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Online retailer Amazon offers two credit cards to help earn you rewards for your purchases. We’ll discuss the benefits and drawbacks of each card, and discuss whether alternative cards offer better deals for qualified applicants.
If you’re looking for just about any item in the known universe, chances are Amazon has it. And it’s no surprise that Amazon now offers its own retailer credit cards in the form of Amazon Rewards Visa Signature and Amazon Prime Rewards Visa Signature cards. However, the question is: Are they worth signing up for? Or, are there better credit card alternatives out there? Let’s take a look at each cards’ benefits and program basics, as well of the drawbacks that may influence your decision-making.
Overview | Amazon Credit Cards
Currently, Amazon offers two branded credit cards issued by Chase: Amazon Rewards and Amazon Prime Rewards. As you may guess, the Amazon Rewards card is available for all eligible applications, whereas the Amazon Prime Rewards credit card is only available for those that have an eligible Amazon Prime membership.
Essentially, the main difference between these cards is the benefits that they offer cardholders. Prime members receive 5% back at Amazon.com as well as upscale grocer Whole Foods Market; regular Amazon Rewards cardholders only receive 3% back on Amazon and Whole Foods Market. Also, the Prime Rewards members receive a $70 Amazon.com Gift Card signup bonus, while the Amazon Rewards only gets a $50 Gift Card.
Considering that both cards come with no annual fee (you can think of the Prime membership as a fee, if you’re a stickler), these cards can lead to great savings. Best of all, percentage-back benefits are unlimited–something that many store-branded credit cards don’t come with. Additionally, both cards offer 2% back at restaurants, gas stations, and drugstores, as well as 1% back on all other purchases.
Here’s a list of some more benefits that both Rewards Visa Signature cards from Amazon offer:
- Special promotions
- No foreign transaction fees
- Roadside dispatch
- Auto rental collision damage waiver
- Purchase protection
- Extended warranty protection
- Travel & emergency assistance
- Complimentary Visa Signature Concierge Service (24/7 availability)
- Lost luggage reimbursement
- Baggage delay insurance
- Travel accident insurance
- Visa Signature Luxury Hotel perks, including:
- VIP guest status
- Room upgrades
- Exclusive benefits
(For a full list of perks and benefits of Amazon Rewards Visa Signature and Amazon Prime Rewards Visa Signature cards, visit Amazon’s explanation of benefits page.)
However, it should be noted that both cards don’t come with “cash back” rewards, per se. Instead, Amazon’s rewards program uses “percent-back”, where eligible purchases earn points based on which type of purchase is made before being issued to your account. A simplified way of thinking about these rewards is that $1 of eligible purchases is equivalent to a certain amount of points.
| Amazon Rewards | Amazon Prime Rewards | |
| Amazon.com & Whole Foods | 3 points per $1 spent | 5 points per $1 spent |
| Restaurants, gas stations & drugstores | 2 points per $1 spent | |
| All other retailers | 1 point per $1 spent | |
As a quick example, if you spent $100 at Whole Foods, you’d earn 300 points if you used your Amazon Rewards Visa credit card, or 500 points if you used the Amazon Prime Rewards Visa credit card. Similarly, spending $50 at the pump earns 100 points no matter which card you use.
Once you’ve amassed your points, cardholders can redeem then several ways, including:
- eligible purchases at Amazon.com
- 100 points in your account equals $1
- cash (after reaching 2,000 points)
- available as statement credits on your Amazon account, or
- electronic deposit into an eligible checking/savings account
- gift cards
- 100 points in your account equals $1
- travel rewards
- redeem through Chase Travel Advisor
- products and services
- redeem at checkout
| Amazon Rewards | Amazon Prime Rewards | |
| Cash Back Benefits | 3% back at Amazon.com and Whole Foods Market 2% at restaurants, gas stations, and drugstores 1% back on all other purchases | 5% back at Amazon.com and Whole Foods Market 2% at restaurants, gas stations, and drugstores 1% back on all other purchases |
| Annual Fee | $0 | $0 |
| Average FICO Score to Qualify | 690 and above | 690 and above |
The Drawbacks of Amazon Credit Cards
For all of the perks and benefits of Amazon Rewards credit cards, there are a couple of drawbacks:
- Depending on your creditworthiness at the time of signup, you may qualify for an Amazon Rewards credit card with a high APR, which can offset any potential rewards that you earn.
- Switching between and using multiple Amazon accounts may revert the Amazon Prime Rewards card’s 5% rate to the standard 3%.
- The percent-back rates do not apply to purchases made from:
- other websites operated by Amazon (e.g. Audible, Zappos, etc.)
- Whole Foods classes, tickets, or services through 3rd-party sites (e.g. Eventbrite, Instacart, Google Express, Shipt, etc
- merchants using Amazon Pay
- international Amazon retail sites (e.g. Amazon.co.uk, Amazon.ca, etc.),
- international Whole Foods purchases
While the Amazon Rewards Visa Signature and Amazon Prime Rewards Visa Signature credits are some of the best deals in terms of in-store credit cards, there are other credit cards that may offer better terms, perks, and rewards.
How Amazon’s Credit Card Compare to Alternative Programs
Before applying for Amazon’s credit cards you should explore all-purpose cards that will offer more spending flexibility and favorable rewards programs. Three we recommend are:
Chase Freedom Unlimited
An Amazon credit card with different percent return across categories may sound appealing but the Chase Freedom Unlimited offers a flat cashback of 1.5% cash back on all purchases. You can earn $200 by making early spend of $500 on purchase within the first three months of opening the account and having no limit on redemption alongside no point expiry is an added bonus.
There is a wide array of rewards redemption mode offered by Chase such as statement credits, deposit to your savings or checking account, gift cards and option to pay for your order at Amazon.com.
You do not receive an introductory APR offer with Amazon credit cards whereas its possible with Chase Freedom card.
Purchase protection, one year extended warranty, fraud protection and zero liability protection are some of the other features that add value to your purchases. If you have an excellent credit than you may want to consider getting a Freedom Unlimited card.
Capital One® Savor® Cash Rewards Credit Card
Capital One® Savor® Cash Rewards Credit Card has loads to offer with 4% cash back on dining and entertainment, 2% on grocery shopping and 1% on all other purchases. You could be eligible for a $300 welcome bonus after you spend $3000 in the first three months of account opening. Apart from cashback for shopping Savor lets you get rewards in other categories too.
You can avail an 8% cash back when you book tickets for concerts or theatres through Vivid seats and this offer is valid until May 31, 2020. You can be reimbursed for your Membership fee for Postmates food delivery up until December 2019. To enroll for this card you require a good credit score.
Capital One Savor rewards does have an annual fee of $95, but as a part of the introductory offer, the first year fee is waived. No foreign transaction fee,no expiry of rewards, 120 days of price protection, and 2 years of extended warranty is what makes this card rank higher in comparison to the other cards.
Capital One® QuicksilverOne® Cash Rewards Credit Card
If spending and calculation as per the different rewards category is not something you want to do then look no further than Capital One® QuicksilverOne® Cash Reward credit card. You will get 1.5% cash back on all your purchases everywhere. Similar to the Amazon card the points accumulated on this card don’t expire.
This card will allow you to get a higher credit line if you make the first five monthly payments on time. Your purchases are covered from damage and theft for sixty days under the purchase protection benefit and the card gives you one year extended warranty benefit.
Travel and accident insurance, Auto Rental Insurance,Trip Cancellation/Trip Interruption Insurance, Travel and emergency assistance service are all inclusive in all the three cards listed above. Freedom Unlimited though offers Lost luggage reimbursement whereas Savor has Baggage Delay Insurance and Concierge service as additional offerings.
The Bottom Line
In conclusion, both the Amazon Rewards Visa Signature and Amazon Prime Rewards Visa Signature cards are solid bets if you do a majority of your shopping online at Amazon or at Whole Foods. For those that are already an Amazon Prime member, it’s kind of a no-brainer to sign up for the card to earn back points for purchase that you would ordinarily make otherwise and reap the benefits. However, because these credit cards require a good credit score, you may be eligible for credit cards that offer better rewards programs.
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