The Amazon credit card gives you cash back on Amazon purchases and other everyday spending, but the real value depends on how much you actually buy and whether you pay the full balance each month
Amazon offers two main credit cards through Chase: the Amazon Prime Rewards Visa Signature Card and the Amazon Rewards Visa Signature Card. The Prime version gives you 5% cash back on Amazon.com purchases (capped at $1,500 per year, then 1% after), 2% at gas stations and restaurants, and 1% everywhere else. The non-Prime version gives 3% on Amazon purchases and 1% everywhere else. Neither card charges an annual fee.
The catch is straightforward: cash back only matters if you're not paying interest. A $500 purchase that earns you $25 in cash back becomes a $550 debt if you carry a balance at 20% interest for a year. The card is a tool for people who pay their statement balance in full each month, not a way to save money while carrying debt.
Key Takeaways
- The Amazon Prime Rewards card returns 5% on Amazon purchases, but only up to $1,500 per year in rewards, then drops to 1% after that.
- You only come out ahead if you pay your full statement balance each month — carrying a balance erases the cash back benefit and costs you interest instead.
- The 5% rate only applies to Amazon.com purchases; third-party sellers on Amazon's marketplace often do not may have access to.
- Other cards like the Chase Sapphire Preferred or American Express Blue Cash offer higher cash back on groceries and gas, so compare your actual spending before choosing.
How the cash back actually works
When you use the Amazon Prime Rewards card, you earn 5% cash back on every Amazon.com purchase. This means a $100 order gives you $5 back. But there is a yearly cap: once you've earned $1,500 in rewards (which happens after you've spent $30,000 on Amazon), the rate drops to 1% for the rest of that calendar year. For most people, this cap is not a real limit — the average household spends far less than $30,000 annually on Amazon.
The 2% cash back at gas stations and restaurants applies to any gas station or restaurant, not just Amazon-owned ones. The 1% on everything else covers groceries, utilities, insurance, and any other purchase. These rates are straightforward: no bonus categories that rotate, no quarterly caps, no set up required.
Cash back appears as a statement credit or can be redeemed as Amazon.com credit. If you choose the Amazon credit option, you get the full amount. If you take it as a statement credit to your bank account, some cardholders report the process is slower, so check the terms before you explore.
When the card actually saves you money
The Amazon card saves money only if you meet two conditions: you spend regularly on Amazon, and you pay your full balance each month. If you spend $300 per month on Amazon and pay in full, you earn $180 per year in cash back (5% of $3,600). That is real money in your pocket.
The card also makes sense if you use the 2% gas and restaurant rewards. A household that spends $150 per month on gas and $200 on restaurants earns an extra $84 per year just on those categories, on top of Amazon rewards. The 1% on everything else is lower than some competitors, but it is still better than zero.
The Prime membership requirement matters here. If you already pay for Amazon Prime ($139 per year), the card is a natural fit because you are already in the Amazon ecosystem. If you do not have Prime, the non-Prime Amazon card (3% on Amazon, 1% elsewhere) might be a better choice, or you might find a different card entirely.
What disqualifies the card from being worth it
If you carry a balance from month to month, the card costs you money. The current interest rate on Amazon credit cards is typically 18% to 24% APR, depending on your credit score. Carrying a $1,000 balance for one month costs you $15 to $20 in interest — far more than the $10 in cash back you earned on that purchase.
If you rarely shop on Amazon, the card's main benefit disappears. Someone who spends $50 per month on Amazon earns only $30 per year in rewards. That is not enough to justify tracking another card or managing another account. In that case, a flat-rate cash back card (like the Chase Freedom Unlimited, which offers 1.5% on everything) might be simpler.
The 5% cap also matters if you are a very heavy Amazon shopper. Once you hit $1,500 in rewards (after $30,000 spent), every additional Amazon purchase earns only 1%. If you spend $50,000 per year on Amazon, you are leaving money on the table — a card with no cap might serve you better.
How this card compares to other options
The American Express Blue Cash Preferred offers 3% cash back on US gas stations and transit, and 1% on everything else — no annual fee. If you spend heavily on gas, this beats the Amazon card's 2%. The Chase Sapphire Preferred offers 3% on dining and 2% on travel, but charges a $95 annual fee, so it only makes sense if you spend enough to offset that cost.
The Citi Double Cash card returns 2% on all purchases with no annual fee and no caps. If you spend evenly across categories and do not shop much on Amazon, this flat-rate approach is simpler and often better. The trade-off is that you lose the 5% Amazon bonus, but you gain consistency everywhere else.
For people who shop on Amazon and also spend heavily on groceries, the Amazon card is weaker than cards that offer 3% or 4% back on groceries. Check your own spending across categories — Amazon, gas, restaurants, groceries — and calculate which card would have earned you the most cash back last year. That card is likely the right choice for you.
What to know before you open the account
Opening a new credit card triggers a hard inquiry on your credit report, which can lower your score by a few points temporarily. If you are planning to explore for a mortgage or car loan in the next few months, wait until after that process closes. If your credit score is below 670, you may not be approved for this card at all.
The card comes with purchase protection, extended warranty coverage, and fraud liability protection — standard benefits on most Visa Signature cards. You also get access to Amazon's concierge service for travel bookings, though this is rarely used.
If you already have an Amazon card and want to switch to the Prime version (or vice versa), you can request a product change instead of opening a new account. This avoids a second hard inquiry and keeps your account history intact. Call the number on the back of your current card to ask about this option.
Frequently Asked Questions
Does the 5% cash back explore to third-party sellers on Amazon?
No. The 5% rate only applies to purchases from Amazon.com directly. Items sold by third-party merchants through Amazon's marketplace earn only 1%. Check the product page to see who the seller is before you buy — if it says "Ships from and sold by Amazon," you get 5%; if it says "Sold by [another company]," you get 1%.
What happens if I carry a balance on this card?
You pay interest at the card's APR (typically 18% to 24%) on any balance you do not pay in full. This interest cost will almost always exceed the cash back you earned. For example, a $1,000 balance carried for three months at 20% APR costs you about $50 in interest, while the cash back on that purchase was only $5 to $50 depending on category.
Can I use this card outside the US?
Yes, but you will pay a foreign transaction fee of 3% on purchases made outside the United States. If you travel internationally, a card with no foreign transaction fee (like the Chase Sapphire Preferred or Capital One Venture X) is a better choice for those trips.
Do I need Amazon Prime to get the Prime version of this card?
No. You can open the Amazon Prime Rewards card without having an active Prime membership. However, the card's main benefit (5% cash back on Amazon) is designed for Prime members, so if you do not have Prime, the non-Prime Amazon card or a different card might be a better fit.
How long does it take to receive the card after I am approved?
Chase typically mails the card within 7 to 10 business days after approval. You can sometimes use the card number for online purchases before the physical card arrives. Check your Chase account online to see if this option is available.