Amazon has a no-fee credit card Prime members should strongly consider — if only for the 5% cash back on all Amazon and Whole Foods purchases

There is no annual fee for the Amazon Prime Rewards Visa Signature Card, and the $70 gift card received upon approval provides an immediate cash incentive.

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There is no annual fee for the Amazon Prime Rewards Visa Signature Card, and the $70 gift card received upon approval provides an immediate cash incentive.
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With no annual fee, and an impressive 5% back on all Amazon and Whole Foods purchases (with a Prime membership), the Amazon Prime Rewards Visa Signature Card is the highest tiered card of the four offered by e-commerce giant.

While a $119 annual Amazon Prime membership fee might deter some people (though we think the cost is justified for these 14 reasons), the card has virtually no downsides for existing Prime members. With points redeemed seamlessly for cash on the Amazon site, the earning system is one of the most straightforward of any rewards card and adds instant savings for big users of the site.

Benefits of the Amazon Prime Rewards Visa Signature Card

When it comes to rewards credit cards, the two important factors to keep in mind are how do you earn points and how do you burn points? And when it comes to the Amazon Prime Rewards, the answer for both is by shopping on Amazon Prime.

If you’re not a Prime member, the first question is whether or not you want to pay for the service. Amazon’s Prime currently costs $119 a year, or $12.99 a month, and has become tremendously popular, with Amazon disclosing it had reached 100 million subscribers worldwide last year. The free two-day shipping service has grown as Amazon has added streaming services via Prime video and exclusive offers to its members on Prime Day. New subscribers can sign up for a 30-day free trial of Amazon Prime here.

While the benefits justify the cost for many, we wouldn’t argue joining Prime just to earn the 5% on this card (unless you spend over $6,000 a year on Amazon). If you don’t plan on enrolling in Prime but still want to earn cash for using the site, we’d recommend checking out the standard Amazon Rewards Visa Signature Card, which earns 3% back on Amazon purchases.

However, for those who are existing Prime users, the Amazon Prime Rewards is definitely worth it.

There is no additional cost for the card, and you instantly and seamlessly earn 5% on every purchase made through Amazon and Whole Foods. Your card is automatically linked to your account, and Amazon makes it incredibly easy for you to use your points toward purchases. Available points are displayed at every checkout, where you have the option to put them toward your current purchase with the click of a button. No necessary portals, no redemption process.

If you’re like me, there’s no single company you’d rather have this deal with, as Amazon is basically a proxy for the entire online merchant ecosystem.

Virtually everything is available there, and it appears to only be growing in inventory. For frequent shoppers of the platform, this is basically like earning 5% cash back on everything you buy – clothes, holiday and wedding gifts, or large electronics and furniture purchases. If you are living with roommates, you can order household essentials that are split between everyone and reap 5% while being the roommate who conveniently takes care of everything.

You can also earn cash back bonuses on certain specific products or categories by exploring the Prime Card Bonus Offers page. When you purchase something through that page, you’ll get anywhere from 10-20% back.

The card also added its 5% cash back to Whole Foods purchases after the company was acquired by Amazon. This not only makes it one of the highest earning grocery cards we’ve seen (to those with loyalty to the brand), but its 2% back, restaurants, drug stores, and gas stations puts it on par with many all-around spending cards.

Other Visa Signature benefits

The Amazon Prime Rewards is a Visa Signature Card, which grants it a number of travel, auto, and purchase protections you expect from other Visa Signature cards. These include:

  • Travel accident insurance: When you pay for transportation with your Amazon Prime Rewards card, you are eligible to receive accidental death or dismemberment coverage of up to $500,000.
  • Emergency assistance and roadside dispatch: Roadside services cover everything from tows and jump starts, to tire changes, to gas delivery. The Visa Benefit Administrator Roadside is available for legal and medical need during emergency assistance. However, you are responsible for any paid services incurred.
  • Lost or delayed luggage insurance: If you or an immediate family member’s luggage is damaged or lost by the carrier, you’re covered up to $3,000 per passenger. You can also be reimbursed for baggage delays of six hours for up to $100 a day, for three days.
  • Auto rental collision damage waiver: Covers theft and collision damage for most rental cars in the US and abroad. Coverage is secondary to your personal insurance.
  • Purchase protection and extended warranty: New purchases are covered for 120 days against damage or theft up to $500 per claim and $50,000 per account. Eligible warranties of three years or less are also extended an additional year.

The bottom line

The Amazon Prime Rewards Visa Signature Card is recommended for anyone who has an Amazon Prime membership. If you’re already paying for the service, it’s hard to justify not getting an additional 5% in cash back, unless you have a hard credit card limit.

There is no annual fee for the card, and the $80 gift card received upon approval provides an immediate cash incentive. Amazon has extended their 5% eligibility to Whole Foods, and it’s not improbable to think the card’s benefits will extend to other subsidiaries should Amazon continue their acquisition spree. The 2% back at restaurants, drug stores, and gas adds versatility to what is already highly efficient company-specific card.

See all of the best deals on Prime Day 2019 »