The Amazon Credit Card Review: Does It Make Sense to Sign Up?
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If you love to shop at Amazon we have good news for you. There are now two Amazon credit cards that offer generous rewards. The following review will help you decide which card is right for you and if they're good for resellers.
Amazon Prime Rewards Visa Signature Card
If you are an Amazon Prime member this card is a no brainer. You will receive 5% back on all Amazon purchases all year long. For loyal Amazon shoppers this could be significant.
Also, Amazon regularly offers a sign on bonus of $70 (issued as amazon credit). Unlike many store cards, there is no minimum spending requirement. The credit will be issued as soon as the card is approved so you can use it immediately.
Here are some of the highlights of the Amazon Prime Rewards card:
- 5% cash back at Amazon.com with an eligible Prime membership. If you don’t have a membership this would be a good time to try one out. Considering the $70 sign on bonus (when available), the $99 Prime membership essentially costs $29.
- 2% cash back at restaurants, gas stations and drug stores.
- 1% cash back on everything else.
- No annual fee, no earning caps and no foreign transaction fees.
Amazon Rewards Visa Signature Card
If you are not an Amazon Prime member this card is a good choice. It offers almost all the same perks as the Amazon Prime Rewards Visa and does not require you to have a Prime membership. It has zero yearly fees and (usually) a $50 Amazon.com gift card upon approval.
This is a review of the card’s features:
- 3% cash back on Amazon.com purchases.
- 2% cash back on gas station, restaurant, and drugstore purchases.
- 1% cash back on everything else.
- No annual fee, no earning caps ,and no foreign transaction fees.
Just like the Prime Rewards card, the rewards will be awarded in the form of points. Each point is worth $0.01, so 100 points equal $1. The best thing about this card is the ability to earn cash back on all sorts of purchases; Not only those made through Amazon. It serves a good everyday cash back credit card!
However, if you are not a frequent Amazon shopper, this may not be the best card for you. The APR ranging from 14.40 to 22.49% is rather steep - but I would never suggest you get a credit card and carry a balance/pay interest!
Amazon Prime Store Card
This is the third card Amazon offers, but it's a bit different than the other two. The other two cards are credit cards where as this is a store card. What that means, is you can only use this card on Amazon.com. It cannot be used anywhere else like a normal credit card can.
This card also requires a Prime membership similar to the Amazon Prime Rewards Visa Signature Card and it occasionally features a $40 sign-up bonus after approval.
Here are the perks:
- 5% cash back as a statement credit on Amazon.com purchases OR promotional 6,12, and 24 month financing options.
Out of the three cards offered, this is, in my opinion, the worst one. It doesn't offer many perks and the sign-up bonus (when it's offered) is worse.
What Are the Benefits of Both Credit Cards?
Since I don't recommend anyone get the Prime store card, we'll just compare the two credit cards.
If you are a frequent Amazon.com shopper these are both great cards. Without this in your arsenal, you would be missing out on the unlimited cash back and other rewards. The Amazon Rewards Visa and Prime Rewards Visa do not have a cap, which makes them ideal cards to use on all of your Amazon purchases! If you shop on Amazon a lot these rewards can add up quickly.
Also, keep in mind these rewards no not expire. Card holders do not need to worry about using up their rewards by a certain date and they can be used right in the Amazon checkout page for your convenience!
The Amazon Prime card allows you to use your Prime perks and still get cash back for them. Prime members enjoy free two-day shipping and unlimited TV and movies with Prime Video. All devoted Amazon shoppers will appreciate this benefit.
These cards also offer high cash back on Amazon, be it 5% or 3%. This is a high percentage that is pretty rare to be found through other credit cards.
Other perks of both Amazon Rewards Visa cards include:
- No foreign transaction fees.
- Travel and emergency assistance.
- Lost luggage reimbursement.
- Baggage delay insurance.
- Roadside dispatch.
- Travel accident insurance.
- Auto rental collision damage insurance (not primary).
- Purchase protection.
- Extended warranty protection.
What Are the Downsides to These Cards?
The biggest downside to these cards is the low sign-up bonus. Many times, you can get a significantly better bonus from other cards.
There is also not an introductory period of zero percent, which is a bummer for resellers. This is often offered by other cards to attract big ticket item purchases or balance transfers. And if you are interested in a card to pay off debt there are probably better choices out there for you. Also, you will need good credit to obtain these cards.
Alternative Option
An Alternative way to get 5% back on all Amazon purchases is to use a Chase Ink Business card to purchase Amazon.com gift cards from office supply stores. These cards earn 5X points on all office supply store purchases, so you'll effectively earn the same amount of points as the Amazon credit cards. Those points can then be either transferred to travel partners or used as cash back at 1 point = $0.01.
The Downside to This Option
The downside to this option is that you don't get any credit card protection on your Amazon purchases. That means you'd be missing out on purchase protection (if the price drops) and the extended warranty.
Are These Good For Resellers?
In my opinion, these are not good credit card for resellers. For one, the Prime card wouldn't work since you cannot purchase resale-able items via Prime - so you can't get 5% cash back. And for two, since you'd be reselling the product(s) anyway, the credit card perks don't matter. Resellers are much better off using the Ink/gift card method.
Are These Cards Worth It? If So, Which One?
This review of the Amazon Rewards credit cards has shown that these two are strong contenders in the world of reward cards for average consumers. Having a credit card that is dedicated to Amazon can be great news for customers who already shop there a lot.
Both cards have some really nice perks. The first being no annual fee. This is pretty rare in the rewards card market with a card that earns 5% cash back. They also both offer high returns on purchases. This could add up to a lot of cash in your pocket. The $70 or $50 sign on bonus is not too shabby either (when available). This really makes a Prime membership affordable if you do not already have one.
If you are a year-round Amazon shopper this card is for you. Both cards also offer impressive rewards in other spending categories. Two percent cash back on gas station, restaurant and drugstore spending is generous, but also relatively standard. This makes both cards versatile for everyday spending. However, if you do not ever shop at Amazon there are probably cards that would serve you better. These cards might offer a higher rewards structure in other categories.
If you already have a Prime membership and currently shop on Amazon, the Prime card is a great choice for you. You will earn a generous return and get paid for using your Prime benefits. It’s like double dipping on your rewards. If you are thinking about getting a Prime membership you should get this card. It offers a $70 Amazon gift card (usually) which will offset the cost of the membership significantly.
If you are not interested in becoming a Prime member, the Amazon Rewards Visa could still be an excellent choice. It offers a high rate of return without fees. Unlimited earning potential also makes this card attractive. However, if you have poor credit or are looking for a card to manage debt this is not a good choice. It has relatively high APRs and fees for balance transfers and cash advances.
After a review of both cards, I think the Amazon Prime Rewards Visa Signature card stands out over the original Amazon Rewards card. It offers a greater cash back percentage and a higher sign on bonus. Also, if you are a loyal Amazon shopper it’s great to be a Prime member. This card would be a valuable addition to your wallet.
