While paying for a free shipping “membership” may have seemed unlikely just a decade ago, having an Amazon Prime membership is very common these days. It’s far too easy to order household supplies, gifts, and everything else you need online and from the comfort of your home, and an Amazon Prime membership grants you free two-day shipping and competitive pricing on everything you buy.
The Amazon Prime Rewards Visa Signature Card can take your savings efforts even further since it gives you cash back on everything you buy — and especially on Amazon.com purchases. Should you sign up? Keep reading to learn how this card works and the pros and cons of using it for all your purchases.
Amazon Prime Rewards Visa Signature Card: Supreme Cash-Back for Amazon Enthusiasts
The Amazon Prime Rewards Visa Signature Card offers an interesting proposition for consumers with an Amazon Prime membership. Not only does this card give you 5% back on all your Amazon.com purchases, but you get the same return when you shop at Whole Foods. Since the Amazon Prime Rewards Visa Signature Card is a Visa card, you can also use it for other purchases. Fortunately, you’ll get 2% back at restaurants, gas stations, and drugstores, and 1% back on all other purchases.
This rewards scheme can be a stellar deal if you spend a lot of money on Amazon.com each month — or if you regularly shop at Whole Foods. And since the Amazon Prime Rewards Visa Signature Card doesn’t charge an annual fee, you can keep it and earn cash back for the long haul without paying for the privilege.
Another benefit of the Amazon Prime Rewards Visa Signature Card is the fact it doesn’t charge foreign transaction fees. This card also comes with additional perks such as travel and emergency assistance services, lost luggage reimbursement, baggage delay insurance, and travel accident insurance. Since these benefits are offered for free as cardholder perks, they are simply icing on the cake.
Where it Falls Flat
The most significant downside of the Amazon Prime Rewards Visa Signature Card is in its rewards program. While earning 5% back in popular categories is a major plus and you can redeem your rewards in any increments you want, keep in mind that you can only redeem your cash back for more purchases on Amazon.com.
This may not be a big deal if you just want to buy more stuff from Amazon.com anyway, but you should keep in mind what you may be giving up. Some travel credit cards let you transfer points to airlines or hotels, for example, and most let you book travel directly through a travel portal. The Amazon Prime Rewards Visa Signature Card just lets you earn rewards for “stuff,” which may or may not be fine depending on your needs and rewards goals.
Also consider the fact that this card doesn’t offer a big signup bonus like some competing cards. You can qualify for a $150 Amazon.com gift card if you’re approved, but this is weak considering many of the top rewards credit cards offer bonuses worth $500 or more.
One final downside of the Amazon Prime Rewards Visa Signature Card is the fact that you are required to be an Amazon Prime member to qualify. This membership will set you back $119 per year, although you’ll get plenty of bang for your buck if you use the free two-day shipping option often enough.
Why You May Want to Consider Another Rewards Credit Card
While the Amazon Prime Rewards Visa Signature Card is a real winner when it comes to Amazon.com and Whole Foods purchases, you may want to consider another credit card to maximize your spending on other purchases. Earning 2% back at restaurants, gas stations, and drugstores is a nice perk, but it’s not that great if you can only redeem those additional rewards for more Amazon.com shopping.
You could, for example, consider a card like the Chase Sapphire Preferred® Card. This card gives you 100,000 bonus points after you spend $4,000 within 3 months of account opening. That's $1,250 when you redeem through Chase Ultimate Rewards®, and you also enjoy new benefits such as a $50 annual Ultimate Rewards Hotel Credit, 5X points on travel purchased through Chase Ultimate Rewards®, 3X points on dining and 2X points on all other travel purchases, plus more. The best part is, you can redeem the rewards you earn in myriad ways — for gift cards, statement credits, merchandise, or travel through the Chase Ultimate Rewards® portal. You can even transfer your points 1:1 to popular airline and hotel partners like Southwest Rapid Rewards®, United MileagePlus, British Airways, World of Hyatt, and Marriott Bonvoy. A $95 annual fee applies, but it’s well worth it considering the bonus alone is worth $1,250 toward travel when you redeem through Chase Ultimate Rewards®.
In summary, you should absolutely consider the Amazon Prime Rewards Visa Signature Card if you have an Amazon Prime membership and shop there frequently. However, don’t forget that you can pair your card with another rewards credit card that lets you earn more flexible rewards and a bigger signup bonus.
The Bottom Line
The Amazon Prime Rewards Visa Signature Card is definitely worth considering if you’re a ride or die Amazon.com shopper or Whole Foods enthusiast. Earning 5% back without an annual fee is pretty sweet, and that’s especially true since there are no limits on how much you can earn.
For the most part, we think the Amazon Prime Rewards Visa Signature Card is best for:
- Existing Amazon Prime members who use the site for most of their shopping
- Amazon Prime members who also buy their groceries at Whole Foods
- Consumers who want some free travel protections on their credit card without having to pay an annual fee
- Consumers who don’t mind spending their rewards on Amazon.com purchases instead of travel
With that in mind, don’t forget that there are dozens of popular rewards and travel credit cards offering hundreds of dollars in signup bonuses and additional perks. Make sure to compare all your options before you choose a rewards credit card, and consider the prospect of pairing two or more cards to find the right combination of rewards and perks for your needs.
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