When it comes to online retailers, Amazon is a giant in the industry.
Although Premium visa (See Rates and Fees) While there’s technically no annual fee, one of the caveats is that you must be an Amazon Prime member to qualify. Prime membership costs $139 per year (or $14.99 per month).
It’s hard to assess the value of a Prime membership based solely on the rewards you might get from using the online retailer’s credit card — since the membership includes so many other tangible benefits — but for the sake of argument, we’ll give it a try.
Related: 8 Ways to Save Money on Amazon Orders
Welcome offer
Prime Visa currently offers a $250 Amazon gift card immediately upon approval, exclusively for Prime members.
This is a great bonus, especially when you consider that no spending is required and you can use the gift card from day one. This matches the best bonus we’ve seen on this card, which has only been offered once before for a limited time last July.
Related: The Best Credit Card Welcome Bonuses This Month
Yield
Prime Visa earns cash back at the following rates:
- 5% off bookings at Amazon, Amazon Fresh, Whole Foods and Chase Travel℠
- Restaurants (including takeaways), petrol stations and local transport and commuting 2%
- 1% on all other purchases
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This is the best consistent return you’ll find on Amazon shopping, and the returns in the 2% category are impressive.
There’s no limit to the cash back you can earn, and you can redeem rewards to pay for all or part of your Amazon purchases. In addition to cash back, you can redeem your rewards for gift cards or travel.
Related: Best Cash Back Credit Cards
How should I use the card?
This should be your go-to card when shopping at Amazon and Whole Foods to maximize unlimited 5% cash back. If you want a simple card setup, you can pair this card with a 2% Cash Rewards card, such as Wells Fargo Active Cash® Card (see rates and charges) or Citi Double Cash® Card (see rates and fees) to ensure you earn at least 2% on your purchases (with Citi Double Cash, you get 1% cash back on purchases and 1% cash back on payments).
However, multiple cards can earn at least 3% or more at restaurants, gas stations, and local transportation and commuting, e.g. American Express® Gold Cardearn 4 points per $1 spent at restaurants around the world (first $50,000 spent each calendar year; 1 point per $1 thereafter), and American Express Blue Cash Preferred® Card*, earn 3% cash back at U.S. gas stations and on local commutes and transportation.
*Cash back is received in the form of Reward Dollars, which can be used as statement points and redeemed at checkout on Amazon.com.
Related: The Best Credit Cards for Amazon Shopping
Earn back your membership fees
Now, let’s calculate the break-even costs of signing up for Prime and using a Prime Visa card.
The first year, when you subtract the cost of Prime membership from the welcome gift card value, you net about $110. After the first year, you’ll need to spend about $2,780 at Amazon or Whole Foods each subsequent year to earn enough cash to break even on the cost of a Prime subscription.
Here’s the cost breakdown: $139 Prime membership divided by 5% cash back rewards rate = $2,780.
A 2024 analysis by Consumer Intelligence Research Partners found that the typical Amazon Prime member spends about $1,100 per year at the retailer. That’s not enough to justify getting a Prime membership just to get a credit card.
For example, if you spend about $1,500 a year on Amazon and Whole Foods, you’ll get $75 in cash back, which is far less than the $139 Prime membership fee.
However, for me, Prime Visa is the workhorse when shopping on Amazon and Whole Foods. I spend far more there than I’d like to admit, so this card is a no-brainer for my specific spending since I can recoup the annual fee.
Related: The Best Credit Cards for Online Shopping
Other card benefits
With this card, you also get many other benefits, including:
These are some real benefits, especially for a card with no annual fee.
Related: Earn Points, Miles or Cash Back: How to Make the Most of Your Online Shopping Portal Purchases
Calculate your Prime Visa value
Determining whether it’s worth paying the Prime membership fee to get a Prime Visa is highly subjective. Some may find the 5% cash back on Amazon and Whole Foods purchases to be a great value.
If you’re an Amazon Prime member and regularly spend a lot of money at the online retail giant, this card might be a good fit for you. Memberships are also great value thanks to Prime Video and Amazon Music streaming services, which makes it easier to justify the $139 annual fee. On top of that, adding a rewards credit card is just the icing on the cake.
But if you don’t plan on taking advantage of the additional Prime benefits and are considering just using this card to get Amazon Prime, do the math to see if you can earn enough with the card’s welcome bonus and rewards rate to justify the cost of Prime.
You may find it best to use a flat-rate cash back or travel rewards credit card.
RELATED: Flat-Rate vs. Bonus Category Cash Back Credit Cards Compare
bottom line
If you’re a current Amazon Prime member, the Prime Visa might be a nice addition to your wallet with no annual fee. Plus, if you’re like me and regularly spend some of your budget at Whole Foods and Amazon, the unbeatable 5% bonus rate on those fees will net you some serious cash back.
However, if you’re not a Prime member or don’t shop on Amazon frequently, you may want to consider other cards, such as ones that earn flexible or transferable rewards currency.
For more information, read our full review of Prime Visa.
Apply here: Premium visa
