Is the Prime Visa card value the associated fee?

Amazon is the enormous within the room for simple, on the spot entry to lots of of 1000’s of various merchandise.

Whereas the Prime Visa (see charges and charges) does not technically have an annual charge, one among its caveats is that you need to be an Amazon Prime subscriber to qualify. A Prime membership prices $14.99 month-to-month or $139 yearly.

Amazon Prime Day started July 8 at 12:01 a.m. PDT and can run till midnight July 11. Since Prime Day is right here, it is a superb time to make use of your Prime Visa if you happen to’re an present cardholder or apply for it now and reap the benefits of the welcome provide to your upcoming purchases.

It is arduous to evaluate the worth of a Prime membership based mostly solely on the return you would possibly 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.

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Welcome provide

The Prime Visa at the moment provides a $250 Amazon reward card immediately upon approval, solely for Prime members.

You’re going to get it immediately upon approval. It is a strong bonus, particularly contemplating no spending is required, and you should use the reward card from day one.

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Incomes charges

The Prime Visa earns money again. This card earns:

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

That is one of the best constant return you will discover for Amazon purchases and a decent — if unremarkable— return on the two% classes. Additionally, for a restricted time throughout Prime Day (July 8 to 11), cardholders with an eligible Prime membership may earn 7% again with no-rush supply on eligible gadgets.

There isn’t any cap on the cash-back worth 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 also redeem your rewards for money again, reward playing cards or journey at Chase.com.

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How do you have to use the cardboard?

This must be your go-to card at Amazon and Complete Meals to maximise the limitless 5% money again. If you need 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 charges) to make sure you earn a minimum of 2% in your purchases.

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 on eating places worldwide (on the primary $50,000 in purchases per calendar yr; then 1 level per greenback), and the Blue Money Most popular® Card from American Specific, which earns 3% money again at U.S. fuel stations and native commuting and transit. (Money again is acquired within the type of Reward {Dollars} that may be redeemed as an announcement credit score or at Amazon.com checkout.)

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Incomes your membership charge again

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

However past the primary yr, you’d should spend about $2,780 at Amazon or Complete Meals throughout the next years to earn sufficient money again to repay a Prime subscription value.

This is the breakdown: $139 divided by $0.05 (5%) = $2,780

A 2024 Shopper Intelligence Analysis Companions evaluation discovered that the everyday 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 goal of getting the bank card.

If, for instance, you spend about $1,800 on Amazon and Complete Meals in a yr, that may internet you $90 money again — nicely wanting the $139 Prime membership charge.

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Different card advantages

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

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

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Calculating your Prime Visa worth

Figuring out whether or not it is value paying the Prime membership charge to get the Prime Visa is extraordinarily subjective. Some might discover unbelievable worth within the 5% again on Amazon and Complete Meals purchases.

In the event you’re an Amazon Prime member and spend rather a lot at Amazon, this card makes good sense for you. There’s additionally worth within the membership due to the Prime Video and Amazon Music streaming companies — simply justifying the $139 annual value. Throwing in a rewards bank card on high of that’s simply icing on the cake.

Nonetheless, if you happen to will not make the most of the Prime membership advantages and are contemplating getting Prime only for this card, fastidiously calculate whether or not you will earn sufficient on the cardboard to justify the Prime membership value. You will doubtless 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

If you have already got an Amazon Prime membership, the Prime Visa is a good addition to your pockets because it has no annual charge. You possibly can’t beat 5% money again each time, particularly if you happen to spend rather a lot at Amazon or Complete Meals. Nonetheless, in case you are not a Prime member or wish to earn versatile factors, it’s best to take into account different playing cards.

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

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Apply right here: Prime Visa