Is the Prime Visa card price the associated fee?

Amazon is the large within the room for straightforward, instantaneous entry to lots of of 1000’s of various merchandise.

Whereas the Prime Visa (see charges and charges) does not technically have an annual charge, one among its caveats is that it’s important 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 superb time to make use of your Prime Visa should you’re an present cardholder or apply for it now and reap the benefits of the welcome supply on your upcoming purchases.

It is exhausting 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 consists of so many different tangible advantages — however for argument’s sake, we’ll strive.

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Welcome supply

The Prime Visa presently affords a $250 Amazon present card immediately upon approval, completely for Prime members.

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

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Incomes charges

The Prime Visa earns money again. This card earns:

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

That is one of the best constant return you may 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 gadgets.

There is no 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 too can redeem your rewards for money again, present playing cards or journey at Chase.com.

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How must you use the cardboard?

This ought 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 would 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 at the least 2% in your purchases.

Nonetheless, a number of playing cards earn at the least 3% or extra on eating places, gasoline stations and native transit and commuting, just like the American Categorical® 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 well-liked® Card from American Categorical, which earns 3% money again at U.S. gasoline stations and native commuting and transit. (Money again is acquired 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 charge again

Now, let’s determine your break-even price 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 Complete Meals throughout the next years to earn sufficient money again to repay a Prime subscription price.

This is the breakdown: $139 divided by $0.05 (5%) = $2,780

A 2024 Client Intelligence Analysis Companions evaluation discovered that the everyday 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 real 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 — nicely wanting the $139 Prime membership charge.

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Different card advantages

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

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

Associated: Earn factors, miles or money again: The best way to maximize on-line purchasing portals on your purchases

Calculating your Prime Visa worth

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

If you happen to’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 providers — simply justifying the $139 annual price. Throwing in a rewards bank card on high 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, rigorously calculate whether or not you may earn sufficient on the cardboard to justify the Prime membership price. You will probably discover that you simply’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 charge. You’ll be able to’t beat 5% money again each time, particularly should you spend lots at Amazon or Complete Meals. Nonetheless, if you’re not a Prime member or wish to earn versatile factors, it is best to take into account different playing cards.

For extra data, learn our full evaluation of the Prime Visa.

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Apply right here: Prime Visa