Is the Prime Visa card value the price?

Amazon is the enormous within the room for simple, prompt entry to tons of of 1000’s of various merchandise.

Whereas the Prime Visa (see charges and costs) would 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 wonderful time to make use of your Prime Visa in the event you’re an present cardholder or apply for it now and reap the benefits of the welcome provide on your upcoming purchases.

It is arduous 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 contains so many different tangible advantages — however for argument’s sake, we will attempt.

Associated: 8 methods to save cash on Amazon orders

Welcome provide

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

You’ll get it immediately upon approval. This can be a strong bonus, particularly contemplating no spending is required, and you should use 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), fuel 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 — 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 may earn 7% again with no-rush supply on eligible objects.

There is no cap on the cash-back worth you’ll be able to earn, and you may redeem your rewards to pay for all or a part of your Amazon purchases. Along with money again, you may also redeem your rewards for money again, present playing cards or journey at Chase.com.

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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. If you’d like a easy card setup, you can pair this card with a 2% money rewards card just like the Wells Fargo Lively Money® Card (see charges and costs) to make sure you earn at the very least 2% in your purchases.

Nevertheless, a number of playing cards earn at the very least 3% or extra on eating places, fuel 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 popular® Card from American Categorical, which earns 3% money again at U.S. fuel 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.)

Associated: The most effective bank cards for Amazon purchases

Incomes your membership charge 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.

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 goal of getting the bank card.

If, for instance, you spend about $1,800 on Amazon and Complete Meals in a 12 months, that will web you $90 money again — nicely in need of 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 strong advantages, particularly for a card with no annual charge.

Associated: Earn factors, miles or money again: Learn how to maximize on-line procuring portals on your purchases

Calculating your Prime Visa worth

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

If you happen to’re an Amazon Prime member and spend quite a bit 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 value. Throwing in a rewards bank card on prime of that’s simply icing on the cake.

Nevertheless, in the event 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 value. You may seemingly 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 superb addition to your pockets because it has no annual charge. You may’t beat 5% money again each time, particularly in the event you spend quite a bit at Amazon or Complete Meals. Nevertheless, in case you are not a Prime member or wish to earn versatile factors, it’s best to contemplate different playing cards.

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

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Apply right here: Prime Visa