Is the Prime Visa Worth It?

If you’re a big fan of Amazon.com, then you might be considering one of the top cards for online shopping on the market today — the Prime Visa card. With Prime Big Deal Days quickly approaching (October 8th and 9th, 2024), this card can help you save even more on your Amazon.com purchases.

The Prime Visa card offers Amazon Prime members an exceptional rewards rate of 5 percent cash back on Amazon.com, Amazon Fresh, Whole Foods Market and Chase TravelSM purchases, which can add up fast. Since this card is part of the Visa Signature credit card family, you’ll also get extra benefits that include extended warranties, purchase protections, zero fraud liability, travel accident insurance, baggage delay insurance, lost luggage reimbursement and auto rental collision damage waiver, to name a few. Plus, it technically doesn’t charge an annual fee, and for a limited time, Prime members can even earn a free $150 Amazon.com gift card just for signing up.

But with so many rewards credit cards out there, how can you tell if this card deserves a place in your wallet? Let’s look at this card’s features to see what it offers and who’d benefit most from the rewards, perks and benefits.

When is the Prime Visa worth it?

While everyone has their own preferences when it comes to which rewards cards are best, the Prime Visa is almost always worth it in the following scenarios:

You spend a ton of money on Amazon.com purchases each month

The 5 percent cash back rate on Amazon.com purchases is the major draw of this card, and let’s not forget this earning rate applies to online purchases (including Prime Big Deal Days and Amazon Fresh purchases) and those made in physical Amazon stores. If you spend $500 with Amazon.com each month, which isn’t out of the question for many families, you would rack up $300 in rewards with this card each year on those purchases alone.

Additionally, with the Prime Card Bonus, this card earns 10 percent cash back (or more) on purchases of rotating goods and categories at Amazon.com. These are limited time offers, however, and the bonus only applies to certain purchases — which means you can only take advantage of this boosted earnings rate if you’re purchasing a specific item at the right time.

You shop at Whole Foods Market

Remember that the 5 percent cash back rate also applies to Whole Foods Marketplace purchases, and there are no limits to the amount of rewards you can earn. If you do most of your grocery shopping at Whole Foods, it’s easy to see how you could quickly rack up rewards with this card.

As an example, the United States Department of Agriculture (USDA) says that the average family with two adults and two kids (ages 8 and 10) spent $1,318.80 per month on a moderate food plan as of August 2024. If this family spent just $1,000 of their grocery budget at Whole Foods each month, they would earn $600 in cash back over the course of a year with this card.

You use the Chase Travel portal

The Visa Prime card also earns 5 percent back on purchases made through Chase Travel. Although this card won’t be mistaken for a top travel credit card, this is still a great earnings rate on travel purchases — provided you use the Chase portal to book your travel.

You want to avoid unnecessary credit card fees

The Amazon Visa Prime card doesn’t charge an annual fee, nor does it charge foreign transaction fees on purchases made abroad or from foreign online stores. That makes the card a good option to keep for the long haul, as well as one you can use for overseas trips if you prefer. As mentioned previously, however, you are required to have an Amazon Prime membership to be eligible — although you may already be paying the $139 annual membership fee if you’re a regular Amazon shopper.

When is the Prime Visa not worth it?

While the instances above show when the Prime Visa can be worth it, there are times when another card might leave you better off. Here are some examples of those times:

You don’t shop at Amazon or Whole Foods

This should go without saying, but if you do not shop at Amazon or Whole Foods regularly — either because there’s no Whole Foods in your area or because you prefer to patronize local retailers — this card may have limited utility for you. However, because it does offer elevated rewards on restaurants, gas stations, local transit and commuting, it may still be worth considering if you spend regularly in these categories (or if you’ve maxed out your benefits on other cards that reward these types of spending).

You carry a balance from time to time

Using the Prime Visa may not be worth it if you occasionally carry a balance — especially if you do so on a regular basis. Where some rewards credit cards offer a 0 percent introductory APR on purchases for a limited time, the Amazon Prime Visa does not.

In fact, this card charges a variable APR, or annual percentage rate, of 19.99 percent to 28.74 percent. You’ll likely pay more in interest than you’ll earn in rewards when you carry a balance from one month to the next.

You want a credit card with luxury travel perks

Also note that, outside of the 5 percent back on Chase Travel purchases and a few travel insurance benefits, the Amazon Prime Visa benefits don’t include travel-specific perks. If you want annual travel credits, elite status with a travel brand, airport lounge access or other travel benefits, you’ll have to consider other rewards credit cards instead.

Should you get the Prime Visa?

If you spend a lot of money with Amazon.com and Whole Foods, then you should absolutely consider the Prime Visa card. After all, there aren’t many other rewards cards on the market today that always offer such an exceptional rate on these purchases — and you won’t have to pay an annual fee, either.

You can even pair this card with another rewards card that offers more points in other categories, such as a travel credit card for travel purchases or a card that offers more rewards on groceries, entertainment or dining out.

The bottom line

At the end of the day, the Prime Visa offers one of the highest rates of cash back for spending categories that are common for most families. If you already have a Prime membership that you find to be worth it, the card will likely complement your spending.

Even better, there is still time to get the card before Amazon.com’s Prime Big Deal Days on October 8th and 9th, 2024. Simply combine your card’s 5 percent cash back earnings with the sales during Prime Big Deal Days to save even more.