Amazon Prime Rewards Visa Signature Credit Card Review

Amazon Prime Rewards Visa Signature Card

Get rewarded with Amazon Prime Rewards Visa Signature 

Dedicated online shoppers who love convenience and savings will love the Amazon Prime Rewards Visa Signature credit card. It gives eligible Amazon Prime members 5% cash back on Amazon.com and Whole Foods Market purchases, 2% cash back on restaurants, gas stations and drug stores and 1% back on everything else. Once your Amazon Prime Rewards Visa is stored in your Amazon Wallet, you start automatically earning redeemable cash back points. You also get to take advantage of exclusive Prime cardmember offers, allowing you to save even more on thousands of items.

What to expect from the Amazon Prime Rewards Visa Signature Credit Card

  • APR: 15.74% to 23.74%
  • Annual Fee: $0
  • Rewards Rates: Eligible Amazon Prime members earn 5% on Amazon.com and Whole Foods Market purchases; 2% back for purchases at restaurants, gas stations and drug stores; and 1% back for everything else.
  • Get a $100 Amazon Gift Card the minute your card is approved.

Even better

  • Become eligible for exclusive Prime cardmember offers, including an additional 5% to 20% in cash back, on thousands of Amazon.com items.
  • Redeem your cash back points in a variety of convenient ways, such as applying the points as a credit to purchase items sold through Amazon.com, depositing cash directly into your bank account, using as an Amazon account statement credit, applying toward travel or redeeming as an Amazon gift card. In order to receive cash back, you must have a balance of 2,000 points.
  • Never be subjected to an earning cap in any of the spending categories. While other cash reward cards limit the amount of cash back points you can receive, with Amazon Prime Rewards you can rack up as many points as you want.
  • Enjoy no foreign transaction fees, travel accident insurance, lost luggage reimbursement and travel and emergency assistance.
  • Experience the consumer protection assurance of zero fraud liability, extended warranty protection and purchase protection on new purchases for 120 days against theft or damage.

But keep your eyes open for pitfalls

Amazon Prime Rewards Visa is not the best credit card for people who don’t pay their balance in full because of the lofty APR. Unlike some cash back credit cards, like the Bank of America® Cash Rewards credit card, Amazon Prime Rewards Visa will charge interest on the full statement balance even if you only carry over a small part of that balance. Not paying in full also causes you to forgo the grace period on existing purchases. This “double whammy” can potentially cause you to end up paying big interest fees.

Another thing to keep in mind: You must be an Amazon Prime member in good standing to be eligible for the 5% cash back reward feature. Otherwise, your cash back reward level on Amazon.com and Whole Foods Market purchases drops to 3%. Since Prime membership itself costs $119 annually, that subscription fee should be factored into the overall savings. If you are not a big online shopper, there are better cash back reward cards for you, such as the Capital One Quicksilver Rewards credit card. 

How to maximize your Amazon Prime Rewards Visa Signature rewards

Frequent online shoppers are the best-suited to the Amazon Prime Rewards Visa. You save in two key ways — on the cost of shipping through Amazon Prime membership and by maximizing the 5% cash back reward category. For people who order through Amazon.com and Whole Foods Market on a regular basis, the savings can be significant because there are no earning caps on points. Moreover, Amazon makes it easy for you to redeem points by linking your account to the credit card, and it further incentivizes shopping at Amazon.com by offering exclusive Prime membership deals that add five to 20% in cash back rewards.

Point redemption is also an important consideration. Because it is directly affiliated with Amazon Prime, the Amazon Prime Rewards Visa is built right into the Amazon Prime checkout platform, making it tempting to click a button and redeem your points, which are immediately applied to your purchase for an instant discount. For some cardmembers, this can be an irresistible and even addictive convenience.

Here’s the catch. When you use your points to make a purchase, you aren’t earning cash back points you would get if you used your Amazon Prime Rewards Visa card to make the purchase. The smartest way to use the card is to let points accumulate until you reach the threshold of 2,000, after which you can directly deposit them into your checking account in the form of cash. 

The bottom line 

The Amazon Prime Rewards Visa Signature credit card is an excellent choice for Amazon Prime members and dedicated online shoppers who want to save money on services they already enjoy. The 5% cash back on Amazon.com and Whole Foods Market purchases can really add up because there are no limits on the number of points you can accrue. And you can’t beat the convenience. Linked to your account via Amazon Wallet, the system is simple to use and understand.

This is not the right cash back card for everyone, however. If you don’t shop online enough to justify the cost of a Prime membership, you will probably not earn enough points to make this a good deal. Moreover, cardmembers who tend to carry a balance may face steep interest charges since Amazon Prime Rewards Visa charges interest on the full amount you charged in a statement period, not just on the amount that carries over. 

For people who want to save money on interest, there are better cash back cards on the market. The Discover it® Cash Back card has no annual fee, offers 0% APR for the first 14 months, matches all the cash new cardmembers earn back in the first year and allows you to use your rewards at Amazon.com.