February 20, 2018
Review: Amazon Prime Rewards Credit Card
Amazon has offered a credit card in partnership with Chase for years. I hadn’t given it much thought or written about it because the rewards structure wasn’t the most compelling. But a couple recent changes make it a lot more attractive. The most appealing aspect is earning up to 5% cash back on Amazon and Whole Foods purchases.
The Amazon Prime Rewards Visa comes with an instant $70 Amazon gift card upon approval.
The Prime Rewards Visa offers two points earning structures. If you have an eligible Amazon Prime membership you’ll earn 5% back on Amazon.com and Whole Foods purchases, 2% back at restaurants, gas stations, and drugstores, and 1% back on everything else. If you do not have an eligible Amazon Prime membership, you’ll earn 3% back at Amazon.com and Whole Foods purchases, 2% back at restaurants, gas stations, and drugstores, and 1% back on everything else.
You can redeem points when shopping on Amazon.com, for statement credits, or gift cards through Chase. You get a fixed value of 1 cent per point in every scenario. For example, you’ll get $10 in rewards for every 1,000 points.
The card comes with travel accident insurance on up to $500,000, lost luggage reimbursement of up to $3,000 per passenger, baggage delay insurance of up to $100 a day for three days, and a rental car collision damage waiver. See the card’s terms and conditions for details.
The Amazon Prime Rewards card has no annual fee and no foreign transaction fees. But you’ll need an Amazon Prime membership to earn 5% back at Amazon.com and Whole Foods. Amazon Prime costs $99 per year. Prime’s main benefits are free two-day shipping, free Amazon Video, and free Amazon music.
Should You Get It?
The value proposition isn’t that great if you don’t have a Prime membership. Prime membership gets you the 5% cash back at Amazon.com and Whole Foods. This makes it the strongest cash back option on Amazon purchases.
As a comparison, the Chase Freedom can earn 5x Ultimate Rewards points per dollar on rotating quarterly categories. Chase has historically had Amazon as a bonus category at least once a year. The Blue Cash Preferred card from American Express earns 6% cash back at US supermarkets, but it’s capped at $6,000 per year and has a $95 annual fee.
The Amazon Prime Rewards Visa can make sense if you have a Prime membership and spend a lot of money at Amazon and Whole Foods. There’s better cards available if you’re looking to convert your points into airline miles for premium travel, but those require additional work to maximize. The Amazon card is an easy way to earn a solid return without much effort.