The Amazon credit card has no annual fee, regardless of which version you choose

Amazon offers two main credit cards through Chase: the Amazon Prime Rewards Visa Signature Card and the Amazon Rewards Visa Card. Neither one charges an annual fee. You pay nothing just to hold the card, whether you use it or not. This is true even if you cancel and reopen the card later.

The trade-off is in the rewards structure. The Prime card requires an active Amazon Prime membership to earn the highest cash-back rates (5% on Amazon purchases, 2% at gas stations and restaurants, 1% elsewhere). If you don't have Prime, you get 3% back on Amazon purchases instead. The standard Amazon card offers 3% cash back on Amazon and Whole Foods purchases, and 1% on everything else. Both cards are free to own.

Key Takeaways

  • Neither Amazon credit card charges an annual fee, so there is no yearly cost to carry the card.
  • The Amazon Prime card requires an active Prime membership to unlock its best rewards rates, but the card itself costs nothing.
  • You can hold both cards at the same time without paying fees on either one.
  • Closing and reopening an Amazon card later will not trigger a fee, though Chase may review your account history.

How the two Amazon cards differ in rewards, not fees

The Amazon Prime Rewards Visa Signature Card is designed for people who already pay for Prime membership. It gives you 5% cash back on Amazon.com purchases, 2% at gas stations and restaurants, and 1% on everything else. You need an active Prime membership to get the 5% rate. If your Prime membership lapses, your cash back on Amazon purchases drops to 3% until you renew.

The Amazon Rewards Visa Card is the no-membership version. It offers 3% cash back on Amazon and Whole Foods purchases and 1% on all other purchases. This card has no membership requirement and no annual fee. It's useful if you shop on Amazon regularly but don't want to pay for Prime.

Both cards offer the same perks beyond cash back: extended return windows on Amazon purchases, purchase protection, and fraud liability protection. Neither charges an annual fee.

What you might pay instead of an annual fee

While the card itself is free, you may pay money in other ways. If you hold the Prime card, you're likely paying for an Amazon Prime membership separately—that's $139 per year for the standard plan, or $14.99 per month if you pay monthly. The Prime membership itself is not a card fee, but it's a cost tied to using the card's best features.

You could also pay interest if you carry a balance. Both cards charge variable interest rates (the APR changes based on market conditions and your creditworthiness). If you don't pay your full balance each month, you'll owe interest on the remaining amount. This is not a fee—it's interest—but it's a real cost.

Late payments trigger a late fee, typically $25 to $40 depending on how late you are. Again, this is not an annual fee; it only happens if you miss a payment important date.

Comparing the Amazon card to other retail credit cards

Most retail credit cards, including those from Target, Walmart, and Best Buy, also have no annual fee. The pattern in retail cards is to make money through interest charges and interchange fees (what merchants pay when you swipe), not by charging cardholders yearly.

Premium travel cards and business cards often do charge annual fees—sometimes $95, $250, or higher—because they offer concierge services, travel credits, or other perks that cost the issuer money. Amazon's cards don't include those extras, so there's no annual fee to justify.

What happens if you close and reopen your Amazon card

Closing an Amazon card and reoping it later will not cost you an annual fee. However, Chase may limit how often you can open new cards or may deny you if you've closed and reopened the same card too many times in a short period. This is a business decision by Chase, not a fee structure.

If you're thinking about closing the card to avoid interest charges or because you're not using it, closing it won't hurt you financially—there's no penalty. But closing a credit card does lower your total available credit, which can slightly raise your credit utilization ratio (the amount you owe divided by your total credit limit). A higher utilization ratio can lower your credit score a bit.

How to avoid unexpected charges on your Amazon card

To keep your Amazon card truly free, pay your full statement balance by the due date each month. This avoids interest charges. Set up automatic payments if you tend to forget important date—you can choose to pay the full balance automatically, or a fixed amount, or the minimum (though paying only the minimum means you'll owe interest).

If you have the Prime card, make sure your Prime membership stays active if you want the 5% cash-back rate. You can check your membership status in your Amazon account under "Your Memberships and Subscriptions." If Prime lapses, you'll still earn 3% on Amazon purchases, but you'll lose the higher rate.

Watch for promotional offers that come with the card. Amazon sometimes offers bonus cash back for new cardholders (for example, $100 back after you spend $500 in the first three months). These are not fees; they're rewards. Read the terms to understand when the bonus posts and what spending counts toward it.

Frequently Asked Questions

Do I have to pay an annual fee to keep the Amazon card open?

No. Both the Amazon Prime card and the standard Amazon card have no annual fee. You can hold the card indefinitely without paying anything, even if you never use it.

What if I don't have Amazon Prime—can I still get an Amazon card without a fee?

Yes. The Amazon Rewards Visa Card requires no Prime membership and has no annual fee. You'll earn 3% cash back on Amazon and Whole Foods purchases instead of the 5% the Prime card offers, but the card itself costs nothing.

Will I be charged a fee if I close my Amazon card?

No. Closing the card is free. There is no cancellation fee or closure fee. However, closing a card does lower your available credit, which can slightly affect your credit score.

Does the Amazon card charge a fee if I carry a balance?

The card itself has no fee, but you will owe interest if you don't pay your full balance by the due date. Interest is not a fee—it's a charge on the money you borrowed. The interest rate varies based on your creditworthiness and current market rates.

Can I get the 5% cash-back rate without paying for Prime?

No. The 5% rate on the Prime card is only available to active Prime members. If you don't have Prime or your membership lapses, you earn 3% on Amazon purchases instead. The standard Amazon card offers 3% without requiring a membership.