Is the Prime Visa card price the associated fee?

In the case of on-line retailers, Amazon is the large within the room.

Whereas the Prime Visa (see charges and costs) would not technically have an annual payment, certainly one of its caveats is that it’s a must to be an Amazon Prime member to qualify. A Prime membership prices $139 per yr (or $14.99 monthly).

It is laborious to evaluate the worth of a Prime membership primarily based solely on the return you may get utilizing the net retailer’s bank card — as a result of membership consists of so many different tangible advantages — however for argument’s sake, we will attempt.

Associated: 8 methods to economize on Amazon orders

Welcome supply

The Prime Visa presently gives a $250 Amazon reward card immediately upon approval, completely for Prime members.

This is a wonderful bonus, particularly while you think about that no spending is required, and you need to use the reward card beginning on day one. This matches the all-time bonus we have seen on this card, which was beforehand provided solely as soon as final July for a restricted interval.

Associated: The most effective bank card welcome bonuses this month

Incomes charges

The Prime Visa earns money again on the following charges:

• 5% on Amazon, Amazon Contemporary, Entire Meals and Chase Journey℠ bookings
• 2% on eating places (together with takeout), fuel stations and native transit and commuting
• 1% on all different purchases

That is the perfect constant return you may discover for Amazon purchases and a good return on the two% classes.

There isn’t any cap on the money again you’ll be able to earn, and you may redeem your rewards to pay for all or a part of your Amazon purchases. Along with money again, you may as well redeem your rewards for reward playing cards or journey.

Associated: Finest cash-back bank cards

How do you have to use the cardboard?

This must be your go-to card at Amazon and Entire Meals to maximise the limitless 5% money again. If you’d like a easy card setup, you may pair this card with a 2% money rewards card just like the Wells Fargo Energetic Money® Card (see charges and costs) or the Citi Double Money® Card (see charges and costs) to make sure you earn a minimum of 2% throughout your purchases (with the Citi Double Money, you earn 1% money again while you purchase and 1% money again while you pay).

Nonetheless, a number of playing cards earn a minimum of 3% or extra on eating places, fuel stations and native transit and commuting, just like the American Specific® Gold Card, which earns 4 factors per greenback spent at eating places worldwide (on the primary $50,000 in purchases per calendar yr; then 1 level per greenback), and the Blue Money Most well-liked® Card from American Specific*, which earns 3% money again at U.S. fuel stations and on native commuting and transit.

*Money again is obtained within the type of Reward {Dollars} that may be redeemed as a press release credit score and at Amazon.com checkout.

Associated: The most effective bank cards for Amazon purchases

Incomes your membership payment again

Now, let’s work out your break-even value for signing up for a Prime membership and utilizing the Prime Visa card.

Throughout the first yr, you web about $110 while you subtract the Prime membership value from the welcome reward card worth. After yr one, you’d must spend about $2,780 at Amazon or Entire Meals throughout every subsequent yr to earn sufficient money again to interrupt even with the price of a Prime subscription.

The fee breakdown appears to be like like this: $139 Prime membership divided by 5% money again reward price = $2,780.

A 2024 Client Intelligence Analysis Companions evaluation discovered that the standard Amazon Prime member spends about $1,100 a yr with the retailer. That is not sufficient spending to justify getting a Prime membership for the only objective of getting the bank card.

If, for instance, you spend about $1,500 on Amazon and Entire Meals in a yr, that might earn you $75 money again, properly wanting the $139 Prime membership payment.

Nonetheless, for me, the Prime Visa is a workhorse in the case of purchasing at Amazon and Entire Meals. I spend way over I would prefer to admit there, so this card is a no brainer for my particular spending since I greater than recoup the annual payment.

Associated: The most effective bank cards for on-line purchasing

Different card advantages

With this card, you may additionally obtain a myriad of different advantages, together with:

These are some strong advantages, particularly for a card with no annual payment.

Associated: Earn factors, miles or money again: Methods to maximize on-line purchasing portals to your purchases

Calculating your Prime Visa worth

Figuring out whether or not it is price paying the Prime membership payment to get the Prime Visa is extraordinarily subjective. Some could discover unimaginable worth within the 5% money again on Amazon and Entire Meals purchases.

For those who’re an Amazon Prime member and regularly spend quite a bit with the net retail big, this card is probably going a very good match for you. There’s additionally worth within the membership due to the Prime Video and Amazon Music streaming providers, which extra simply justify the $139 annual value. Throwing in a rewards bank card on high of that’s simply icing on the cake.

Nonetheless, when you will not make the most of the extra Prime membership advantages and are contemplating getting Amazon Prime only for this card, do the maths to see whether or not you may earn sufficient with the cardboard’s welcome bonus and reward charges to justify the Prime membership value.

You may possible discover that you simply’re higher off utilizing a flat-rate cash-back or journey rewards bank card as a substitute.

Associated: Evaluating flat-rate with bonus-category cash-back bank cards

Backside line

For those who’re presently an Amazon Prime member, the Prime Visa has the potential to be a terrific no-annual-fee addition to your pockets. Plus, when you’re like me and regularly spend a portion of your finances on Entire Meals and Amazon purchases, the unequalled 5% reward price on these fees will web you a good amount of money again.

Nonetheless, in case you are not a Prime member or do not store at Amazon regularly, chances are you’ll wish to contemplate different playing cards, similar to ones that earn a versatile or transferable reward forex.

For extra info, learn our full evaluation of the Prime Visa.

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