The Amazon card gives you cash back on Amazon purchases and gas, plus a sign-up bonus

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 and Whole Foods purchases if you're a Prime member, 2% at gas stations and restaurants, and 1% everywhere else. The standard Amazon card gives you 3% back on Amazon purchases and 1% on everything else. Both cards come with a sign-up bonus — the amount changes, so check the current offer when you look.

The catch is that the Prime card requires an active Prime membership to get the 5% rate. Without Prime, it drops to 3% on Amazon purchases, which makes it identical to the standard card except for the annual fee. The standard card has no annual fee. Both cards charge interest on unpaid balances, and both report to the three credit bureaus, so they affect your credit score the same way any credit card does.

Key Takeaways

  • The Amazon Prime Rewards card pays 5% cash back on Amazon and Whole Foods purchases only if you hold an active Prime membership.
  • Without Prime, the Prime card's 5% benefit disappears and you pay an annual fee for a card that performs worse than the free standard Amazon card.
  • Both cards report to credit bureaus and charge interest on unpaid balances, so carrying a balance erases the cash back value.
  • The sign-up bonus is the largest single reward these cards offer, but the amount varies and changes throughout the year.
  • Cash back is issued as a statement credit or can be redeemed for Amazon purchases, not as direct money to your bank account.

Where you actually earn the 5% back

The 5% rate on the Prime card only applies to purchases made directly on Amazon.com, Amazon Fresh, Amazon Go, and Whole Foods Market locations. It does not cover third-party sellers on Amazon's marketplace, even though you buy through Amazon's site. It does not cover Amazon Prime Video, Prime Music, or other Prime services. It does not cover Amazon Business purchases.

The 2% category covers gas stations, restaurants, and transit (including taxis, parking, trains, and buses). The 1% catch-all applies to everything else — groceries at non-Whole Foods stores, utilities, insurance, online shopping at other retailers. If you spend most of your money outside Amazon and Whole Foods, the card's rewards are thin compared to flat-rate cash back cards that pay 2% on everything.

How the sign-up bonus works

When you open an Amazon card, Chase offers a one-time bonus — typically $50 to $150 in statement credit, though the exact amount varies. You earn this bonus by spending a certain amount within the first few months, usually $100 to $500. The bonus is not automatic; you have to meet the spending requirement to receive it.

The bonus is paid as a statement credit, meaning it reduces your bill rather than appearing as cash in your bank account. You can use it to pay down your balance or to offset future purchases. The bonus does not count toward your cash back rate — it is separate from the ongoing rewards you earn on purchases.

What happens if you carry a balance

The Amazon card charges a variable interest rate on unpaid balances. The rate depends on your credit score and current market conditions, but it typically ranges from 16% to 24% annually. If you carry a $1,000 balance for one month at 20% APR, you pay roughly $17 in interest. That interest wipes out the cash back you earned on $1,700 in Amazon purchases at the 5% rate.

The math is straightforward: cash back only saves you money if you pay the full balance every month. If you plan to carry a balance, the interest charges will exceed any rewards you earn. The card is designed for people who treat it like a debit card — spending money they already have and paying it off in full when the bill arrives.

How the card affects your credit score

Opening an Amazon card triggers a hard inquiry on your credit report, which typically lowers your score by a few points for a few months. The new account itself also lowers your average account age, which is part of how credit scores are calculated. Over time, as you use the card and pay on time, these effects fade.

The card helps your score if you keep your balance low relative to your credit limit — ideally below 10% of the limit. If you max out the card or carry a high balance, your credit utilization ratio climbs and your score drops. Missed payments or late payments damage your score significantly and stay on your report for seven years.

Comparing the Amazon card to other rewards cards

The Prime card's 5% rate on Amazon is strong, but only if you have Prime and spend heavily on Amazon. If you spend $3,000 a year on Amazon, you earn $150 in cash back. A flat-rate 2% card on the same $3,000 earns $60, so the Amazon card wins by $90. But if you also spend $6,000 a year on groceries, gas, and other categories, the flat-rate card earns $120 on those purchases while the Amazon card earns $120 (2% on gas and restaurants, 1% on groceries). The advantage shrinks as your spending diversifies.

Other cards offer higher rates in specific categories: some pay 3% on groceries, others 5% on gas or dining. Some offer rotating categories that change each quarter. The best card for you depends on where you actually spend money. If Amazon is your primary retailer and you have Prime, the Amazon card is competitive. If you shop across many retailers or rarely use Amazon, a different card likely pays more.

How to redeem your cash back

Cash back on the Amazon card is automatically applied as a statement credit each month. You do not have to do anything to claim it. The credit reduces your bill, so if you owe $500 and earn $25 in cash back that month, your new balance is $475.

You can also choose to redeem your cash back as an Amazon.com gift card balance instead of a statement credit. This option is useful if you want to keep the reward separate from your bill or if you prefer to spend it on Amazon rather than reduce your credit card debt. The redemption rate is the same either way — $1 in cash back equals $1 in statement credit or $1 in Amazon balance.

Frequently Asked Questions

Do I need Prime to get the 5% back?

Yes. The 5% rate only applies if you have an active Prime membership. Without Prime, the card pays 3% on Amazon purchases and 1% everywhere else — the same as the standard Amazon card, but with an annual fee. If you do not have Prime, the standard card is the better choice.

Can I use the card outside the US?

Yes, but you will pay a foreign transaction fee of 3% on purchases made outside the US. This fee is added to your bill and is separate from the cash back you earn. If you travel frequently or make international purchases, this cost may outweigh the rewards.

What if I miss a payment?

A missed payment is reported to the credit bureaus and damages your credit score. It also triggers a late fee (typically $25 to $40) and may increase your interest rate. If you miss a payment by 30 days or more, the card issuer may close your account. Pay at least the minimum by the due date to avoid these consequences.

Can I use the sign-up bonus more than once?

No. Chase typically limits the sign-up bonus to once every 24 months per person. If you closed an Amazon card and want to open a new one, you may not be may be able to access for the bonus if you received one in the past two years. Check Chase's current terms before explore.

Does the cash back expire?

No. Cash back does not expire as long as your account remains open. If you close the card, any unredeemed cash back is forfeited, so redeem it before you close the account.