Amazon Rewards Card: 3% Cash Back For Shopaholics

Amazon Rewards Card: 3% Cash Back For Shopaholics

Editorial Note: The content of this article is based on the author’s opinions and recommendations alone. It may not have been reviewed, approved or otherwise endorsed by the credit card issuer. This site may be compensated through a credit card issuer partnership.

Editor's Rating

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3% Amazon.com rewards,and 2% back on gas station, restaurant and drugstore purchases. Overall, a good deal

Good For

  • The highest, and unlimited, rewards rate on Amazon.com purchases of 5%; 0% APR financing options on select purchases

Bad For

  • No major card network affiliation makes it useless outside of Amazon.com purchases; Extremely high APR of 25.99%; Available only to Amazon Prime members (annual membership fee of $99)
Amazon Rewards Card
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Editor's Rating

?
{"onCurrent":true,"message":"Our team rates credit cards objectively based on independent research, the features the credit card offers users, and how it compares with other available cards in its category. The ratings are the opinion of our editors, and are not influenced by any outside factors, including any compensation the site may receive from certain advertisers.","showIcon":false,"tooltipLabel":"?"}

3% Amazon.com rewards,and 2% back on gas station, restaurant and drugstore purchases. Overall, a good deal

Good For

  • The highest, and unlimited, rewards rate on Amazon.com purchases of 5%; 0% APR financing options on select purchases

Bad For

  • No major card network affiliation makes it useless outside of Amazon.com purchases; Extremely high APR of 25.99%; Available only to Amazon Prime members (annual membership fee of $99)
Amazon Rewards Card
This product is not available through ValuePenguin.
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The information related to the Amazon Rewards Card has been collected by ValuePenguin and has not been reviewed or provided by the issuer of this card prior to publication. Terms apply to Chase credit card offers. See chase.com for more information. Citi is an advertising partner.

The Amazon Rewards Card from Chase has a lot of potential, especially for consumers whose spending center around gas stations, restaurants, drug stores, and (obviously) Amazon.com. When using this card for those purposes, one can expect rewards rates from 2% to 3%, which is on the high end for rewards credit cards. On top of great rewards, this card has $-00 Annual Fee, making it an easy sell. If you are only interested in Amazon.com rewards, or you don’t spend more than $750 per month, other cards such as the Sallie Mae Mastercard, may be prove to be a better value.

Review: Is the Amazon Rewards Card Worth It?

If you frequently make purchases on Amazon.com, and are looking for one credit card to suit all your needs, the Amazon Rewards Card makes a strong argument. With the card, you can get 3% cash back on all your Amazon.com purchases, and 2% cash back at gas stations, restaurants, and drugstores (1% back elsewhere). The rewards programs makes this an excellent addition to your wallet, for everyday use as well as getting some savings off your Amazon shopping sprees.

While cards like the Sallie Mae credit card can give you better rewards, they come with a series of restrictions which detract from their value. The Amazon Rewards Card is the only Amazon.com rewards card which comes with unlimited cash back rewards of this scale on Amazon purchases, on top of other categories. If you don’t mind having a card dedicated to only Amazon purchases, and are already an Amazon Prime member, you are better off with the Amazon Store card instead – it offers up to 5% cash back on purchases through the online retailer.

One of our only gripes with the Amazon Rewards Card is its lackluster welcome bonus. Users are greeted with a $30 Amazon.com gift card, upon their account being approved. While cash back credit cards are not generally known for their high bonuses, many competing cards do offer bonuses which make them significantly more attractive to new members – we’ve seen cash back cards offer bonuses as high as $100.

Bottom Line: If you’re searching for a way to save on Amazon.com-related spending, and only want a single credit card in your wallet, then the Amazon Rewards Card may be a good choice for you. We recommend all consumers spend some time seeing whether cards like the Sallie Mae credit card are a better fit for your particular needs.

Amazon Rewards Card Benefits & Features

The Amazon Rewards Card is a straightforward cash back card, which earns users a rebate on all their purchases. Cardholders get 3% back for purchases made at Amazon.com, 2% cash back at gas stations, restaurants and drugstores, and 1% back on all other purchases. What you earn with the Amazon Rewards Card are unlimited, and uncapped. Unlike rotating category cash back credit cards, you never have to worry about spending caps or quarterly bonus categories. The rewards rates on this card are set in stone, and so long as you are using it, you know exactly how much cash back you’ll be getting.

Amazon Rewards Card users receive a $30 gift card upon approval of their application. The gift card will be automatically loaded onto your Amazon.com account to be used towards any future purchase. This is one of the rare credit card bonuses which doesn’t require users to meet a minimum spending requirement or even use the card. It kicks in the moment you become a cardmember.

Amazon Rewards Card Cash Back Rewards Program: How do they work?

While the way rewards work on this card is simple, they may cover a wider array of shopping than is obvious at first glance. All purchases through the Amazon Rewards Card card earn users rewards points. These points can then be used to earn cash, gift cards, shopping on Amazon.com, and travel.

3% Cash Back at Amazon.com

All items for sale through Amazon, and affiliated third-party merchants qualify for the 3% discount. This includes things such as Amazon Fresh Orders, as well as Amazon Prime Subscriptions. The 3% cash back offer does not extend to Amazon.com subsidiaries, such as Zappos or Twitch. Furthermore, parts of Amazon which operate outside of the United States, such as Amazon.co.uk also do not qualify for the 3% offer.

2% Cash Back For Gas, Restaurants and Drugstores

The 2% categories depend upon how different merchants classify their business. Each establishment that accepts credit cards registers themselves with a credit card network (VISA, Mastercard, etc.) and puts themselves in a specific business category. Some of these categories might be very specific. For example McDonald’s might classify themselves as a ‘fast food’ business, and Chili’s Bar & Grill might opt to register as a ‘restaurant/bar’. Chase will then group all similar merchant categories into their three main ‘Gas’, ‘Restaurants’ and ‘Drugstores’ categories. 

Duane Reade and CVS, for example, will fall under the ‘drugstores’ category – even if you aren’t shopping at their pharmacy section. 7/11 stores are generally classified as a ‘gas station’, even if they don’t have a gas pump outside, and only sell snacks. Amazon Rewards Card cardholders shopping at these locations can take advantage of the 2% savings they’d be getting. For a full list of merchant category codes you may visit Visa’s website, and look up the particular business you are wondering about.

Reward Redemptions

The rate for all these redemptions will always be 100 points for $1. All redemptions, with the exception of Amazon.com purchases, require a minimum amount of points to redeem. These are subject to change, and can differ between redemptions. Generally speaking, you’ll need at least 2,000 points before you can redeem them for things such as cash back – a $20 value. When you use your rewards points to shop at Amazon.com, you can use any amount of points to help pay for some or the full purchase. A single rewards point will offset $0.01 of a purchase.

How Does The Amazon Rewards Card Compare To Other Credit Cards?

Understanding the value of the Amazon Rewards Card comes down to seeing how it matches up against similar offers. The most direct comparisons for the card can be drawn to both the Sallie Mae Mastercard and the Amazon.com Store Card – both of which offer cash back on Amazon purchases.

Amazon Rewards Card vs Sallie Mae Mastercard

Sallie Mae Mastercard
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The Sallie Mae Mastercard can get consumers up to 5% cash back on non-digital Amazon.com purchases, on up to $750 in spending each month. Therefore, this card offers superior Amazon rewards, as long as you aren’t spending more than that threshold, and if you don’t plan to pay for digital products (such as Amazon Prime, or music downloads). Outside of this, this card also beats the Amazon Rewards Card when it comes to purchases at gas stations – 5% vs 2%. However, the Sallie Mae Mastercard only offers the 5% cash back on gas (and groceries) on the first $250 spent each month. Once again, if your budget outpaces that threshold significantly, you’re better off putting those purchases on a Amazon Rewards Card.

Amazon Rewards Card vs Amazon.com Store Card

Amazon.com Store Card
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Amazon.com Store Card offers some of the best rewards for shopping at Amazon.com, if you’re an Amazon Prime member. Users get unlimited 5% cash back on all on all purchases on the website. The two downsides of the card are the fact that it can ONLY be used to buy items on Amazon, and nowhere else. Which means you will still need another credit card if you wish to buy things on credit elsewhere. Additionally, the card’s 5% rewards are only available to Amazon Prime members, which costs $99 per year. If you aren’t already a member, this may be a tough sell for the extra 2% in savings. In order for the membership fee to break outpace the Amazon Rewards Card, you must spend at $5,000 annually, or more, on Amazon.com purchases. If you don’t meet this criteria, and you don’t already have Amazon Prime for its other benefits, you should consider getting the Amazon Rewards Card instead.

Amazon Rewards Card vs Citi® Double Cash Card – 18 month BT offer

  • On Citibank's Secure Website
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One other option some consumers may consider is the Citi® Double Cash Card – 18 month BT offer. The card lets you Earn 2% on every purchase with unlimited 1% cash back when you buy, plus an additional 1% as you pay for those purchases. That rate applies to all purchases – Amazon.com, gas stations, restaurants, drug stores, and more. If you don’t want to worry about which places to shop for using a particular card, and just want decent overall rewards, the Citi® Double Cash Card – 18 month BT offer should be your top choice. If, on the other hand, you don’t mind some slight management of how you are spending, you can get higher rewards with the Amazon Rewards Card. Since both cards have no annual fee, the optimal choice would be getting both, and using the Citi® Double Cash Card – 18 month BT offer in all instance where the Chase card is only earning you 1% cash back.

Comparison Tool

Choosing a credit card is much like shopping for shoes. It’s sometimes difficult to see whether it’d be a good fit, before you try it on. To help deal with that, we have built a tool which allows you to see what rewards you can expect, given your particular spending habits. Use the tool below to get an idea of what value you can get out of the Amazon Rewards Card, alongside leading competitors.

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Assumptions based on $1,430 monthly spend
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Joe Resendiz

Joe Resendiz is a former investment banking analyst for Goldman Sachs, where he covered public sector and infrastructure financing. During his time on Wall Street, Joe worked closely with the debt capital markets team, which allowed him to gain unique insights into the credit market. Joe is currently a research analyst who covers credit cards and the payments industry. He earned a bachelor’s degree from the University of Texas at Austin, where he majored in finance.

These responses are not provided or commissioned by the bank advertiser. Responses have not been reviewed, approved or otherwise endorsed by the bank advertiser. It is not the bank advertiser's responsibility to ensure all posts and/or questions are answered.

Advertiser Disclosure: The products that appear on this site may be from companies from which ValuePenguin receives compensation. This compensation may impact how and where products appear on this site (including, for example, the order in which they appear). ValuePenguin does not include all financial institutions or all products offered available in the marketplace.

How We Calculate Rewards: ValuePenguin calculates the value of rewards by estimating the dollar value of any points, miles or bonuses earned using the card less any associated annual fees. These estimates here are ValuePenguin's alone, not those of the card issuer, and have not been reviewed, approved or otherwise endorsed by the credit card issuer.

Example of how we calculate the rewards rates: When redeemed for travel through Ultimate Rewards, Chase Sapphire Preferred points are worth $0.0125 each. The card awards 2 points on travel and dining and 1 point on everything else. Therefore, we say the card has a 2.5% rewards rate on dining and travel (2 x $0.0125) and a 1.25% rewards rate on everything else (1 x $0.0125).

Amazon Rewards Card
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