For those who’re a giant fan of Amazon.com, you then is likely to be contemplating one of many best online shopping credit cards, the Amazon Prime Rewards Visa Signature Card. This card provides the best charge of rewards for Amazon.com purchases, plus a handful of different classes.
However, with so many rewards bank cards on the market, how are you going to inform if this card deserves a spot in your pockets? Let’s have a look at this card’s options to see what it provides and who’d profit most from the rewards, perks and advantages.
What does the Amazon Prime Rewards Visa Signature Card supply?
Along with giving cardholders 5 p.c again on Amazon.com and Wholefoods purchases, you’ll additionally earn 2 p.c again at eating places, gasoline stations and drugstores after which 1 p.c again on all different purchases. One of the best half? There’s no restrict to the quantity of rewards that you would be able to earn. As a welcome bonus, you’ll get a $100 Amazon.com present card upon the approval of your utility for the cardboard.
What stands out about this retailer bank card is that though it’s tied to at least one most important retailer, you’ll nonetheless earn rewards on an unlimited variety of objects offered on one of many world’s largest marketplaces, Amazon.com. Plus, if you happen to’re into the upscale, pure meals choice Complete Meals has to supply, there’s potential to avoid wasting quite a lot of cash there, too. Additionally providing 2 p.c again at eating places, gasoline stations and drugstores, plus one p.c again on all different purchases, this card may very well be very invaluable for the fitting particular person.
Though you could have found out the distinction by now, this card shouldn’t be confused with the “closed-loop” Amazon.com Retailer Card. This card can solely be used at Amazon.com and has vastly totally different phrases than the Amazon Prime Rewards Visa Signature Card. Probably the most vital distinction is that you would be able to solely use it to buy on Amazon.com and nowhere else.
Amazon Prime Reward card highlights:
- Rewards charge: 5 p.c again at Amazon.com and Complete Meals Market; 2 p.c again at eating places, gasoline stations and drugstores; 1 p.c again on all different purchases
- Welcome supply: $100 Amazon present card upon approval
- Annual payment: $0 ($119 Amazon Prime subscription required)
- Buy intro APR: N/A
- Stability switch intro APR: N/A
- Common APR: 14.24 p.c to 22.24 p.c variable
Because it’s a part of the Visa Signature credit card household, you’ll additionally get additional advantages together with prolonged warranties, zero fraud legal responsibility, roadside dispatch, misplaced or stolen card reporting, journey and emergency help providers, emergency card substitute and auto rental collision injury waiver, to call a couple of.
Incomes rewards is as simple as utilizing your Amazon Prime Rewards card when spending within the bonus classes that embrace Amazon.com, Complete Meals, eating places, drugstore, gasoline station purchases and all different normal purchases. You don’t want to enroll in something or activate any bonus classes—simply swipe and earn rewards.
Redeeming rewards is a bit more difficult. With this card, you aren’t incomes cash back or assertion credit however factors that may be redeemed in numerous methods.
You’ll be able to redeem your factors at a 1:1 worth towards money again, journey, present playing cards or Amazon purchases upon checkout, however there are lots of Amazon.com objects you’ll be able to’t use your rewards factors for, like Amazon Music and Kindle downloads.
There’s no minimal rewards stability to redeem for money again or Amazon purchases, and you’ll sometimes maximize your cash back on Amazon by profiting from the positioning’s “subscribe and save offers.” You can even redeem factors for present playing cards from different retailers on Amazon’s web site for additional reductions and rewards.
How a lot might I earn with the Amazon Prime Rewards Visa Card?
At any time when we analyze if a card is “value it” or not, the primary elements we take into account embrace:
- Spending required to justify the annual payment
- Spending habits of the cardholder
- The chance value of skipping out on one other, higher rewards card
In line with the U.S. Bureau of Labor Statistics, the typical family earned $84,352 in 2020 whereas spending $61,334. This included $7,316 in mixed meals spending ($4,942 at dwelling and $2,375 away from dwelling), $1,568 in gasoline and motor oil and $1,434 in attire and providers.
So if we use the 2020 figures for as our spending mannequin, an Amazon Prime Rewards cardholder might count on to earn round $247 again from grocery spending at Complete Meals, $48 again from restaurant spending, $31 again for gasoline station spending and $36 again for attire spending at Amazon.com (utilizing half of the $1,434 determine), then $7 again on providers (the opposite half of the $1,434 determine) for a complete of $369 in rewards for the 12 months. Subtracting the price of your Prime membership—$119—you’ll web $250 in rewards.
After all, these calculations are primarily based on common spending numbers. So there’s plenty of variation by way of what you’ll be able to actually web in rewards. For one, you may exclude the price of your Amazon Prime membership in your calculations—particularly if it’s an expense you are likely to have anyway. Secondly, you may take into account your $100 Amazon present card welcome bonus as one other technique to offset the price of your Prime membership, a minimum of within the first 12 months.
Lastly, these numbers may very well be very low on your Amazon spending. In line with data from Bank of America, the typical Amazon Prime member spends $1,968 per 12 months on Amazon, greater than 4 instances non-Prime members do. That signifies that the typical Prime member might earn $98 in rewards from Amazon.com purchases alone, not even factoring in rewards from the opposite spending classes.
How does the Amazon Prime Rewards card examine to different bank cards?
Most frequently, this card is in comparison with the Capital One Walmart Rewards Mastercard, which provides:
- 5 p.c again on purchases made on Walmart.com (together with Walmart Grocery Pickup and Supply)
- 5 p.c again on in-store purchases utilizing Walmart Pay for the primary 12 months of card possession as an introductory supply (limitless 2 p.c again on in-store purchases after that)
- 2 p.c again on eating places and journey
- 1 p.c again on all different purchases
Though it’s tough to make an ideal apples-to-apples comparability right here, one might argue that the rewards classes are very related. There are only a few nuances that would make this card barely higher for you than the Amazon Prime Rewards card. For one, there’s no membership wanted or annual payment for this card, which is a plus.
Nonetheless, your in-store purchases with Walmart Pay cease incomes 5 p.c again and drop to 2 p.c after 12 months of getting the cardboard. However if you happen to don’t thoughts purchasing at Walmart.com to earn rewards, you’ll nonetheless earn 5 p.c again, which, just like the Amazon Prime Rewards card, might nonetheless embrace your grocery spending with Walmart.com grocery pickup and supply.
For those who don’t have a robust choice for a big-box retailer, you may go together with a high-earning rewards card that provides as much as 5 p.c again on sure spending classes, just like the Chase Freedom Flex℠ or the Citi Custom Cash℠ Card. The downsides to those playing cards are that the bonus classes can change and there’s a restrict on the quantity of rewards you’ll be able to earn.
Is the Amazon Prime Rewards Visa Signature Card value it?
This card provides one of many highest charges of money again for spending classes which can be quite common for many households. The inclusion of Complete Meals and Amazon Contemporary within the card’s 5 p.c class make this card nice for everyday spending. For those who use your bank card for dwelling enhancements or travel rewards, there’s nonetheless some worth, however there are higher choices on the market for spending in these classes.
In different phrases, if you have already got a Prime membership that you simply discover to be value it, the cardboard will seemingly complement your spending. For those who’re nonetheless grappling with the price of a Prime membership, the rewards you earn with this card might help offset the associated fee.
— to www.bankrate.com