The Amazon card rewards you for purchases you're already making, but only at Amazon and Whole Foods
Amazon offers two credit cards through Chase: the Amazon Prime Rewards Visa Signature Card and the Amazon Rewards Visa Card. Both earn cash back on Amazon and Whole Foods purchases. The Prime version earns 5% back at Amazon and Whole Foods (capped at $500 in rewards per year, then 1% after), 2% at gas stations and restaurants, and 1% everywhere else. The standard Amazon card earns 3% at Amazon and Whole Foods and 1% everywhere else. Neither card charges an annual fee.
The real question is whether the rewards are worth changing where you shop or how you pay. Most people already have a credit card. The Amazon card only makes financial sense if you spend enough at Amazon or Whole Foods to earn back more than you would with a card you already own.
Key Takeaways
- The Amazon Prime Rewards card earns 5% back at Amazon and Whole Foods, but only if you're a Prime member, and the 5% reward is capped at $500 per year.
- Both Amazon cards earn less than 1% back at most other stores, so they're not useful for everyday spending outside Amazon.
- You don't need an Amazon card to shop at Amazon — you can use any credit card, and some cards earn more than 1% back on all purchases.
- The card is worth keeping only if you spend enough at Amazon and Whole Foods each month that the rewards exceed what you'd earn with a different card.
- Both cards report to the three major credit bureaus, so responsible use helps build your credit history.
How the 5% Amazon Prime reward actually works
The 5% cash back at Amazon and Whole Foods sounds generous until you hit the cap. Once you've earned $500 in rewards in a calendar year, the rate drops to 1% for the rest of that year. For most people, that cap is reached somewhere between $10,000 and $12,000 in annual Amazon spending — roughly $800 to $1,000 per month.
If you spend less than that, the 5% rate applies to everything. If you spend more, you're earning 1% on purchases above the cap, which is the same rate you'd get from a basic cash-back card. The cap resets on January 1st each year.
You also have to be a Prime member for the 5% rate. If you're not a Prime member, the Amazon Rewards card (the non-Prime version) earns 3% at Amazon and Whole Foods instead, with no annual cap.
When the Amazon card costs you money instead of saving it
The card earns 2% at gas stations and restaurants (Prime version) or 1% everywhere else (both versions). A competing card like the Chase Freedom Unlimited earns 1.5% on all purchases with no caps and no Prime requirement. If you use your Amazon card at a gas station, you earn 2%. If you use the Freedom Unlimited, you earn 1.5%. The difference is small, but it adds up if you're not shopping at Amazon.
The real cost appears when you compare total annual rewards. Say you spend $5,000 at Amazon, $2,000 at Whole Foods, $3,000 at restaurants and gas, and $10,000 everywhere else. With the Amazon Prime card, you'd earn $500 (capped) plus $60 plus $100 = $660. With a flat 1.5% card, you'd earn $300. The Amazon card wins by $360 that year. But if you only spend $2,000 at Amazon and Whole Foods combined, the Amazon card earns $100 plus $60 plus $100 = $260, while the 1.5% card earns $225. Now the difference is only $35, and you're carrying a card that doesn't work well anywhere but Amazon.
What happens to your credit when you open the card
Opening a new credit card triggers a hard inquiry on your credit report, which can lower your score by a few points for a few months. The inquiry itself fades after 12 months and stops affecting your score after two years, but it stays on your report for seven years.
Once the account is open, the card helps your credit in two ways: it adds to your available credit (which lowers your credit utilization ratio if you keep the balance low), and it gives you another account to make on-time payments to. Both of these improve your score over time, usually within a few months.
If you close the card later, you lose the available credit, which can raise your utilization ratio and lower your score. You also lose the payment history benefit. For this reason, many people keep old cards open even if they don't use them, as long as there's no annual fee — and there isn't one on either Amazon card.
How the Amazon card compares to other rewards cards
| Card | Amazon & Whole Foods | Restaurants & Gas | Everything Else | Annual Fee |
|---|---|---|---|---|
| Amazon Prime Rewards | 5% (capped at $500/year) | 2% | 1% | None |
| Amazon Rewards | 3% | 1% | 1% | None |
| Chase Freedom Unlimited | 1.5% | 1.5% | 1.5% | None |
| Capital One SavorOne | 1% | 3% | 1% | None |
The Amazon card wins if you spend heavily at Amazon or Whole Foods. It loses if you want a card that works equally well everywhere. The choice depends on where your money actually goes, not on which card sounds best.
Other perks beyond the cash back
Both Amazon cards come with purchase protection, which covers items you buy with the card against theft or damage for 120 days. They also include extended warranty protection that adds one year to the manufacturer's warranty on may be able to access items. These are standard benefits on most mid-tier credit cards and rarely matter in practice — most people never file a claim.
The Prime version includes concierge services and travel protections like trip cancellation insurance and emergency medical and dental coverage abroad. Again, these are common on cards with no annual fee and are rarely used. The real benefit of the Amazon card is the cash back, not the insurance.
Frequently Asked Questions
Do I need an Amazon card to get the best price on Amazon?
No. Amazon prices are the same whether you pay with their card or any other card. The card only determines how much cash back you earn. You can shop at Amazon with any credit card, debit card, or gift card.
What if I spend more than $500 in rewards in a year?
Once you hit $500 in cash-back rewards on the Prime card, the rate drops from 5% to 1% for the rest of that calendar year. The cap resets on January 1st. If you spend more than $10,000 per year at Amazon, a flat-rate card might earn you more.
Can I use the Amazon card outside the US?
Yes, but you'll pay a foreign transaction fee of 3% on purchases made outside the US. If you travel internationally, a card with no foreign transaction fee will save you money.
Does the Amazon card help build credit?
Yes. The card reports to all three credit bureaus, so on-time payments help your credit score. Opening the card also adds available credit, which lowers your utilization ratio. However, closing the card later will remove that available credit and may lower your score.
What's the difference between the Prime and non-Prime Amazon cards?
The Prime card earns 5% at Amazon and Whole Foods (capped at $500 per year) and requires a Prime membership. The standard Amazon card earns 3% with no cap and no Prime requirement. Choose the Prime card only if you're already a Prime member and spend enough to hit the $500 cap.