This is one of the best credit cards to save on groceries and online shopping
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Most of us have sat patiently (or not so patiently) waiting for an Amazon package in the last few months. According to Amazon’s Q2 report, the company’s net sales are up an astounding 40%, hitting $88.9 billion for the quarter.
Since the e-commerce giant asks if you want to sign up for faster delivery every time you check out, you’re probably well aware of the free two-day shipping perk that comes with an Amazon Prime membership.
But there’s another benefit you may not know about—members who have the Amazon Prime Rewards Visa Signature Card earn 5% cash back at Amazon.com and Whole Foods Market, including physical locations and online. We'll dig into some of the finer details below.
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Amazon Prime Rewards Visa Signature Card
Here are some highlights from the card's terms and conditions at the time of publishing—which are subject to change. As always, read over the cardholder agreement before applying for a new account.
Annual fee: None with an Amazon Prime membership
Introductory offer: $70 Amazon gift card upon approval
Regular APR: 14.24% to 22.24%
Balance transfer APR: 14.24% to 22.24%
Balance transfer fee: $5 or 5% (whichever is greater)
Foreign transaction fees: None
Points: 5% cash back at Amazon.com and Whole Foods Market; 2% on dining, gas, and drugstore spending; 1% on everything else
Learn more about the Amazon Prime Rewards Visa Signature
Who should get the Amazon Prime Rewards card?
As the name suggests, this credit card issued by Chase is for Amazon Prime members. Prime members earn the full 5% cash back for shopping at Amazon or Whole Foods.
Cardholders who don’t maintain Prime membership earn 3% cash back in that top category, which still isn’t too shabby. If you’ve noticed an uptick in your online shopping during the pandemic, racking up rewards cash on the card could help you pay for future Amazon purchases.
Say you spend $200 per month on paper towels, toilet paper, and other necessities at Amazon, and $600 per month on groceries at Whole Foods Market.
Swiping the Amazon Prime Rewards Visa Signature Card could land you $40 worth of points that you can use on your next haul (or $24 if you’re not an eligible Prime member).
What points do you get with the Amazon Prime Rewards card?
Here’s a rundown of the credit card offer and its various bonus categories:
5% at Amazon and Whole Foods Market for Prime members
3% at Amazon and Whole Foods Market for non-Prime members
2% at restaurants, gas stations, and drugstores
1% cash back on everything else
Upon approval, cardholders also get a $70 Amazon gift card.
Rewards are tracked in points—100 points equals $1 to spend on eligible items. While checking out at Amazon, you can review your rewards balance and see what items in your cart can be paid for with points, which can also be redeemed for cash back, gift cards, and travel through the Chase website.
What perks do you get with the Amazon Prime Rewards card?
The card comes with several travel benefits, including no foreign transaction fee. If you travel with the Amazon Prime Rewards Visa Signature Card, you may qualify for travel accident insurance coverage of up to $500,000.
Additionally, if the airline misplaces or damages your or your immediate family members' carry-on or checked luggage, you may be covered up to $3,000 per passenger. You might also get reimbursed for up to $100 per day in toiletry costs if your luggage is delayed more than six hours.
Although travel is restricted now, these benefits could be worthwhile when borders reopen, and COVID-19 is under control.
Aside from travel-related perks, the card offers Zero Fraud Liability and a rental damage waiver. There’s also purchase protection that covers purchases for up to 120 days with a limit of $500 per claim.
How does the Amazon Prime Rewards card compare to others?
The Amazon Prime Rewards Visa Signature Card isn’t the only Amazon card on the block—there’s also the Amazon.com Store Card issued by Synchrony Bank.
This store card also gives 5% cash back when you check out at Amazon.com if you’re a Prime member. Plus, certain store card purchases may qualify for 0% financing for 6, 12, or 24 months. But the standard interest rate is quite a bit higher.
Keep in mind: Amazon shoppers also have the option “pay with points” earned from American Express, Capital One, Discover, Citi, Chase, and Hilton Honors rewards programs. So if you’re racking up rewards elsewhere, you may not need an Amazon-specific card to offset your online shopping.
However, you need to pay careful attention to point value when shopping with points from other programs. The conversion could be less than one dollar to spend per 100 points earned.
What drawbacks does the Amazon Prime Rewards card have?
The Amazon Prime Visa card has no annual fee, but there is a string attached—you need to be an Amazon Prime member to qualify for 5% back. Currently, Prime membership is $12.99 per month or $119 for the year. Student Prime members pay $6.49 per month or $59 for the year, and score a few extra perks like reduced subscription rates for Amazon Music Unlimited and Prime Video Channels.
What if you’re not a Prime member? All isn’t lost.
If you know someone who is, you may be able join their Amazon household to unlock the card’s 5% offer without having to get your own Prime account.
However, there is some fine print related to eligibility rules. If you’re a Prime member’s guest who is only getting shipping benefits, you’ll earn just 3% cash back in the 5% category.
Here are some scenarios where you’ll be downgraded from 5% cash back to 3% cash back:
If you stop paying for Amazon Prime membership
If you close your Amazon account
If you unlink your Amazon Prime Rewards card from your Prime account
If you're no longer part of an Amazon Prime household
How does the Amazon Prime Rewards card rank in our reviews?
This card makes our list as one of the best grocery cards for Amazon lovers and Whole Foods shoppers. In general, you’ll be hard-pressed to find another rewards card that offers 5% back and doesn’t have fees or spending limits. If you shop at Amazon often, this card is worth at least checking out.
If you’re looking for a card to cash in on your grocery hauls but you don’t frequent Whole Foods, we have some other suggestions. The Blue Cash Preferred card from American Express tips the scales with a 6% rewards rate at U.S. supermarkets—though there's an annual cap of $6,000—and you'll pay a $95 fee every year.
You can also rake in the cash back with the Blue Cash Everyday from American Express. It offers a lower rate at 3%—and, again, has an annual spending cap of $6,000—but it does lack an annual fee.
In other words, if you're looking to cash in on your increased grocery spending, you have options.
So, should you get the Amazon Prime Rewards Visa Signature Card?
Adding this to your wallet could be an easy decision for Prime members who do a majority of their shopping at Amazon.
Some customers who have left credit card reviews on Amazon complain about Chase customer service, so that’s something to watch for if you decide to go with the card.
If you’re not already a Prime member and considering signing up just to take advantage of the 5% cash back, do a bit of math first. Think about whether you’ll earn enough to substantiate the annual Prime membership fee before joining.
Learn more about the Amazon Prime Rewards Visa Signature
Things to know about credit cards
Long introductory period APR rates are only a short-term incentive. Potentially high APR rates snap into effect after the card’s intro period ends, which could cost you a lot in interest if you’ve left your balance unpaid. It’s really important—especially when getting a card for a big purchase—to keep an eye on your finances and keep an eye on the calendar.
APR rates and credit limits vary based on your individual credit. Credit limits and interest rates for each card are determined based on each cardholder's personal situation, so we did not take that information into account when evaluating these cards. Remember to pay your card off in full every month, so you will not be charged interest.
Banks have the final say on who they accept for a credit card. These recommendations were put together with the assumption that applicants would have average credit or above. That being said, banks decide who they will issue credit cards to using criteria including, but not always limited to, an individual's credit score when evaluating each applicant.
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This article originally appeared on Reviewed.com: Amazon Prime members can majorly save with this credit card
