Amazon Prime Visa Review

The Amazon Prime Visa, issued by Chase, is one of the best credit cards you can find for online shopping. It offers exceptional value to Amazon Prime members with a generous 5% cash back rate on purchases at Amazon.com and Whole Foods, as well as Chase travel purchases. Plus, you can also earn 2% cash back on gas station, restaurant and local transit and commuting purchases.

This card also charges a $0 annual fee and comes with a long list of benefits like purchase protection, auto rental collision damage waiver and lost luggage reimbursement. Points can be applied directly to your Amazon purchases at checkout or redeemed for travel, cash and gift cards.

Be aware that without a Prime membership, you’ll only be eligible for the Amazon Rewards Visa Signature Card rather than the Prime Visa, and you’ll earn cash back at a reduced rate.

• Earn cash back at a generous rate

  Cardholders earn unlimited 5% back at Amazon.com, Amazon Fresh, Whole Foods Market, and on Chase Travel purchases with an eligible Prime membership, unlimited 2% back at gas stations, restaurants, and on local transit and commuting (including rideshare), and unlimited 1% on all other purchases. This is a high rewards rate and frequent shoppers at Amazon or Whole Foods will find that few cards match its 5% bonus on these categories.

• Cash back is easy to redeem

  There are a number of quick and easy ways to redeem rewards with the Prime Visa. You can redeem rewards through your Amazon account by applying them directly to your purchase at checkout.

  You can also redeem points through Chase as soon as the next day. Redemption options include:

  • Statement credits to your card
  • Cash back deposited to a bank account
  • Gift cards from a variety of retailers
  • Travel through Chase.com

• Get an Amazon gift card once approved

  This sign-up bonus is very easy to earn — you’ll get a $200 Amazon Gift Card instantly upon approval exclusively for Prime members. Once you are approved for the card your gift card balance will be loaded into your Amazon account and can be used as your payment method at checkout.

  It’s true that there are credit cards with bigger sign-up bonuses, but this one doesn’t require any spending on the card to earn it.

• No annual fee

  Between the Prime Visa‘s generous cash back program and its $0 annual fee, this card is a money-saving tool for frequent Amazon shoppers. However, note that you will need to have an Amazon Prime membership, which costs $14.99 per month or $139 per year ($7.49 per month or $69 for college students).

  For those who already have Amazon Prime, getting this card is an easy decision. But if you don’t already have Prime, you should do the math on how much you spend on Amazon purchases each year and determine if it’s worth signing up for a Prime subscription.

  For example, you would need to spend $2,780 on purchases that earn 5% cash back to recoup the amount of your Prime membership ($1,380 for student members).

  Or, consider that you can just sign up for the regular Amazon Rewards Visa Signature Card to get 3% cash back on Amazon and Whole Foods purchases. You would need to spend $6,950 on these purchases ($3,450 for student members) to justify the extra savings you would get with the Prime card.

  	Prime Visa	Amazon Rewards Visa Signature Card
  Amazon purchases made	$6,950	$6,950
  Cost of Prime Membership	$139	$0
  Cash back rate	5%	3%
  Cash back earned	$6,950 x 5% = $347.50	$6,950 x 3% = $208.50
  Cash back - Cost of Prime Membership	$347.50 - $139 = $208.50	$208.50 - $0 = $208.50

• Get it now, pay over time promo APR

  The Prime Visa offers a get it now, pay over time feature that allows you to make monthly interest free payments when you use your card at Amazon.com or another eligible retailer with Amazon Pay. The 0% promo APR can be used on purchases of $50 or more over a six month period or purchases of $250 or more over a 12 month period. After the 0% promo period ends, you’ll be subject to the regular purchase APR of 19.99%–28.74% Variable.

• Access to a number of Chase benefits

  The Prime Visa is issued by Chase — allowing you to have access to a number of Chase benefits when you use your card:

  • Auto Rental Collision Damage Waiver
  • Baggage Delay Insurance
  • Extended Warranty Protection
  • Lost Luggage Reimbursement
  • Roadside Dispatch®
  • Travel Accident Insurance
  • Travel and Emergency Assistance Services
  • Purchase Protection

• No foreign transaction fee

  You can take the Prime Visa with you when you travel abroad without worrying about having an additional fee tacked onto every transaction you make — this card has a $0 foreign transaction fee.

• Must have an Amazon Prime Membership

  To qualify for the Prime Visa, you’ll need an Amazon Prime membership. An Amazon Prime membership is currently $14.99 per month or $139 per year ($7.49 per month or $69 per year for students) and will get you free same-day, one-day and two-day delivery on Amazon Prime purchases, exclusive prime member discounts and free shipping on grocery orders of $150 or more on Amazon Fresh. Plus, you’ll have access to popular movies, shows, books, music, gaming, Amazon Prime Day savings, Rx savings, Amazon photos and free returns.

  Without Prime, you’ll only be able to apply for the Amazon Rewards Visa Signature Card which earns cash back at a lower rate: 3% back at Amazon.com, Amazon Fresh, Whole Foods Market, and on Chase Travel purchases, 2% back at gas stations, restaurants, and on local transit and commuting (including rideshare), and 1% back on all other purchases.

• Subject to Chase's 5/24 rule

  The Prime Visa is issued by Chase, and as such is subject to the Chase 5/24 rule. This means that Chase will deny applicants who have been approved for five or more credit cards from any issuer in the past 24 months.

  If you are unsure of when you opened Chase cards in the past, you can use LendingTree Spring to review when you opened your credit card accounts.

• You must choose between cash back or the promo APR

  If you opt for the card’s promo APR, you won’t earn cash back on your purchases. Furthermore, it’s a deferred interest offer rather than a true 0% APR, meaning that you’ll owe the full amount of interest if you do not pay back your purchase by the end of the offer date.

  If you’re looking to finance a large purchase, you should search for a card with a 0% intro APR. Many of these cards offer interest free periods of 12 to 21 months.

Prime Visa vs. Amazon Rewards Visa Signature Card

 

If you don’t have a membership and are unsure if you want to have one, The Amazon Rewards Visa Signature Card is a decent alternative for Amazon users. The Amazon Rewards Visa Signature Card offers 3% cash back on Amazon, Whole Foods and Chase Travel purchases instead of 5%, but it will save you $139 a year on a Prime membership.

The card also has a slightly lower sign-up bonus of a $50 Amazon Gift Card instantly upon approval. Both the Prime Visa and Amazon Rewards Visa Signature Card offer the same additional Chase benefits. Deciding between these two cards comes down to whether you think a Prime membership will be worth it based on your spending habits.

Prime Visa vs. Chase Freedom Flex℠

 

The Chase Freedom Flex℠ is a good $0-annual-fee alternative that offers a high 5% cash back on purchases, but on rotating categories that change each quarter. You’ll earn 5% cash back on up to $1,500 in combined purchases in bonus categories each quarter you activate. Enjoy new 5% categories each quarter. Plus, earn 5% cash back on travel purchased through Chase Ultimate Rewards®, 3% on dining and drugstores, and 1% on all other purchases.

Chase’s cash back categories often include Amazon, although the card also gives you a chance to earn high cash back on purchases you make outside of Amazon Prime, like grocery stores and gas stations.

On a down note, however, the bonus categories require activation each quarter, so it may not be a good choice if you don’t want to do a lot of card maintenance. There’s also a foreign transaction fee of 3% of each transaction in U.S. dollars, making it a poor choice for travel.

For consumers who already have an Amazon Prime membership, adding this $0-annual-fee cash back card to your wallet is simply a smart decision. But if you’re debating whether to get Amazon Prime, consider whether you spend enough on Amazon that this card’s generous cash back program outweighs the $139 cost of an annual subscription ($69 if you’re a college student).

And if you’re not a dedicated Amazon shopper, but are looking for a card with a robust cash back program that can help when planning a big purchase, the Chase Freedom Flex℠ or Discover it^® Cash Back cards are worth considering instead.