Is the Amazon Prime Rewards Visa Signature card worth it?
If you are a huge Amazon.com fan, you might be considering one of the best credit cards for shopping online, the Visa Signature Amazon Prime Rewards card. This card offers the highest reward rate for purchases on Amazon.com, as well as a handful of other categories.
But, with so many rewarding credit cards, how can you tell if this card deserves a place in your wallet? Let’s take a look at the features of this card to see what it offers and who would benefit the most from the rewards, perks, and perks.
What does the Amazon Prime Rewards Visa Signature card offer?
In addition to giving back 5% to cardholders on Amazon.com and Wholefoods purchases, you’ll also earn 2% at restaurants, gas stations, and drugstores, and then 1% on all other purchases. The best part? There is no limit to the number of rewards you can earn. As a welcome bonus, you will receive a $ 100 Amazon.com gift card upon approval of your card request.
What stands out about this store credit card is that even though it is linked to a major retailer, you will still earn rewards on a large number of items sold in one of the largest marketplaces in the world, Amazon. .com. Plus, if you like the selection of premium natural foods that Whole Foods has to offer, you can save a lot of money as well. Also offering 2% cashback at restaurants, gas stations and drugstores, plus 1% cashback on all other purchases, this card could be very valuable for the right person.
While you may already understand the difference, this card should not be confused with the Amazon.com “closed loop” store card. This card can only be used on Amazon.com and has very different terms than the Visa Signature Amazon Prime Rewards card. The most important difference is that you can only use it for shopping on Amazon.com and nowhere else.
Highlights of the Amazon Prime Reward card:
- Reward rate: 5 percent return on Amazon.com and Whole Foods Market; 2 percent return at restaurants, gas stations and drugstores; 1% discount on all other purchases
- Welcome offer: $ 100 Amazon gift card after approval
- Annual subscription: $ 0 (Amazon Prime subscription of $ 119 required)
- APR purchase intro: N / A
- APR introduction balance transfer: N / A
- Regular APR: 14.24 percent to 22.24 percent variable
Since it is part of the Visa Signature credit card family, you will also enjoy additional benefits, including extended warranties, fraud-free liability, route dispatch, lost or stolen card reporting, credit card services, and more. emergency and travel assistance, emergency card replacement and rental car collision insurance. , to only cite a few.
Earning rewards is as easy as using your Amazon Prime Rewards card when spending in bonus categories which include Amazon.com, Whole Foods, Restaurants, Drugstores, Gas Station purchases, and all other general purchases . You don’t need to sign up for anything or activate bonus categories, just swipe and earn rewards.
Redeeming rewards is a bit more complicated. With this card, you don’t earn cash back or credit on your statement, but points which can be redeemed in different ways.
You can redeem your points at a 1: 1 value for cash back, travel, gift cards, or Amazon purchases at checkout, but there are plenty of Amazon.com items you can’t redeem your points for. reward points, such as Amazon Music and Kindle downloads.
There is no minimum rewards balance to redeem for cash back or Amazon purchases, and you can usually maximize your Amazon cash back by taking advantage of the site’s “subscribe and save” offers. You can also redeem points for gift cards from other retailers on the Amazon site for additional discounts and rewards.
How much can I earn with the Amazon Prime Rewards Visa card?
Whenever we analyze whether a card is worth it or not, the main factors we consider include:
- Expenses necessary to justify the annual membership fee
- Cardholder spending habits
- The opportunity cost of jumping to another better rewards card
According to US Bureau of Labor Statistics, the average household earned $ 84,352 in 2020 while spending $ 61,334. This included $ 7,316 in combined food expenses ($ 4,942 at home and $ 2,375 outside), $ 1,568 in gasoline and motor oil, and $ 1,434 in clothing and services.
So if we use the 2020 numbers as a spending model, an Amazon Prime Rewards cardholder could expect to earn around $ 247 on grocery expenses at Whole Foods, $ 48 on restaurant expenses, $ 31 on gas station expenses and $ 36 on clothing expenses. on Amazon.com (using half of the $ 1,434 figure), then $ 7 back on services (the other half of the $ 1,434 figure) for a total of $ 369 in rewards for the year. By subtracting the cost of your Prime membership ($ 119), you would earn $ 250 in rewards.
Of course, these calculations are based on average expenses. So there is a lot of variation in terms of what you can actually earn in rewards. For one thing, you can exclude the cost of your Amazon Prime membership in your calculations, especially if it’s an expense you tend to have anyway. Second, you might consider your $ 100 Amazon Gift Card welcome bonus as another way to offset the cost of your Prime membership, at least for the first year.
Finally, these numbers could be very low for your Amazon spending. According to Bank of America data, the average Amazon Prime member spends $ 1,968 per year on Amazon, more than four times non-Prime members. This means that the average Prime member could earn $ 98 in rewards just on Amazon.com purchases, not even considering rewards from other expense categories.
How does the Amazon Prime Rewards card compare to other credit cards?
Most often, this card is compared to the Capital One Walmart Rewards Mastercard, which offers:
- 5% discount on purchases made on Walmart.com (including pickup and delivery of Walmart groceries)
- 5% cashback on in-store purchases using Walmart Pay during the first 12 months of card possession as an introductory offer (unlimited 2% on in-store purchases thereafter)
- 2 percent return on restaurants and travel
- 1% discount on all other purchases
While it’s hard to make a perfect apples-to-apples comparison here, one could argue that the award categories are very similar. There are just a few nuances that might make this card slightly better for you than the Amazon Prime Rewards card. For one thing, there’s no need for membership or annual fees for this card, which is a plus.
However, your in-store purchases with Walmart Pay stop recovering 5% and drop to 2% after 12 months of card use. But if you don’t mind shopping at Walmart.com to earn rewards, you’ll still earn 5% cash back, which like the Amazon Prime Rewards card could still include your grocery expenses with pickup and grocery delivery from Walmart.com.
If you don’t have a strong preference for a big box store, you can opt for a high income rewards card that offers up to 5% cash back on certain expense categories, like the Chase Freedom Flex℠ or the Citi Custom Cash℠ Card. The downsides of these cards are that the bonus categories can change and there is a limit to the amount of rewards you can earn.
Is the Amazon Prime Rewards Visa Signature card worth it?
This card offers one of the highest cash back rates for very common expense categories for most families. The inclusion of Whole Foods and Amazon Fresh in the 5 percent of the menu category makes this card ideal for daily expenses. If you’re using your credit card for home renovations or travel rewards, there’s always value, but there are better options for spending in those categories.
In other words, if you already have a worthwhile Prime membership, the card will likely top up your spending. If you’re still struggling with the cost of a Prime membership, the rewards you earn with that card can help offset the cost.