Advertiser Disclosure

New Card: 5% Back at Amazon, Rewards Everywhere Else

Cash Back Credit Cards, Credit Cards, Rewards Credit Cards
With so many websites offering free financial tools, it can be hard to know whom to trust. At NerdWallet, we thoroughly research financial products and companies, and adhere to strict standards of editorial integrity to find you the best choices. We even share how we make money so you can rely on our expert advice and recommendations with clarity and confidence.
New Card: 5% Back at Amazon, Plus Rewards Elsewhere

Online superstore Amazon is rolling out a new credit card that combines the best features of the Amazon Prime Store Card and the existing Amazon Credit Card. Available only to Amazon Prime members, the new Amazon Prime Rewards Visa Signature Card offers:

  • 5% back on Amazon purchases.
  • 2% back at restaurants, gas stations and drugstores.
  • 1% back everywhere else.

Rewards never expire and are redeemable at Amazon. Your rewards balance appears on the checkout screen when you make a purchase, and you can apply rewards to a purchase in any amount, with no minimum redemption. The new card has no annual fee, but it requires membership in Amazon Prime, which costs $99 a year and provides such perks as free two-day shipping and unlimited access to streaming media. The card has no foreign transaction fees.

Amazon Prime customers who already have the existing Amazon Credit Card, also known as the “Amazon Rewards Visa Signature Card,” will be upgraded to the new Prime product automatically. Their existing accounts will start earning the new benefits immediately, and their new card should arrive soon, Amazon said. The new card will be made of metal rather than plastic, latching on to the craze that surrounded the 2016 release of the metal Chase Sapphire Reserve℠.

How does the new card stack up against other Amazon cards? Take a look:

 Amazon Prime Rewards Visa SignatureAmazon Credit Card Amazon Prime Store Card
Where can you use it?Anywhere that accepts VisaAnywhere that accepts VisaOnly at Amazon
Rewards on Amazon purchases 5%3% 5%
Rewards at restaurants, drugstores, gas stations2% 2% N/A
Rewards on all other purchases1%1%N/A
Annual fee for card $0 (but requires $99 Prime membership)$0$0 (but requires $99 Prime membership)

» MORE: Amazon Prime Store Card: Is it right for you?

“The upgraded Amazon Prime card took the best of both worlds and is really a fantastic product for regular Amazon shoppers,” NerdWallet credit cards expert Sean McQuay says.

For Prime members who already have the existing Amazon Credit Card, upgrading to the new card will mean higher rewards at no additional cost. For cardholders who might have been on the fence about ponying up the $99 for Prime membership, the new rewards rate for Amazon purchases — a 67% increase — might be just the push they’re looking for. And for holders of the Amazon Prime Store Card, the fact that they can get the same 5% back at Amazon plus additional rewards elsewhere makes the new card an enticing upgrade.

Looking for a credit card? Tell us what you would most want your new card to do.

The biggest drawback, as with any store credit card, is that the rewards can be used at only one place. But in this case, that one place is Amazon, which carries so many different kinds of products that you won’t lack for opportunities to redeem rewards, whether on Cartier watches, Angel Soft toilet paper or anything in between.

“Think of the card as a 5% discount on every Amazon purchase, no coupons needed,” McQuay says.

Information related to the Amazon Credit Card, Chase Sapphire Reserve℠ and the Amazon Prime Rewards Visa Signature Card has been collected by NerdWallet and has not been reviewed or provided by the issuer of this card.

Paul Soucy is an editor at NerdWallet, a personal finance website. Email: Twitter: @paulsoucy.