Amazon Prime Visa Review
Tl;dr: The card offers big returns on Amazon purchases, but even regular Amazon users probably won’t see much value from these marginally better cash back rates.
When I first started trying to optimize my credit card portfolio, the Amazon Prime Visa stood out as an obvious must-have. Most of my spending fell into one of four categories: food (restaurants and groceries), flights, rent, and miscellaneous expenses. With just the Amex Gold, Bilt Mastercard, and Capital One Venture X, I earned 4x on food, 3x on flights, 1x on rent, and 2x on everything else. I only had one spending category that was big enough to benefit from a better rate of return: Amazon purchases. Or so I thought.
After running the numbers, though, I decided to avoid the Amazon card and never looked back. Heavy Amazon users might feel the gravitational pull of its 5% cash back rate, but with so many better cards on the market, most would do best to avoid this one.
What’s so great about it?
The card comes with a hefty 5% cash back at Amazon, including Amazon Fresh, and also offers 5% back at Whole Foods stores. It also offers a respectable 2% cash back at gas stations (8¢+ off per gallon out here in California), and special discounts on rotating products.
What are the drawbacks?
It’s a fine card, with strong purchase and travel protections and great earning rates with Amazon companies and Chase Travel.
But apart from that, there’s not much special here, so the main drawback is opportunity cost. It’s an extra card that eats up wallet space or 5/24 slots without offering big benefits like trips to Europe. Meanwhile, you’ll get better value with other cards on almost any non-Amazon purchase. And strong everyday cards like the Venture X or Citi Double Cash offer solid 2x rates at Amazon without the need for a specialty card, while the Amex Blue Cash Everyday earns a solid 3% back on online retail spending up to $6,000 each year.
That’s not even to mention the bonus opportunities regularly available on non-Amazon cards. For example, throughout most of the Christmas shopping season, my Amex Gold card had an offer for 5x bonus points when shopping at Amazon, a 6x point return that blows the 5% cash-back out of the water. I also had an offer from SimplyMiles for an extra AA mile per dollar spent at Amazon, turning any Mastercard into at least a 2x card at Amazon.
And even if you’re a big spender at Amazon, the benefits aren’t huge. For every $1,000 you spend at Amazon each year, this card will return you $50, while a 2x card will net you $20+ in points or cash back. $30 is nothing to sneeze at, and the benefits obviously increase the more you spend. But is that worth choosing this card over one that will take you to Japan? Probably not.
Is it lazy?
Relatively! The card has solid all-around returns, and would serve decently as the only card in your wallet. There are no credits to optimize or perks to be taken advantage of. Its main bonus is at Amazon, so you can set it as the default card in your Amazon wallet and get its high returns automatically. If you have multiple cards, you may find that the 2% back on restaurants isn’t competitive, but the 2% back on gas and transit is, so you might need to try to keep track of which card is optimal in those cases.
How’s the sign-up bonus?
Meh. To be nice about it. The current offer is a $100 Amazon gift card (although it comes instantly upon approval, without a spending requirement), and I believe I’ve seen this go as high as $250. I certainly wouldn’t even consider getting this card for less than $200. But even that pales in comparison to the lucrative sign up bonuses available on the best travel cards, while all the best no-fee cards usually offer at least $200 in cashback as a sign up bonus.
Conclusion
This is a solid card to have in the wallet, and heavy Amazon users can get real value from it. But most people would be better off with cards that cover the bigger spending categories, offer major perks, and come with stronger incentives.
Key Card Details
Annual fee: None
Credits: None
Cash back rates:
5% at Amazon, Amazon Fresh, Whole Foods, and Chase Travel
2% at restaurants, gas stations, and on local travel & commuting
1% on everything else
Protections
Visa Signature benefits
Perks
10%+ cash back on rotating items and categories on Amazon