 at Amazon (earning 5%, or $300), $2,000 at gas/restaurants/drugstores (earning 2%, or $40), and $2,000 elsewhere (earning 1%, or $20), for a total of $360 — but only if you're already paying for Prime. If you subtract the Prime membership cost (roughly $120 a year), your net gain is $240, which is still better than the flat-rate card in this scenario. But if your spending pattern is different — say, only $2,000 a year at Amazon — the flat-rate card wins.
A category-based card that offers 3% to 5% back in specific categories (groceries, gas, restaurants) might beat the Amazon card if those categories match your actual spending. The trade-off is that you have to remember which card to use for which purchase, and many category cards have annual fees.
Red flags and common mistakes
The biggest mistake is signing up for the Prime Rewards card thinking it will pay for your Prime membership. It won't, unless you spend at least $2,400 a year on Amazon and Whole Foods combined. Many people sign up, earn a small amount of cash back, and forget they're carrying a card they don't actively use.
Another mistake is treating the Store Card as a general-purpose card. Because it only works at Amazon and Whole Foods, you'll need a second card for everything else anyway. Carrying two cards to get rewards is more complicated than carrying one flat-rate card.
The promotional financing offer on the Store Card can also trap you. If you charge $1,000 and plan to pay it off in 12 months, but then miss one payment, you'll owe interest on the full $1,000 from the purchase date — not just the missed payment. Read the terms carefully before using the promotional rate.
Frequently Asked Questions
Do I need Prime to use the Amazon Prime Rewards card?
Yes. You must have an active Prime membership to open or hold this card. If you cancel Prime, you should close the card or switch to the Store Card. The card itself has no separate annual fee, but the Prime membership does.
Can I use the Store Card outside of Amazon?
No. The Store Card works only at Amazon.com, Amazon Fresh, Whole Foods, and the Amazon app. You cannot use it at other retailers, which means you'll need a second card for everyday purchases.
What happens if I don't pay off the promotional financing before the period ends?
You'll owe interest on the full purchase amount from the original purchase date, not just the remaining balance. The interest rate is typically 20% or higher. Always set a reminder to pay off the balance before the promotional period expires.
Is the 5% cash back better than other rewards cards?
It depends on your spending. If you spend most of your money at Amazon, 5% is excellent. If you spend most of your money elsewhere, a flat-rate card offering 1.5% to 2% on all purchases might earn you more money overall because you're not restricted to one retailer.
Can I earn cash back on Amazon gift cards?
Yes, you earn the standard cash back rate when you buy gift cards on Amazon. However, you do not earn cash back when you use a gift card to make a purchase.