Is the Prime Visa card worth the cost?

Amazon is the enormous within the room for straightforward, prompt entry to a whole lot of hundreds of various merchandise.

Whereas the Prime Visa (see rates and fees) would not technically have an annual price, certainly one of its caveats is that you must 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 wonderful time to make use of your Prime Visa should you’re an present cardholder or apply for it now and make the most of the welcome supply in your upcoming purchases.

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

Associated: 8 ways to save money on Amazon orders

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

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

Associated: The best credit card welcome bonuses this month

The Prime Visa earns money again. This card earns:

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

That is the most effective 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 also earn 7% again with no-rush supply on eligible gadgets.

There is not 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, it’s also possible to redeem your rewards for money again, present playing cards or journey at Chase.com.

Associated: Best cash-back credit cards

This needs to be your go-to card at Amazon and Entire Meals to maximise the limitless 5% money again. If you would like a easy card setup, you would pair this card with a 2% money rewards card just like the Wells Fargo Active Cash® Card (see rates and fees) 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, gasoline stations and native transit and commuting, just like the American Express® Gold Card, which earns 4 factors per greenback spent on eating places worldwide (on the primary $50,000 in purchases per calendar 12 months; then 1 level per greenback), and the Blue Cash Preferred® Card from American Express, which earns 3% money again at U.S. gasoline stations and native commuting and transit. (Money again is obtained within the type of Reward {Dollars} that may be redeemed as a press release credit score or at Amazon.com checkout.)

Associated: The best credit cards for Amazon purchases

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

However past the primary 12 months, you’d should spend about $2,780 at Amazon or Entire 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 Consumer Intelligence Research Partners evaluation discovered that the standard Amazon Prime member spends about $1,100 a 12 months with the retailer. That is not sufficient spending to justify getting a Prime membership for the only function of getting the bank card.

If, for instance, you spend about $1,800 on Amazon and Entire Meals in a 12 months, that may internet you $90 money again — properly in need of the $139 Prime membership price.

Associated: The best credit cards for online shopping

Different card advantages

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

These are some stable advantages, particularly for a card with no annual price.

Associated: Earn points, miles or cash back: How to maximize online shopping portals for your purchases

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

Should 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 prime of that’s simply icing on the cake.

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

Associated: Comparing flat-rate with bonus-category cash-back credit cards

If you have already got an Amazon Prime membership, the Prime Visa is a superb addition to your pockets because it has no annual price. You possibly can’t beat 5% money again each time, particularly should you spend rather a lot at Amazon or Entire Meals. Nonetheless, in case you are not a Prime member or wish to earn flexible points, you need to contemplate different playing cards.

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

Apply right here: Prime Visa