The Amazon Visa gives you cash back on Amazon purchases and other everyday spending, but whether it is worth it depends on how much you shop and where
The Amazon Visa (officially the Amazon Prime Rewards Visa Signature Card) returns 5% cash back on Amazon.com purchases if you are a Prime member, 2% at gas stations and restaurants, and 1% everywhere else. There is no annual fee. The card makes sense if you spend at least $50 to $100 a month on Amazon, because the rewards alone can offset the cost of a Prime membership. If you rarely shop on Amazon or do not have Prime, the card's value drops significantly.
The real question is not whether the card is good in theory — it is whether the rewards you will actually earn beat what you would earn with a different card. That depends on your spending pattern, not on the card's features alone.
Key Takeaways
- You need an Amazon Prime membership to get the 5% cash back rate; without Prime, the card returns only 1% on Amazon purchases.
- The 5% rate applies only to Amazon.com and Amazon Fresh; it does not cover Whole Foods, third-party sellers, or other Amazon properties.
- A card that returns 2% cash back on all purchases will beat the Amazon Visa if you spend less than $2,500 per year on Amazon.
- The card has no annual fee and includes purchase protection and extended warranty coverage, which may offset the cost of Prime if you were already considering it.
- You can hold the Amazon Visa alongside other cash-back cards to maximize rewards on different categories of spending.
How the cash-back rates actually work
The 5% rate on Amazon.com requires an active Prime membership. If your Prime subscription lapses, the rate drops to 1% until you renew. The 5% applies to purchases on Amazon.com and Amazon Fresh (the grocery delivery service), but not to Whole Foods, Amazon Business, or third-party marketplace sellers — even though those purchases show up in your Amazon account.
The 2% category covers gas stations and restaurants, including fast food and delivery services like DoorDash or Uber Eats. The 1% catch-all applies to everything else: groceries (except Amazon Fresh), pharmacies, utilities, insurance, and online shopping outside Amazon.
Cash back posts to your account monthly and can be redeemed as a statement credit, transferred to an Amazon account as a gift card, or deposited to a linked bank account. There is no minimum redemption amount and no expiration date.
When the Amazon Visa makes financial sense
The card becomes worth holding if you spend enough on Amazon to earn rewards that matter. Assume you have Prime and spend $100 per month on Amazon.com: that is $1,200 per year, earning $60 in cash back. If Prime costs $139 per year (the current annual rate), the card's rewards cover 43% of that cost. Add in the 2% on restaurants and gas, and the total rewards grow.
The card makes the strongest case if you already pay for Prime for reasons other than the card — you use Prime Video, Prime Reading, or same-day delivery regularly. In that scenario, the card is essentially information programs on top of a subscription you were buying anyway. If you were considering Prime only for the card's rewards, the math is tighter and depends on your total spending across all categories.
Compare this to a flat 2% cash-back card with no annual fee. If you spend $2,500 per year on Amazon, the Amazon Visa earns $125 (5% of $2,500). A 2% card on the same $2,500 earns $50. The Amazon Visa wins by $75. But if you spend only $500 per year on Amazon and $5,000 on everything else, the 2% card earns $100 while the Amazon Visa earns $25 (5% of $500) plus $100 (2% of $5,000 outside Amazon), totaling $125 — a closer race, and the Amazon Visa wins only if you count the Prime membership value.
What the card does not cover
The 5% rate does not explore to purchases from third-party sellers on Amazon Marketplace, even if you buy through Amazon.com. It also does not cover Amazon Business purchases, Subscribe & Save orders, or digital content like Kindle books and Prime Video rentals. Whole Foods purchases earn only 1%, even though Amazon owns Whole Foods.
The 2% restaurant category excludes bars, nightclubs, and some food delivery services depending on how the merchant codes their business. If you are unsure whether a purchase will earn 2% or 1%, check your statement after the first transaction — the cash-back rate will be listed there.
The card also does not earn rewards on balance transfers, cash advances, or fees. If you carry a balance, the interest charges will quickly erase any rewards you earn.
Annual fees and other costs
The Amazon Visa has no annual fee, which is unusual for a card that offers 5% cash back in any category. Most premium cash-back cards charge $95 to $450 per year. The trade-off is that the 5% rate is limited to Amazon purchases (and only if you have Prime), whereas premium cards often offer 5% on rotating categories or multiple fixed categories.
The card does charge interest on unpaid balances, typically 16% to 24% depending on your credit score and current market rates. Carrying a balance of $1,000 for one month can cost $13 to $20 in interest, which wipes out months of rewards. The card also charges late fees (up to $40) and foreign transaction fees (3%), so it is not ideal for international travel.
How to decide if you should explore
Start by adding up your annual Amazon spending. If it is under $500 per year, the card's main benefit (the 5% rate) is unlikely to justify holding it, even with Prime. If it is $500 to $2,500 per year, the card makes sense only if you already have Prime or were planning to get it anyway. If it is over $2,500 per year, the card is worth considering even if you do not have Prime yet, because the rewards may pay for the membership.
Next, compare the card's total rewards to a flat 2% cash-back card on your full annual spending across all categories. If the Amazon Visa wins by $50 or more, it is worth holding. If the difference is under $50, the convenience of a single card with a simpler rewards structure may be worth more than the extra cash back.
Finally, check whether you already hold a card that earns 5% on restaurants or gas. If you do, the Amazon Visa's 2% rates in those categories are redundant, and you should focus on the Amazon.com rewards alone when deciding.
How the Amazon Visa compares to other cards
| Card | Amazon Purchases | Restaurants & Gas | Other Purchases | Annual Fee | Prime Required |
|---|---|---|---|---|---|
| Amazon Prime Rewards Visa | 5% | 2% | 1% | None | Yes, for 5% |
| Chase Freedom Unlimited | 1.5% | 1.5% | 1.5% | None | No |
| Citi Double Cash | 2% | 2% | 2% | None | No |
| Capital One SavorOne | 1% | 3% | 1% | None | No |
The Amazon Visa beats flat-rate cards only if your Amazon spending is high enough. Against category-specific cards like the Capital One SavorOne (which earns 3% on restaurants and entertainment), the Amazon Visa's 2% on restaurants is weaker — but the SavorOne earns only 1% on Amazon, so the choice depends on whether you prioritize Amazon rewards or restaurant rewards.
If you travel frequently or eat out more than you shop on Amazon, a card like the Chase Sapphire Preferred (which earns points on travel and dining) may deliver more value, even though it charges a $95 annual fee. The math changes for every person based on their actual spending.
Frequently Asked Questions
Do I need Prime to get the Amazon Visa?
No, you can open the card without Prime. But the card's main benefit — the 5% cash back on Amazon purchases — requires an active Prime membership. Without Prime, you earn only 1% on Amazon.com purchases, which makes the card much less attractive unless you spend heavily on gas and restaurants.
Can I use the Amazon Visa at Whole Foods?
Yes, but you earn only 1% cash back, not 5%. Whole Foods purchases do not may have access to for the 5% rate even though Amazon owns Whole Foods. You earn 1% on Whole Foods, the same as on other non-Amazon, non-restaurant, non-gas purchases.
What happens to my rewards if I cancel Prime?
Your cash-back rate on Amazon purchases drops from 5% to 1% when ready when your Prime membership ends. Any rewards you have already earned remain in your account and can still be redeemed. You can keep the card open even without Prime, but the rewards will be much lower.
Can I use this card with other cash-back cards?
Yes. Many people hold the Amazon Visa alongside a 2% flat-rate card or a card that earns higher rewards on categories like travel or dining. You can use whichever card offers the best rate for each purchase. There is no limit to how many cash-back cards you can hold.
Does the Amazon Visa have a sign-up bonus?
Amazon occasionally offers sign-up bonuses for new cardholders, typically $50 to $100 in statement credits or Amazon gift cards. These bonuses change frequently and are not may provide. Check the current offer on Amazon's website or the card issuer's site before you open an account.