Amazon's credit cards give you cash back on purchases, but the rewards structure and card type matter more than the headline rate

Amazon offers two main credit cards through Chase: the Amazon Prime Rewards Visa Signature Card and the Amazon Prime Store Card. The Prime Rewards card works everywhere and gives you 5% cash back on Amazon purchases and Whole Foods spending (if you're a Prime member), 2% at gas stations and restaurants, and 1% everywhere else. The Store Card only works at Amazon and Whole Foods, but gives you 5% cash back on those purchases with no annual fee. Neither card charges an annual fee if you're a Prime member on the Rewards card, though the Store Card has no fee regardless.

The real decision isn't whether to get one — it's whether the cash back rate matches how you actually spend money. If you buy most things on Amazon and rarely shop elsewhere, the Store Card makes sense. If you spread spending across multiple retailers, the Rewards card's 2% at restaurants and gas stations might save you more than a flat 1% card, but only if you use those categories regularly. The catch is that both cards require you to track your spending to know whether you're actually coming out ahead.

Key Takeaways

  • The Amazon Prime Rewards card gives 5% cash back on Amazon and Whole Foods purchases, 2% at gas and restaurants, and 1% elsewhere, with no annual fee for Prime members.
  • The Amazon Prime Store Card gives 5% cash back only at Amazon and Whole Foods, has no annual fee, and works only at those retailers.
  • Cash back rates matter less than your actual spending pattern — a 5% card is only valuable if you spend money in that category regularly.
  • Both cards report to the three major credit bureaus, so they can help build credit history if you pay the balance in full each month.

How the cash back actually works

Cash back posts to your Amazon account as a statement credit, not as cash you can withdraw or transfer. This means you can only use it to pay down your Amazon balance or buy things on Amazon. If you want cash back you can spend anywhere, this card won't give it to you — you'd need a different card from a different issuer.

The 5% rate on Amazon purchases applies to physical items and digital content, but not to third-party seller fees, gift cards, or Amazon Fresh grocery orders. The 2% rate at restaurants and gas stations only applies if you use the card directly at the pump or at the restaurant — not if you buy a gift card first. These limits matter if you're counting on specific purchases to hit the higher rate.

Cash back accrues monthly and appears as a statement credit automatically. You don't have to do anything to claim it, and there's no cap on how much you can earn in a year.

When the Rewards card makes financial sense

The Rewards card saves you money if you spend enough in the 2% and 5% categories to offset the card's opportunity cost. If you spend $500 a month on Amazon, $200 at restaurants, and $150 at gas stations, you're earning roughly $40 a month in cash back — $480 a year. That's real money, but only if you would have made those purchases anyway and only if you pay the full balance each month.

If you carry a balance, the interest rate (currently around 20% APR, though this varies) wipes out years of cash back earnings in a single month. The card only makes sense if you treat it like a debit card — spend what you have, pay it off when ready, and use the cash back as a bonus on spending you were going to do anyway.

The card also includes purchase protection, extended warranty coverage, and travel benefits like trip cancellation insurance. These are secondary benefits that rarely matter in practice, but they're there if you need them.

The Store Card and when to use it instead

The Store Card is simpler: 5% cash back at Amazon and Whole Foods, nothing else. It has no annual fee and no Prime membership requirement. If you buy almost everything on Amazon and rarely shop elsewhere, this card gives you the same 5% rate as the Rewards card without the complexity of tracking multiple categories.

The downside is that it only works at Amazon and Whole Foods. If you want to use a credit card at a grocery store, pharmacy, or restaurant, you need a different card. Some people carry both — the Store Card for Amazon and a different card for everything else — but that adds complexity and requires tracking multiple balances.

The Store Card also has promotional financing offers (0% APR for a set period on large purchases), which the Rewards card doesn't always have. If you're planning a big Amazon purchase and can pay it off within the promotional period, this can save you interest.

How these cards affect your credit

Both cards report to Equifax, Experian, and TransUnion, so they show up on your credit report and factor into your credit score. Opening a new card temporarily lowers your score by a few points (the hard inquiry and new account), but paying the balance in full each month builds positive payment history, which is the single largest factor in your score.

If you already have several credit cards, adding another one increases your total available credit, which can lower your credit utilization ratio and help your score over time. If you're just starting to build credit, a single card is usually enough — adding multiple cards at once can hurt more than it helps.

Missing a payment or carrying a high balance will damage your score far more than any cash back will repair it. The card only helps your credit if you use it responsibly.

Comparing this card to other cash back options

Other cards offer different cash back structures. The Chase Freedom Unlimited gives 1.5% cash back on everything with no annual fee and no category limits. The Citi Double Cash gives 2% cash back on all purchases (1% when you buy, 1% when you pay). These cards give you cash back as actual cash that you can transfer to a bank account or use anywhere, not just at Amazon.

If you don't spend much on Amazon, one of these flat-rate cards might save you more money than the Amazon card's higher rates in specific categories. The math depends on your actual spending: if you spend $2,000 a year on Amazon and $8,000 everywhere else, the 1.5% flat card might beat the Amazon card's blended rate.

The Amazon card only wins if your spending is heavily weighted toward Amazon and Whole Foods. If you're a light Amazon user, a flat-rate card is simpler and probably pays more.

Annual fees and hidden costs

The Rewards card has no annual fee if you're a Prime member. If you're not a Prime member, the card costs $39 a year. Prime membership itself costs $139 a year (or $14.99 a month), so the card is only free if you're already paying for Prime for other reasons. If you're considering Prime just to avoid the card fee, the math doesn't work — you'd spend $139 to save $39.

The Store Card has no annual fee regardless of Prime membership. There are no other hidden fees — no foreign transaction fees, no inactivity fees, nothing. The only cost is the interest rate if you carry a balance.

Both cards have the same interest rate structure as other Chase cards, so there's no penalty for choosing Amazon over another issuer in that regard.

Frequently Asked Questions

Can I use the Amazon credit card outside the US?

The Rewards card works internationally and has no foreign transaction fees, which is unusual for a cash back card. The Store Card only works at Amazon.com and Whole Foods locations, so it won't work at international retailers. If you travel frequently, the Rewards card is more useful.

What happens to my cash back if I close the card?

Any cash back you've already earned stays in your Amazon account as a statement credit and doesn't disappear. You can use it to pay down your balance or buy things on Amazon even after you close the card. New purchases won't earn cash back once the card is closed.

Do I need to be a Prime member to get the card?

You don't need Prime to get the Store Card. For the Rewards card, you need Prime to avoid the $39 annual fee, but you can open the card without Prime and pay the fee. Most people who want the Rewards card are already Prime members anyway.

How does the cash back compare to just buying Amazon gift cards on sale?

Amazon occasionally discounts gift cards (usually 5-10% off during promotional periods), which is a one-time savings. The credit card gives you 5% back on every purchase, every time. Over a year, the card usually comes out ahead, but you have to actually use it regularly for the math to work.

Can I transfer my cash back to another card or bank account?

No. Cash back only appears as a statement credit on your Amazon account. You can't move it to another card, transfer it to a bank account, or convert it to actual cash. This is a significant limitation if you want flexibility with your rewards.