Credit Card Review: Amazon Prime Rewards Visa Signature Card from Chase
It should come as no surprise to most Americans that Amazon's sales grew extraordinarily in 2020 with profits nearly doubled. If you are one of the hundreds of millions of customers who have been relying on Amazon at a greater extent than ever before, then you should learn about the Amazon Prime Rewards Visa Signature Card from Chase, which offers as much as 5% off all of your Amazon purchases.
Key Terms
- Welcome Bonus: Get a $150 Amazon Gift Card instantly upon approval
- Rewards: Prime members earn 5% back at Amazon.com and Whole Foods Market. Earn 2% back at restaurants, gas stations and drugstores, and 1% back on all other purchases
- Annual Fee: $0
- APR: 14.24%–22.24% variable APR
- Promotional Financing Offer: None
How This Card Works
If you're a one of over 148 million Amazon Prime members in the US, then you can use this card to earn 5% cash back on all of your qualified Amazon and Whole Foods Market purchases, with no limits. You'll also earn 2% back at restaurants, gas stations and drugstores, as well as 1% back on all other purchases.
Other features include 10% back or more on select products and the option to choose 0% APR promotional financing for 6 to 18 months on purchases of $50 or more (instead of earning cash back). There's no annual fee for this card, which is accepted anywhere that takes Visa and there are no foreign transaction fees.
Advantages
Amazon purchases have become some of many families largest expenditures, and the Amazon Prime Rewards Visa Signature Card is an easy way for them to earn 5% back on all of those purchases, all the time. It's also a pretty competitive card for common everyday purchases such as those at restaurants, gas stations and drugstores, which earn 2% cash back. You also have the option of picking 0% APR financing instead of earning rewards, which could be valuable to some. The fact that this card has no annual fee and no foreign transaction fees makes this card an easy decision.
Disadvantages
Although this card has no annual fee, you have to be an Amazon Prime member, which currently costs either $12.99 per month or $119 a year. This card does offer new members a $150 gift card, but that's pretty small compared to the new account bonuses offered by many cash back cards. And as with all rewards credit cards, you can expect higher interest rates than those offered by low interest cards that don't feature rewards.
Alternatives
Target REDcard. This card offers a 5% discount on most in-store and online purchases, and cardholders enjoy free two-day shipping on qualifying items, plus a longer return window. There's no annual fee for this card and it's not part of any other payment network. That means you can only use it at Target stores and at Target.com.
Capital One Walmart Rewards® Card. This card offers you 5% cash back for purchases at Walmart.com, including pickup and delivery. You also receive 2% cash back at Walmart stores, at restaurants and travel, and 1% cash back elsewhere. As an introductory rewards offer, new cardholders can also earn 5% cash back in Walmart stores for the first 12 months after approval when you use your card with Walmart Pay, Walmart's self-checkout system. There's no annual fee for this card.
Costco Anywhere Visa® Card by Citi. This card offers a range of cash back for Costco customers including 4% back on eligible gas, including gas at Costco (for the first $7,000 spent per year, then 1% thereafter). You also receive 3% cash back on restaurants and eligible travel purchases worldwide. You earn 2% on all other purchases from Costco and Costco.com and 1% on all other purchases. There's no annual fee for this card with your paid Costco membership.