Amazon Rewards Visa and Amazon Prime Rewards Visa Signature have both become quite popular for users who prefer using Amazon to do their online shopping. Of course, there’s a good reason for frequent users to use these Amazon cards and that’s because they are great for earning cash back on Amazon purchases. In fact, they are, for the most part, unparalleled in this regard.
The Amazon Rewards Visa grants a 3% cashback on every purchase made on Amazon, while the Amazon Prime Visa Signature offers 5% for all Amazon Prime subscribers. Both of these cards combined offer a great deal that will help you save quite a bit of money on your purchases.
Now, the question arises: Which one is the best card to use for shopping on Amazon? And, are there other cards out there that offer even better rewards on Amazon purchases?
Even though the cards seemed to be stacked in favor of Amazon’s cash back cards, there are definitely other alternatives out there that can be quite surprising.
Here are some of the best options for Amazon purchases:
- Amazon Rewards Visa
- Amazon Prime Rewards Visa Signature
- Discover it card
- Chase Freedom
Amazon Credit Cards: A Comparison
Our starting point today is comparing the regular Amazon cash back card to the Amazon Prime counterpart. When you know that the Amazon Prime Visa Signature card offers 5% cash back, it seems to be like the best choice, but that’s not necessarily so because it all depends on the kind of shopper you are. This means that the best option depends on your Amazon shopping habits.
Let’s break down both cards to see what they have to offer:
|Amazon Rewards Visa||Amazon Prime Rewards Visa Signature|
● 3% cashback on Amazon and Whole Foods purchases.
● 2% cash back on gas, restaurant and drugstore purchases.
● 1% cash back on general purchases.
● 5% back on Amazon.com and Whole Foods purchases.
● 2% back on restaurant, gas station and drug store purchases.
● 1% back on other purchases.
|Sign-up bonus||$50 Amazon gift card on approval.||$70 Amazon gift card on sign-up.|
|Estimated yearly rewards value ($1,325 monthly expenses, including sign-up bonus)||$253||$225|
● No need to pay membership fees.
● Offers higher rate on Amazon purchases than most cards.
● Easy to redeem your cash back.
● Highest rewards rate on Amazon purchases.
● Easy to redeem your cash back.
● Prime membership comes with valuable benefits, including free 2-day shipping.
|Cons||A few cards on the market can top the overall cash back rate.||It requires you to pay Amazon Prime’s membership, at $119.|
|Who is this card for?||
● People who spend less than $4,950 a year on Amazon purchases.
● People who don’t want to commit to an Amazon Prime membership.
● Amazon Prime members.
● People who value Amazon Prime services.
● People who spend more than $99 per year on shipping qualified Amazon products.
● People who spend more than $4,950 per year on Amazon purchases.
Now that we’ve broken them down, you can see that even if the Amazon Prime card offers a higher cash back rate and a $70 gift card as a signup bonus, you still have to consider the cost of the Amazon Prime membership, which can lower the value of the card for you, depending on your spending habits and on how much value the Prime membership has for you personally.
Amazon Prime card: Better suited for current and aspiring Prime subscribers
If you’re already an Amazon Prime member, the Amazon Prime card doesn’t really require any second thought; that 5% cash back is definitely the way to go. As you know, Amazon Prime offers a lot of valuable perks and advantages, including free two-day shipping on eligible purchases, free streaming on Prime Video, and Amazon Family discounts on baby items, so there’s already a lot of value there. If you have use for these services, then the Prime membership and Prime card are definitely worth it.
Amazon Prime card: Better suited for shoppers who spend over $99 a year on shipping
Perhaps the best feature about Amazon Prime has to be the shipping benefits because it offers free standard shipping on qualified purchases of any amount, but it also offers free two-day shipping and free one-day, same-day, and two-hour deliveries in some cities.
Here’s a list of Amazon’s full shipping benefits that can save you a lot of money in the long run:
Amazon Prime Shipping Benefits
|Same-Day Delivery||Free in certain cities|
|Two-Hour Delivery||Free in eligible ZIP codes|
|One-Day Shipping||Free in certain cities|
|Saturday Shipping||Price depends on the size and weight of the item, but it can be as low as $7.99|
This level of shipping convenience is very valuable for many users out there and it makes the cost of the Amazon Prime membership more than worth it.
However, one thing you need to keep in mind is that free shipping only applies to qualified items, which are marked with the Amazon Prime logo. Of course, it applies to many different items, but it doesn’t apply for items that are sold and shipped by outside vendors and many other items as well.
Another thing to keep in mind is that Amazon already offers free standard shipping on orders over a certain size for regular members. Amazon has also lowered the threshold for free shipping to $25 in qualified purchases.
What this means is that you really need to do the math on your shipping costs to decide if the Amazon Prime membership is worth your coin. If you only make small purchases on Amazon, then the Prime membership might not offer as much value as you need. You really have to do your homework to see if a Prime membership is going to save you as much money as you think it will in the long run.
Amazon Prime Card: Better suited for shoppers who spend over $5,950 a year
For most shoppers, the value of the Prime membership depends heavily on how much money they spend in Amazon purchases every year.
If you’re more interested in the value of the cash back rewards of the Amazon Prime Card as compared to the cost of the Prime membership, we calculated that the number is $5,950 a year, which boils down to about $496 a month.
At $5,950, the amount of cash back minus the cost of the annual Prime membership equals the cash back that you can enjoy with the Amazon Visa card.
The math goes like this:
- Amazon Visa card cash back: $5,950/year x 3% cash back = $178.50
- Amazon Prime card cash back: $5,950/year x 5% cash back – $119 annual fee = $178.50
If you spend even more than $5,950 a year on Amazon, then the Amazon Prime membership will have a higher net value for you. But that’s quite a lot of money!
According to the 2014 report from Consumer Intelligence Research Partners, the average Amazon shopper spends about half of $5,950, while non-members spend about a fifth.
If $5,950 is too high for you, then the regular Amazon Visa card is the right choice for you.