The Amazon credit card has no annual fee

The Amazon Prime Rewards Visa Signature Card and the Amazon Prime Store Card both charge zero dollars per year to hold them. You pay nothing to open the account, nothing to keep it open, and nothing if you never use it. There is no hidden annual fee that appears after a trial period.

The only Amazon-branded card with an annual fee is the Amazon Business Prime Rewards Visa Card, which costs $99 per year — but that card is designed for business owners, not individual shoppers, and comes with a separate set of rewards.

If you are comparing the Amazon card to other rewards cards, the lack of an annual fee is one of its main selling points. Many premium credit cards charge $95 to $550 per year. The Amazon card charges nothing and still offers cash back on purchases.

Key Takeaways

  • Both the Amazon Prime Rewards Visa Signature Card and the Amazon Prime Store Card have no annual fee.
  • You will never be charged a yearly amount just for holding the card, even if you do not use it.
  • The Amazon Business Prime Rewards Visa Card does charge $99 per year, but it is only for business accounts.
  • No annual fee means you can keep the card open without cost, even if you stop using it for a period of time.

How the Amazon Prime Rewards Card works without an annual fee

The card makes money for Amazon and the bank through interchange fees — the small percentage the store pays when you swipe your card. Because Amazon owns both the card and the store, they benefit from both sides of the transaction. That business model lets them skip the annual fee that other card issuers charge.

You do not need to be an Amazon Prime member to open the card, though Prime members get higher cash-back rates. If you are not a Prime member, you still get 1% cash back on most purchases and 3% on Amazon.com purchases. Prime members get 3% back on Amazon purchases and 2% at gas stations, restaurants, and drugstores.

The card is issued by Chase, which handles the account, billing, and customer service. Your statements come from Chase, and you log in through Chase's website or app to manage the card.

What happens if you close the card later

If you decide the card is not for you, you can close it at any time with no penalty. There is no fee for closing the account, and you do not owe anything beyond your current balance.

Closing a credit card can lower your credit score slightly because it reduces your total available credit and may raise your credit utilization ratio on other cards. But there is no financial penalty from the card issuer itself. You straightforward call the number on the back of the card or log into your Chase account and request closure.

The Amazon Store Card: a different card, also no annual fee

Amazon also offers the Amazon Prime Store Card, which works only at Amazon.com and Amazon-owned stores like Whole Foods. This card also has no annual fee. It offers 5% cash back on Amazon purchases for Prime members and 3% for non-members.

The Store Card is easier to open than the Visa card — the approval process is faster and the credit requirements are often lower. The trade-off is that you can only use it at Amazon properties. If you want a card that works everywhere, the Visa card is the better choice.

Comparing the Amazon card to other no-fee cards

Many banks offer credit cards with no annual fee, so the Amazon card is not alone. The difference is in the rewards rate and where you earn the most cash back. A basic no-fee card from your bank might offer 1% cash back on everything. The Amazon card offers higher rates at Amazon and at specific merchant categories like gas and restaurants.

If you rarely shop at Amazon, a different card might give you better rewards. If you shop at Amazon regularly and are a Prime member, the 3% cash back on Amazon purchases often beats what you would earn elsewhere. The no annual fee means there is no cost to keeping both cards open and using each one where it rewards you best.

What to watch for when you open the card

When you open an Amazon credit card, read the terms carefully to confirm the annual fee is listed as $0. Card terms can change, and Amazon has updated its card offerings before. The current versions of both the Prime Rewards Visa and the Store Card show no annual fee in their terms.

Some promotional offers come with a sign-up bonus — for example, a cash-back bonus if you spend a certain amount in the first three months. These bonuses are separate from the annual fee and are not may provide to be available at all times. Check the current offer when you are ready to open the card.

If you already hold an Amazon card and want to confirm your annual fee status, log into your Chase account or call the number on the back of your card. Your statement will also show any annual fees as a separate line item.

Frequently Asked Questions

Does the Amazon card charge a fee if I do not use it?

No. There is no annual fee whether you use the card every day or never use it at all. You can keep it open in a drawer and pay nothing. Some cards charge an inactivity fee, but the Amazon cards do not.

Is there a fee to add an authorized user to my Amazon card?

No. Adding an authorized user — such as a spouse or family member — costs nothing. You can add or remove authorized users anytime through your Chase account online.

What if I miss a payment — will I be charged a fee?

Yes, but this is not an annual fee. A late payment fee applies if you miss your due date, typically $25 to $35 depending on your account history. You will also pay interest on your balance. The annual fee itself remains zero.

Can I downgrade to a different Amazon card to avoid an annual fee?

Both main Amazon cards have no annual fee, so there is nothing to downgrade from. If you hold the Amazon Business card ($99 per year) and want to switch to the consumer Prime Rewards card, you can request a product change through Chase, though they may close the old account and open a new one instead.

Do I have to be a Prime member to avoid the annual fee?

No. The card has no annual fee whether you are a Prime member or not. Prime membership is separate and costs $139 per year (or $14.99 per month). You can hold the Amazon card without Prime and pay zero annual fees.