The Amazon card works best if you shop on Amazon regularly and can pay your full balance each month

The Amazon credit card (issued by Chase) offers a higher cash-back rate on Amazon purchases than most other cards — typically 3% or 5% depending on which version you choose — but charges an annual fee on some versions and offers little reward value outside Amazon and a few other categories. Whether it makes sense depends entirely on where you actually spend money. If you buy most things elsewhere, or if you carry a balance and pay interest, the rewards never outweigh the costs.

The card comes in two main versions: the Amazon Prime Rewards Visa Signature Card (requires Prime membership, no annual fee) and the Amazon Prime Rewards Visa Infinite Card (requires Prime membership, $39 annual fee). The higher-tier card gives you 5% back on Amazon purchases instead of 3%, plus additional perks like statement credits and concierge services. Outside Amazon, both cards offer 2% back at gas stations and restaurants, and 1% on everything else.

The math is straightforward: if you spend $2,000 a year on Amazon and nothing else, the no-fee card gives you $60 in rewards. If you switch to the $39-fee card, you get $100 in rewards, netting you $61 after the fee. That only works if you actually redeem the rewards and if you never carry a balance. A single month of interest charges wipes out years of cash-back gains.

Key Takeaways

  • The no-fee Amazon Prime card pays 3% back on Amazon purchases, but only if you have an active Prime membership.
  • The $39-fee version pays 5% on Amazon purchases, which only makes financial sense if you spend at least $800 a year on Amazon after accounting for the fee.
  • Outside Amazon, both cards pay just 2% at gas and restaurants and 1% everywhere else — lower than many competing cards with no annual fee.
  • If you carry a balance and pay interest, the rewards are too small to offset the cost, and you should prioritize a card with a lower interest rate instead.
  • The card requires an active Amazon Prime membership to use, so the total cost includes both the card fee (if applicable) and the $139 annual Prime fee.

When the Amazon card actually saves you money

The card makes financial sense only in specific situations. You need to spend enough on Amazon that the extra cash-back rate beats the annual fee (if you choose the premium version), and you need to pay your full balance every month so interest charges do not erase the rewards.

For the no-fee card: if you have Prime and spend any amount on Amazon, the 3% back is better than nothing. You lose nothing by holding it, since there is no annual fee. Use it for Amazon purchases and keep another card for everyday spending if that card offers better rewards elsewhere.

For the $39-fee card: you need to spend roughly $1,300 per year on Amazon to break even on the fee alone (at 3% extra cash back compared to the no-fee version). Many people do not spend that much. If you do, the card only makes sense if you also pay no interest. A single month of 20% APR interest on a $1,000 balance costs you $17 — nearly a third of your annual Amazon rewards.

How the rewards compare to other cards

The Amazon card's 3% to 5% back on Amazon is competitive, but Amazon is one retailer. Most people spend money across many places, and the card's rewards outside Amazon are weak.

A card like the Chase Freedom Unlimited offers 1.5% cash back on everything with no annual fee and no spending category limits. If you spend $5,000 a year across all categories, you earn $75. The Amazon no-fee card would earn you $75 only if all $5,000 went to Amazon; if it is split across Amazon and other stores, you earn less. The Amazon card's 2% at gas stations and restaurants is better than 1.5%, but only if you spend heavily in those categories.

The Citi Double Cash card offers 2% back on all purchases (1% when you buy, 1% when you pay) with no annual fee and no category restrictions. For most people who do not spend the majority of their money on Amazon, this card produces more rewards.

The hidden costs beyond the annual fee

The Amazon card requires an active Prime membership to use. Prime costs $139 per year (or $14.99 per month). If you do not already have Prime, the true cost of using this card is the card fee plus the Prime fee. A $39 card fee plus $139 Prime fee is $178 per year in costs before you earn a single dollar in rewards.

You also cannot earn rewards on Amazon purchases made through third-party sellers who do not use Amazon Pay, though most do. Some business purchases and gift card sales also fall outside the rewards structure. Read the terms carefully before assuming all your Amazon spending will earn the advertised rate.

Interest charges are the largest hidden cost. If you carry a balance, the card's APR (typically 18% to 24% depending on your credit) means you pay far more in interest than you earn in rewards. A $2,000 balance at 21% APR costs you $35 per month in interest alone. Your annual Amazon rewards would need to exceed $420 to break even — meaning you would need to spend over $14,000 on Amazon per year at the 3% rate.

What to do if you do not spend much on Amazon

If you shop on Amazon occasionally but most of your spending happens elsewhere, the Amazon card is not the right choice. A flat-rate cash-back card with no annual fee and no category restrictions will produce more rewards for your actual spending pattern.

If you want category-based rewards, look for cards that reward the categories where you actually spend: groceries, gas, dining, travel, or online shopping broadly (not just Amazon). The Chase Freedom Flex offers 5% back on rotating categories and 1% on everything else with no annual fee. The American Express Blue Cash Everyday offers 3% back on groceries and gas with no annual fee. Both beat the Amazon card for people whose spending is spread across multiple retailers.

If you have a low credit score and the Amazon card is the only card you can get approved for, use it for Amazon purchases only and keep it paid off. Once your credit improves, you can switch to a card with better rewards across all your spending categories.

Interest rates and balance transfers

The Amazon card's interest rate is not better or worse than most other Chase cards — typically 18% to 24% APR depending on your credit score. It offers no 0% introductory period for purchases or balance transfers, which means you pay interest from day one if you carry a balance.

If you are considering this card because you need to carry a balance, stop. The rewards are too small to offset the interest cost. Instead, look for a card with a 0% introductory APR period (usually 6 to 21 months depending on the card), which lets you pay down debt without interest charges. The Citi Intro Balance Transfer card offers 0% APR on balance transfers for 21 months, for example. That saves you far more money than any cash-back rewards.

Frequently Asked Questions

Do I need Prime to use the Amazon credit card?

Yes. Both versions of the Amazon card require an active Prime membership. If you do not have Prime, you cannot open the card. If your Prime membership lapses, you keep the card but lose the rewards rate — it drops to 1% on Amazon purchases.

Can I use the Amazon card outside Amazon?

Yes, but the rewards are low. You earn 2% at gas stations and restaurants, and 1% on all other purchases. For most people, a flat-rate card with no annual fee pays more rewards on non-Amazon spending.

What happens if I carry a balance on the Amazon card?

You pay interest at the card's APR (typically 18% to 24%), which quickly erases any rewards you earn. A $1,000 balance at 21% APR costs $210 per year in interest. You would need to spend over $7,000 on Amazon at the 3% rate just to break even on that interest charge.

Is the Amazon card worth it if I have Prime anyway?

Only if you spend at least $800 to $1,000 per year on Amazon and pay your balance in full every month. If you spend less than that, or if you sometimes carry a balance, a different card will save you more money.

What card should I use instead?

If you spend across many retailers, the Chase Freedom Unlimited (1.5% on everything, no annual fee) or Citi Double Cash (2% on everything, no annual fee) produce more rewards. If you want category rewards, look for cards that pay higher rates in the categories where you actually spend — groceries, gas, dining, or travel.