Is the Prime Visa card price the fee?

In the case of on-line retailers, Amazon is the large within the room.

Whereas the Prime Visa (see charges and charges) would not technically have an annual payment, one in every of its caveats is that you need to be an Amazon Prime member to qualify. A Prime membership prices $139 per yr (or $14.99 per thirty days).

It is arduous to evaluate the worth of a Prime membership primarily based solely on the return you may 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 attempt.

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Welcome supply

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

This is a superb bonus, particularly whenever you think about that no spending is required, and you should use the present card beginning on day one. This matches the all-time bonus we have seen on this card, which was beforehand supplied solely as soon as final July for a restricted interval.

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Incomes charges

The Prime Visa earns money again on the following charges:

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

That is the very best constant return you may discover for Amazon purchases and a decent return on the two% classes.

There is no cap on the money again you may earn, and you’ll redeem your rewards to pay for all or a part of your Amazon purchases. Along with money again, you can even redeem your rewards for present playing cards or journey.

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How do you have to use the cardboard?

This must be your go-to card at Amazon and Complete Meals to maximise the limitless 5% money again. In order for you 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) or the Citi Double Money® Card (see charges and charges) to make sure you earn at the least 2% throughout your purchases (with the Citi Double Money, you earn 1% money again whenever you purchase and 1% money again whenever you pay).

Nevertheless, 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 Specific® Gold Card, which earns 4 factors per greenback spent at eating places worldwide (on the primary $50,000 in purchases per calendar yr; then 1 level per greenback), and the Blue Money Most popular® Card from American Specific*, which earns 3% money again at U.S. gasoline stations and on native commuting and transit.

*Money again is obtained within the type of Reward {Dollars} that may be redeemed as an announcement credit score and at Amazon.com checkout.

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Incomes your membership payment again

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

Through the first yr, you internet about $110 whenever you subtract the Prime membership value from the welcome present card worth. After yr one, you’d have to spend about $2,780 at Amazon or Complete Meals throughout every subsequent yr to earn sufficient money again to interrupt even with the price of a Prime subscription.

The fee breakdown appears like this: $139 Prime membership divided by 5% money again reward fee = $2,780.

A 2024 Shopper Intelligence Analysis Companions evaluation discovered that the everyday Amazon Prime member spends about $1,100 a yr 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 $1,500 on Amazon and Complete Meals in a yr, that might earn you $75 money again, effectively wanting the $139 Prime membership payment.

Nevertheless, for me, the Prime Visa is a workhorse with regards to purchasing at Amazon and Complete Meals. I spend excess of I might prefer to admit there, so this card is a no brainer for my particular spending since I greater than recoup the annual payment.

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Different card advantages

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

These are some strong advantages, particularly for a card with no annual payment.

Associated: Earn factors, miles or money again: How one can 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 payment to get the Prime Visa is extraordinarily subjective. Some might discover unimaginable worth within the 5% money again on Amazon and Complete Meals purchases.

In the event you’re an Amazon Prime member and regularly spend lots with the web retail big, this card is probably going match for you. There’s additionally worth within the membership due to the Prime Video and Amazon Music streaming providers, which extra simply justify the $139 annual value. Throwing in a rewards bank card on prime of that’s simply icing on the cake.

Nevertheless, in case you will not make the most of the extra Prime membership advantages and are contemplating getting Amazon Prime only for this card, do the mathematics to see whether or not you may earn sufficient with the cardboard’s welcome bonus and reward charges to justify the Prime membership value.

You will possible discover that you just’re higher off utilizing a flat-rate cash-back or journey rewards bank card as a substitute.

Associated: Evaluating flat-rate with bonus-category cash-back bank cards

Backside line

In the event you’re at the moment an Amazon Prime member, the Prime Visa has the potential to be an awesome no-annual-fee addition to your pockets. Plus, in case you’re like me and regularly spend a portion of your finances on Complete Meals and Amazon purchases, the unmatched 5% reward fee on these costs will internet you a good amount of money again.

Nevertheless, if you’re not a Prime member or do not store at Amazon regularly, you might need to contemplate different playing cards, akin to ones that earn a versatile or transferable reward forex.

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

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