Is the Prime Visa credit card worth the cost?
In the competitive world of online shopping, Amazon stands as a dominant force, and its Prime Visa credit card is designed to enhance the shopping experience for its members. While the card does not carry an annual fee, it is exclusively available to Amazon Prime members, who must pay a membership fee of $139 per year or $14.99 per month. This membership not only unlocks the benefits of the Prime Visa but also provides access to a wealth of other perks, including free shipping, streaming services, and exclusive deals. Currently, the Prime Visa offers an attractive welcome bonus of a $250 Amazon gift card upon approval, which can be used immediately and matches the highest offer seen for the card.
The Prime Visa offers competitive cash back rates, providing 5% on purchases made at Amazon, Whole Foods, and Chase Travel bookings, alongside 2% on dining, gas, and local transit, and 1% on all other purchases. This makes it a particularly valuable tool for frequent Amazon shoppers, as there is no cap on the cash back earned. However, to truly assess whether the Prime Visa is worth the investment, potential users should consider their spending habits. According to a 2024 analysis, the average Amazon Prime member spends about $1,100 annually, which may not be sufficient to justify the Prime membership solely for the credit card benefits. For example, if a member spends $1,500 at Amazon and Whole Foods, they would earn $75 cash back, falling short of the membership cost.
For those who frequently shop at Amazon and Whole Foods, the Prime Visa can be a beneficial addition to their financial toolkit, especially when combined with other cards that offer higher cash back rates in categories like dining and gas. The card also provides additional benefits such as travel insurance, purchase protection, and early access to Prime Day deals, enhancing its overall value. Nevertheless, for individuals who do not regularly utilize Amazon’s services or the Prime membership benefits, it may be wiser to consider other cash-back or travel rewards credit cards that better align with their spending patterns. Ultimately, the decision to apply for the Prime Visa should be carefully weighed against one’s shopping habits and the overall value derived from an Amazon Prime membership.
When it comes to online retailers, Amazon is the giant in the room.
While the
Prime Visa
(see
rates and fees
) doesn’t technically have an annual fee, one of its caveats is that you have to be an
Amazon Prime
member to qualify. A Prime membership costs $139 per year (or $14.99 per month).
It’s hard to assess the value of a Prime membership based solely on the return you might get using the online retailer’s credit card — because membership includes so many other tangible benefits — but for argument’s sake, we’re going to try.
Related:
8 ways to save money on Amazon orders
Welcome offer
The Prime Visa currently offers a $250 Amazon gift card instantly upon approval, exclusively for Prime members.
THE POINTS GUY
This is an excellent bonus, especially when you factor in that no spending is required, and you can use the gift card starting on day one. This matches the best-ever bonus we’ve seen on this card, which was previously offered only once last July for a limited period.
Related:
The best credit card welcome bonuses this month
Earning rates
The Prime Visa earns cash back at the following rates:
5% on Amazon, Amazon Fresh, Whole Foods and
Chase Travel℠
bookings
2% on restaurants (including takeout),
gas stations
and local transit and commuting
1% on all other purchases
This is the best consistent return you’ll find for Amazon purchases and a respectable return on the 2% categories.
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There’s no cap on the cash back you can earn, and you can redeem your rewards to pay for all or part of your Amazon purchases. In addition to cash back, you can also redeem your rewards for gift cards or travel.
Related:
Best cash-back credit cards
How should you use the card?
This should be your go-to card at Amazon and Whole Foods to maximize the unlimited 5% cash back. If you want a simple card setup, you could pair this card with a 2% cash rewards card like the
Wells Fargo Active Cash® Card
(see
rates and fees
) or the
Citi Double Cash® Card
(see
rates and fees
) to ensure you earn at least 2% across your purchases (with the Citi Double Cash, you earn 1% cash back when you buy and 1% cash back when you pay).
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However, multiple cards earn at least 3% or more on restaurants, gas stations and local transit and commuting, like the
American Express® Gold Card
, which earns 4 points per dollar spent at restaurants worldwide (on the first $50,000 in purchases per calendar year; then 1 point per dollar), and the
Blue Cash Preferred® Card from American Express
*, which earns 3% cash back at U.S. gas stations and on local commuting and transit.
*Cash back is received in the form of Reward Dollars that can be redeemed as a statement credit and at Amazon.com checkout.
Related:
The best credit cards for Amazon purchases
Earning your membership fee back
Now, let’s figure out your break-even cost for signing up for a Prime membership and using the Prime Visa card.
DANIA MAXWELL/BLOOMBERG VIA GETTY IMAGES
During the first year, you net about $110 when you subtract the Prime membership cost from the welcome gift card value. After year one, you’d need to spend about $2,780 at Amazon or Whole Foods during each subsequent year to earn enough cash back to break even with the cost of a Prime subscription.
The cost breakdown looks like this: $139 Prime membership divided by 5% cash back reward rate = $2,780.
A 2024
Consumer Intelligence Research Partners
analysis found that the typical Amazon Prime member spends about $1,100 a year with the retailer. That’s not enough spending to justify getting a Prime membership for the sole purpose of getting the credit card.
If, for example, you spend about $1,500 on Amazon and Whole Foods in a year, that would earn you $75 cash back, well short of the $139 Prime membership fee.
However, for me, the Prime Visa is a workhorse when it comes to shopping at Amazon and Whole Foods. I spend far more than I’d like to admit there, so this card is a no-brainer for my specific spending since I more than recoup the annual fee.
Related:
The best credit cards for online shopping
Other card benefits
With this card, you’ll also receive a myriad of other benefits, including:
Baggage delay insurance
Early access to Prime Day deals
Extended warranty protection
Lost luggage reimbursement
No foreign transaction fees
Purchase protection
Roadside assistance
Secondary rental car insurance
Travel accident insurance
Travel and emergency assistance
10% back on a rotating selection of items and categories
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These are some solid benefits, especially for a card with no annual fee.
Related:
Earn points, miles or cash back: How to maximize online shopping portals for your purchases
Calculating your Prime Visa value
Determining whether it’s worth paying the Prime membership fee to get the Prime Visa is extremely subjective. Some may find incredible value in the 5% cash back on Amazon and Whole Foods purchases.
If you’re an Amazon Prime member and frequently spend a lot with the online retail giant, this card is likely a good fit for you. There’s also value in the membership because of the Prime Video and Amazon Music streaming services, which more easily justify the $139 annual cost. Throwing in a rewards credit card on top of that is just icing on the cake.
OLEG BRESLAVTSEV/GETTY IMAGES
However, if you won’t utilize the additional Prime membership benefits and are considering getting Amazon Prime just for this card, do the math to see whether you’ll earn enough with the card’s welcome bonus and reward rates to justify the Prime membership cost.
You’ll likely find that you’re better off using a flat-rate
cash-back
or
travel rewards
credit card instead.
Related:
Comparing flat-rate with bonus-category cash-back credit cards
Bottom line
If you’re currently an Amazon Prime member, the Prime Visa has the potential to be a great no-annual-fee addition to your wallet. Plus, if you’re like me and frequently spend a portion of your budget on Whole Foods and Amazon purchases, the unrivaled 5% reward rate on these charges will net you a decent amount of cash back.
However, if you are not a Prime member or don’t shop at Amazon frequently, you may want to consider other cards, such as ones that earn a
flexible or transferable reward currency
.
For more information, read our
full review of the Prime Visa
.
Apply here:
Prime Visa
Editorial disclaimer: Opinions expressed here are the author’s alone, not those of any bank, credit card issuer, airline or hotel chain, and have not been reviewed, approved or otherwise endorsed by any of these entities.
