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Amazon Rewards Visa Card Overview

Amazon Rewards Visa Card Overview
Amazon Rewards Visa Card Overview

Amazon Rewards Visa Card Overview

The Amazon Rewards Visa Signature Card offers 5% back at Amazon.com and Whole Foods Market with an Amazon Prime membership. With no annual fee, is this card a must-have for frequent Amazon shoppers?

In this guide, we’ll analyze the Amazon Visa’s reward rates, benefits, welcome offer, and fees. Read on to determine if this card deserves a permanent spot in your wallet.

How the Amazon Visa Card Works

The Amazon Rewards Visa provides:

  • 5% back on Amazon and Whole Foods purchases with Prime
  • 2% back at restaurants, gas stations and drugstores
  • 1% back on all other purchases
  • 0% intro APR on purchases for 6 months (15.24% – 23.24% variable APR after that)
  • No foreign transaction fees

Now let’s dive into the rewards categories and redemption details.

Earning Rewards with the Amazon Credit Card

Here’s how the rewards break down by category:

5% Back at Amazon and Whole Foods

  • 5% back on Amazon purchases for Prime members
  • Includes anything bought on Amazon.com including digital purchases
  • Also earn 5% back in-store at Whole Foods Market

2% Back at Restaurants, Gas Stations, and Drugstores

  • Earn 2% back at restaurants including fast food and takeout
  • Also 2% back at eligible gas stations and drugstores

1% Back on Other Purchases

  • All other everyday purchases earn 1% back

Rewards are issued as points with 100 points = $1. There are no limits to the total rewards you can earn.

Redeeming Amazon Credit Card Rewards

Amazon Visa rewards points can be redeemed in a few ways:

  • Apply points to your Amazon/Whole Foods balance for purchases
  • Redeem points for Amazon gift cards to spend anywhere
  • Get statement credits to lower your card balance
  • Use points for Amazon Shop with Points at checkout

Points don’t expire as long as your account is open. There are no minimum redemptions required to start using rewards.

Benefits and Perks

Along with the rewards the Amazon Visa includes these key perks:

  • 0% intro APR on purchases for 6 months (15.24% – 23.24% variable APR after that)
  • No foreign transaction fees on international purchases
  • Travel accident and lost luggage insurance when common carrier tickets are purchased with the card
  • 24/7 concierge service for help booking travel, entertainment, and more
  • Complimentary Shoprunner membership for 2-day shipping at 100+ online stores
  • Account management tools on the Amazon Visa app and website
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What Are the Fees and APR?

The Amazon Rewards Visa Card has:

  • $0 annual fee
  • 0% introductory APR on purchases for 6 months
  • 15.24% – 23.24% variable purchase/balance transfer APR after the intro period
  • Up to 29.24% variable penalty APR
  • No foreign transaction fees

This card doesn’t charge an annual fee which is rare among co-branded retail cards. The penalty APR applies if you miss two consecutive minimum payments.

Does the Amazon Visa Offer a Welcome Bonus?

Yes, new Amazon Visa cardholders can earn:

  • $150 Amazon gift card instantly upon approval

The gift card is added to your Amazon account automatically after your application is approved. No minimum spending is required.

However, the bonus is an Amazon credit rather than straight cashback. But it still provides high value to offset your Amazon purchases.

Pros of the Amazon Rewards Visa

Here are some of the key benefits of using the Amazon Visa:

5% Back at Amazon and Whole Foods

Maximize rewards where many households already spend hundreds monthly. Prime members get the best rate.

No Annual Fee

Avoid fees charged by many other retail credit cards.

$150 Gift Card Welcome Offer

Bonus helps offset Amazon purchases and is easy to earn without minimum spend needed.

0% Intro APR

6 months no interest financing on new purchases can save on costs for large Amazon buys.

No Foreign Transaction Fees

Avoid the typical 3% fee on international Amazon purchases.

Instant Redemption Options

Apply rewards instantly to Amazon purchases without waiting to hit redemption minimums.

Frequent Amazon shoppers can quickly offset a portion of their Amazon spending through 5% rewards.

Cons of the Amazon Rewards Visa

Here are some potential downsides to the Amazon Visa to consider:

Requires Prime Membership

Must pay $139 annually for a Prime membership to earn 5% rewards.

Redemption Only at Amazon

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Rewards don’t transfer to airline miles or cash back. You must use rewards at Amazon.

Mixed Earnings Beyond Amazon

2% back on dining and gas is decent but 1% elsewhere trails some no-fee cashback cards.

High APR After Intro Period

If you carry a balance, interest up to 29.24% is very expensive long term.

Soft Inquiries During Application

Application asks for income which results in soft credit check.

Visa Signature Requirements

Must have excellent credit for approval. Those rebuilding may not qualify yet.

This card wants to live in your wallet solely for Amazon and Whole Foods purchases rather than everyday spending diversity.

How Does the Amazon Card Compare to Other Rewards Cards?

With no annual fee, the Amazon Visa compares well to other no-fee cashback and retail cards:

  • 5% back at Amazon beats the standard 1-2% from most cashback cards
  • 5% back is better than Target RedCard (5% at Target)
  • Signup bonus beats $0 offers from many cashback cards
  • 0% intro APR isn’t as long as some balance transfer cards

For Amazon loyalists, 5% back outshines generic cashback. But for flexible spending, flat-rate cashback cards can earn better elsewhere.

Should You Use This Card for Non-Amazon Purchases?

With just 1% back on non-Amazon purchases, the rewards rate trails popular no-annual-fee cashback cards like:

  • Citi® Double Cash Card – 2% cashback on all purchases
  • Citi Custom CashSM Card – 5% back in your highest eligible spend category each billing cycle
  • Chase Freedom FlexSM- 5% cashback in rotating quarterly categories

You’re better off using a flat-rate cashback card for dining, gas stations, and other everyday merchants. Reserve the Amazon Visa solely for Amazon, Whole Foods, and any limited-time 5% bonuses.

Tips for Maximizing the Amazon Credit Card

Follow these tips to maximize value from the Amazon Rewards Visa:

  • Make sure your Amazon Prime membership is linked to your Amazon login before applying
  • Use for all Amazon purchases rather than another card to earn 5% back
  • Shop through Amazon’s desktop site on a PC rather than the mobile app to earn rewards
  • Load gift card balance to your Amazon account to redeem rewards and still get 5% back
  • Buy discounted Amazon gift cards from retailers like grocery stores to save extra
  • Use contactless payment services like Apple Pay for quicker checkout
  • Check Amazon’s special promotions page for targeted 5% back offers.
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Who’s the Amazon Credit Card Best Suited For?

The Amazon Rewards Visa makes the most sense for:

  • Amazon Prime members who spend $500+ per month at Amazon and Whole Foods
  • Heavy Amazon shoppers wanting an easy 5% back without thinking about it
  • Those who appreciate 0% intro financing for large Amazon purchases
  • Frequent international shoppers needing no foreign transaction fees
  • Households wanting purchase protection and extended warranty perks

Light or infrequent Amazon shoppers may find better perks and welcome offers from general cashback cards instead.

Is the Amazon Rewards Card Worth Getting?

For avid Amazon customers, the 5% back perk can quickly add up to offset a portion of the $139 annual Prime membership fee. Between 5% rewards and the $150 gift card bonus, the Amazon Visa packs value.

But cards like the Citi Custom Cash offer similar ability to maximize bonus category spending each month at any merchant you choose.

This card’s utility really comes down to how frequently you shop at Amazon and Whole Foods. Savvy Prime members who time bonus multiplier promotions can especially rack up rewards through smart use of the 5% earning power.

Closing Thoughts on the Amazon Credit Card

The Amazon Rewards Visa allows Prime members to maximize their subscriptions by earning 5% back on Amazon and Whole Foods purchases. Even occasional Amazon shoppers can benefit through taking advantage of multiple signup bonuses over time.

Just don’t expect rich rewards for non-Amazon spending. Pair it with a flat-rate cashback card for your other everyday expenses. But for self-proclaimed Amazon addicts, this card makes checking out even more rewarding.

So if you regularly fill your cart on Amazon, be sure to fill your wallet with this card to get the most from your Prime membership through thousands in cashback rewards.

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