Amazon is the enormous within the room for straightforward, instantaneous entry to a whole lot of hundreds of various merchandise.
Whereas the Prime Visa (see charges and charges) does not technically have an annual price, one among its caveats is that it’s a must 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 wonderful time to make use of your Prime Visa if you happen to’re an current cardholder or apply for it now and benefit from the welcome supply in your upcoming purchases.
It is arduous to evaluate the worth of a Prime membership based mostly solely on the return you may get utilizing the net retailer’s bank card — as a result of membership contains so many different tangible advantages — however for argument’s sake, we will strive.
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Welcome supply
The Prime Visa at the moment presents a $250 Amazon reward card immediately upon approval, solely for Prime members.
You’ll get it immediately upon approval. This can be a stable bonus, particularly contemplating no spending is required, and you need to use the reward card from day one.
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Incomes charges
The Prime Visa earns money again. This card earns:
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- 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 good — 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 also can earn 7% again with no-rush supply on eligible objects.
There is not any cap on the cash-back worth you’ll be able to earn, and you’ll redeem your rewards to pay for all or a part of your Amazon purchases. Along with money again, you may as well 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 needs to 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 possibly can pair this card with a 2% money rewards card just like the Wells Fargo Lively Money® Card (see charges and charges) to make sure you earn no less than 2% in your purchases.
Nonetheless, a number of playing cards earn no less than 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 12 months; 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 obtained within the type of Reward {Dollars} that may be redeemed as a press release credit score or at Amazon.com checkout.)
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Incomes your membership price 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 12 months, you’d must spend about $2,780 at Amazon or Complete Meals throughout the next years to earn sufficient money again to repay a Prime subscription value.
Here is the breakdown: $139 divided by $0.05 (5%) = $2,780
A 2024 Client Intelligence Analysis Companions 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 objective of getting the bank card.
If, for instance, you spend about $1,800 on Amazon and Complete Meals in a 12 months, that will internet you $90 money again — effectively in need of the $139 Prime membership price.
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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 factors, miles or money again: Easy methods to maximize on-line purchasing portals in your purchases
Calculating your Prime Visa worth
Figuring out whether or not it is value paying the Prime membership price to get the Prime Visa is extraordinarily subjective. Some could discover unbelievable worth within the 5% again on Amazon and Complete Meals purchases.
In case you’re an Amazon Prime member and spend lots 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, rigorously calculate whether or not you will earn sufficient on the cardboard to justify the Prime membership value. You will probably discover that you just’re higher off utilizing a flat-rate cash-back or journey rewards bank card as an alternative.
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 price. You possibly can’t beat 5% money again each time, particularly if you happen to spend lots at Amazon or Complete Meals. Nonetheless, in case you are not a Prime member or need to earn versatile factors, it’s best to contemplate different playing cards.
For extra info, learn our full evaluation of the Prime Visa.
Apply right here: Prime Visa
