Amazon Prime Rewards Visa Card Review: 5% Back on Amazon Purchases Exclusively for Prime Members
Best for: Amazon Prime members Amazon Prime Rewards Visa Signature Card
Credit Rating Requirement:
- Exclusively for customers with an eligible Prime membership
- $70 Amazon.com Gift Card instantly upon credit card approval
- 5% back at Amazon and Whole Foods
- 2% back at gas stations, restaurants and drugstores
- 1% back on all other purchases
- No foreign transaction fees
The Amazon Prime Rewards Visa Card is a good all-around rewards card for getting the most value on basic spending needs. It is best fit (and exclusively) for current Amazon Prime customers who can make the most of 5% back on Amazon and Whole Foods purchases, as other cards offer similar rewards on gas and restaurant spending.
What I like about Amazon Prime Rewards Visa Card
Unlimited 5% back on Amazon and Whole Foods purchases -- Earn unlimited 5% back on all Amazon and Whole Foods purchases. Competing bonus rewards cards offer similar rates, but spending is capped. For this card, rewards are earned as points, which generally carry a value of $0.01 apiece. Keep in mind, spending at restaurants, gas stations, and drugstores earns 2% back while other purchases earn 1% back. Cardholders also have several redemption options for points beyond Amazon purchases. For example, cardholders can pay with points immediately for Amazon purchases or redeem for statement credits starting at 2,000 points (worth $20).
Instant $70 sign-up bonus -- The card offers an instant $70 gift card upon credit approval. Generally, sign-up bonuses are dependent on spending levels rather than approval and not instant.
$0 annual fee -- The Amazon Prime Rewards Visa Card is feature-packed, especially since it doesn’t charge an annual fee.
No foreign transaction fees -- Take this card overseas with confidence. The card doesn’t charge a foreign transaction fee, whereas other cards frequently charge a 3% foreign transaction fee. On $2,000 of annual spending, no transaction fees save cardholders $60 per year.
What could be improved
0% intro APR offer -- Cardholders wanting a 0% introductory offer for a large new purchase or balance transfers may not find this card valuable. Check out our picks of the best 0% intro APR credit cards if this is a must-have perk.
Balance transfer fees -- The card carries a transfer fee of $5 or 5%, whichever is greater. Most balance-transfer credit cards charge a lower $5 or 3% fee. Indebted cardholders should likely look elsewhere if focused on paying down debt.
How to best use
- As we believe is best with credit cards, this one is best paid in full each month. Interest on balances will rapidly pile up faster than rewards earned on spending. Paying off the statement balance in full each month will avoid interest charges.
- Set this card up as the default card in an Amazon account to ensure the 5% bonus is maximized. It may be a good card to use for purchases at restaurants, drugstores, and gas stations, as well, given its 2% back rate.
- To stretch rewards, consider using this card for bonus-category purchases in tandem with a flat-rate cash-back card for all other purchases. Some competing cards double this cards 1% back base rate. Of course, using this strategy all comes down to how important the incremental rewards are for you, given the additional complexity of carrying another card in your wallet and managing your finances.
Other cards to consider
How to secure a $150 sign-up bonus and 3% cash back on gas
Some cardholders may prefer the Bank of America® Cash Rewards credit card for the fact that it offers a bigger sign-up for qualifying new cardholders and a higher rate of 3% cash back on gas. But keep in mind that gas and 2% cash back at grocery stores and at wholesale clubs are capped on the first $2,500 of combined spending per quarter. The card’s 0% intro APR also amps up the cards versatility. What’s more, existing Bank of America customers can score increase rewards by 25% to 75%, depending on Preferred Rewards banking status. That works out to a yield of up to 5.25% for gas (albeit capped) at the highest tier, which may be unmatched with $0 annual-fee cards on the market. Read our full Bank of America® Cash Rewards credit card review to learn more.
Double the Amazon cash back up to 10%
Discover it® Cash Back is a popular card among Amazon shoppers, among others. That's because the card offers up to 10% cash back in the first year! Cardholders always earn 5% cash back at different places each quarter like gas stations, grocery stores, restaurants, Amazon.com, or wholesale clubs up to the quarterly maximum ($1,500 of spending) each time you activate, and 1% on all other purchases. But the big rewards are harvested in year one where Discover doubles all the cash back, yielding cardholder as much as 10% cash back in bonus categories. Read our full Discover it® Cash Back review to learn more.
The real perk is unlimited 5% back on Amazon and Whole Foods purchases as its 2% rewards rate on restaurants, gas, and drugstores can be duplicated by other cards. Weighing slightly on our enthusiasm is the fact that it doesn’t have a 0% intro APR and carries higher-than-average balance transfer fees. Some cardholders consider these perks to be a must-have, and some don’t, but I can always hope for best-in-class perks across the board in one card. Regardless, this card may be as good as they come for Amazon fans.