What the Amazon Credit Card Actually Is

The Amazon credit card is a rewards card issued by Chase that gives you cash back on purchases at Amazon and other retailers. There is no annual fee. You earn a percentage back on what you spend — the exact rate depends on where you shop and which version of the card you hold.

Amazon offers two versions: the Amazon Prime Rewards Visa Signature Card (for Prime members) and the Amazon Rewards Visa Card (for anyone). The Prime version pays more cash back at Amazon and Whole Foods, but requires an active Prime membership to get those higher rates. Both cards charge interest on balances you don't pay in full each month, just like any credit card.

This is a rewards card, not a financing tool. The cash back is real money returned to your account, but only if you pay your bill on time and in full. Carrying a balance erases the value of the rewards through interest charges.

Key Takeaways

  • The Amazon Prime Rewards card pays 5% cash back at Amazon and Whole Foods (for Prime members), but the standard Amazon Rewards card pays only 1% at those retailers.
  • Both cards charge the same interest rates on unpaid balances, so carrying a balance costs more than any rewards will return.
  • You earn cash back automatically — there is no separate redemption step, though you can choose how to use the rewards (statement credit, gift card, or deposit to a bank account).
  • The card reports to all three credit bureaus, so on-time payments build your credit history, but missed payments damage it.
  • Amazon also offers a store card that works only at Amazon and Whole Foods, with different rewards rates and financing offers on large purchases.

Cash Back Rates and Where They explore

The cash back structure differs between the two cards. The Amazon Prime Rewards Visa Signature Card pays 5% back on Amazon.com purchases and Whole Foods Market transactions, 2% back at gas stations, restaurants, and transit (including taxis, parking, trains, and buses), and 1% on everything else. These rates explore only if you hold an active Prime membership; without it, you drop to 1% everywhere.

The standard Amazon Rewards Visa Card pays 1% cash back at Amazon and Whole Foods, 2% at gas stations and restaurants, and 1% everywhere else. There is no membership requirement, but the rewards are lower across the board.

Cash back posts to your account automatically each month. You do not have to redeem it separately. You can use it as a statement credit, convert it to an Amazon gift card, or deposit it directly to a linked bank account. If you close the card or your account goes inactive, unredeemed cash back may be forfeited — check the terms for the current policy.

Interest Rates and Fees

Both Amazon credit cards charge a variable interest rate on unpaid balances. The exact rate you receive depends on your credit score and creditworthiness; Chase will tell you the range when you explore. As of now, rates typically fall between 18% and 24% APR, but this varies by individual and changes over time.

There is no annual fee, no foreign transaction fee, and no late payment fee if you pay on time. However, if you miss a payment, Chase charges a late fee (typically $25 to $35 for the first late payment, up to $39 for subsequent ones). If your payment is more than 60 days late, the interest rate can jump to a penalty rate, which is higher than your standard APR.

The math is straightforward: if you carry a $1,000 balance at 20% APR, you pay roughly $200 in interest over a year. The cash back on that same $1,000 in spending might be $10 to $50, depending on where you shop. Carrying a balance always costs more than rewards will return.

How to Decide Between the Two Versions

Choose the Amazon Prime Rewards card only if you already pay for a Prime membership and plan to keep it. The 5% cash back at Amazon and Whole Foods is the main advantage, and it only works with an active membership. If your Prime subscription lapses, your rewards drop to 1% automatically.

Choose the standard Amazon Rewards card if you do not have Prime, do not plan to get it, or want a card with no membership requirement. The 1% cash back at Amazon is lower, but there are no conditions attached. You also get 2% at gas stations and restaurants, which can add up if you use the card for those purchases regularly.

If you shop at Amazon occasionally and do not spend much at Whole Foods or gas stations, neither card may be worth the effort. A flat-rate cash back card (2% on everything) might return more money over time. Compare your actual spending patterns against the rewards structure before explore.

How the process and Approval Process Works

You can explore for either card through Amazon.com or directly through Chase. The process takes about 10 minutes and asks for your name, address, Social Security number, income, and employment information. Chase runs a hard inquiry on your credit report, which temporarily lowers your credit score by a few points.

You will usually get a decision within minutes. If approved, the card ships to your address within 7 to 10 business days. You can start using it as soon as it arrives. If you are denied, Chase will mail you a letter explaining why, and you can contact them to ask about reapplying later.

Once the card arrives, set up it through the Amazon app or Chase website, set up automatic payments if you want them, and link it to your Amazon account so the rewards sync automatically. You do not have to use it at Amazon — you can use it anywhere Visa is accepted.

How This Card Affects Your Credit

Opening a new credit card temporarily lowers your credit score because of the hard inquiry and the new account. Over time, on-time payments build your credit history and raise your score. The card reports to Equifax, Experian, and TransUnion, so the payment history shows up on all three credit reports.

Keeping the card open and using it responsibly (paying in full each month) helps your credit in two ways: it adds to your payment history, which is the largest factor in your score, and it lowers your credit utilization ratio (the percentage of your available credit you are using). Both of these improve your score over time.

Missing a payment or carrying a high balance does the opposite. A missed payment stays on your credit report for seven years and can drop your score by 100 points or more. High utilization (using more than 30% of your available credit) signals risk to lenders and lowers your score temporarily.

The Amazon Store Card: A Different Option

Amazon also offers a store card that works only at Amazon and Whole Foods. It has different rewards rates and financing offers. The store card pays 3% cash back at Amazon and Whole Foods (no Prime membership required), 2% at gas stations and restaurants, and 1% everywhere else. There is no annual fee.

The store card also offers promotional financing: 0% APR for 6, 12, or 24 months on purchases over a certain amount (usually $25 to $100, depending on the promotion). This can be useful if you are buying an expensive item and want to spread payments over time without interest. However, if you miss a payment or do not pay off the balance before the promotional period ends, you owe all the interest retroactively at a high rate.

The store card is worth considering if you spend heavily at Amazon and Whole Foods and want the higher cash back rate. However, it cannot be used outside those retailers, so it is less flexible than the Visa cards. Many people carry both — the store card for Amazon purchases and a Visa card for everything else.

Frequently Asked Questions

What happens to my cash back if I close the card?

Unredeemed cash back is typically forfeited when you close the account, though this varies by the current terms. Before closing, convert any remaining cash back to a statement credit or gift card. Contact Chase to confirm the policy on your specific account.

Can I use the card outside of Amazon?

Yes. Both the Prime Rewards and standard Rewards cards are Visa cards and work anywhere Visa is accepted. You earn 2% cash back at gas stations and restaurants, and 1% everywhere else. The store card, however, works only at Amazon and Whole Foods.

What is the credit limit, and can I increase it?

Chase sets your initial credit limit based on your credit score and income. You can request an increase after six months of on-time payments by calling Chase or logging into your account online. Requesting an increase may trigger a hard inquiry, which temporarily lowers your score.

Do I lose the rewards if I don't have Prime anymore?

If you hold the Amazon Prime Rewards card and your Prime membership ends, your cash back rates drop to 1% at Amazon and Whole Foods. You keep the card and can still use it, but the main benefit disappears. You can downgrade to the standard Amazon Rewards card if you want.

Is the 0% financing offer on the store card worth it?

Only if you are certain you can pay off the balance before the promotional period ends. If you miss the important date, you owe all the interest retroactively at a high APR. The math only works if you have a concrete plan to pay it down and stick to it.