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In today’s busy world, online shopping is not just a convenience, it is a way of life. One of my favorite places to shop online is Amazon.com. Amazon has its own no annual fee credit cards that offer up to 5% cash back, which is a great deal. However, I’m here to share why you shouldn’t use the Amazon credit card options to shop at Amazon.com.

amazon credit card

Amazon Rewards Visa Signature Card

The information related to Amazon Rewards Visa Signature credit card has been collected by Johnny Jet and has not been reviewed or provided by the issuer of this card.

The Amazon Rewards Visa Signature Card is offered by Chase. Cardholders receive 3% cash back at Amazon.com and Whole Foods. Additionally, they earn 2% cash back at restaurants, gas stations, and drugstores. All other purchases earn 1% cash back with this Amazon credit card.

Currently, applicants will receive a $50 Amazon gift card upon approval.

For purchases at Amazon.com and Whole Foods, this no annual fee credit card is a good deal. However, if you have multiple credit cards in your wallet, I’m sure that you have one that offers more than 2% cash back on dining, gas, and pharmacy purchases.

Amazon Prime Rewards Visa Signature Card

The information related to Amazon Prime Rewards Visa Signature credit card has been collected by Johnny Jet and has not been reviewed or provided by the issuer of this card.

If you are an Amazon Prime member, you will get approved for the Amazon Prime Rewards Visa Signature Card instead. Amazon Prime offers tremendous value with free two-day shipping on select purchases and includes a huge selection of streaming movies, Kindle books, and music.

There are two major differences between the two credit cards from Amazon. The Amazon Prime Rewards card provides a large signup bonus ($70 vs. $50) and 5% cash back at Amazon.com and Whole Foods. Everything else is the same, including no annual fee.

You may earn 3% instead of 5%

The primary cardholder earns 5% at Amazon.com when shopping with their linked Amazon Prime account. But Amazon purchases by authorized users will only earn 3% if they don’t have their own Amazon Prime account. And if the primary cardholder shops at Amazon.com on someone else’s account, the rewards will also be reduced to 3%.

If you cancel or choose not to renew your Amazon Prime membership, the Amazon Prime Rewards Visa Signature Card will max out at 3% until you sign up for Amazon Prime again.

Additional benefits for both Amazon credit card options

Both Amazon credit cards offer additional benefits that many cardholders will appreciate. Emergency features that often come with the best travel credit cards like lost luggage reimbursement, baggage delay, and travel accident insurance give you peace of mind. Additionally, there are no foreign transaction fees when making a purchase in another country.

When making hotel reservations, the Amazon Visa Signature credit cards participate in the Visa Signature Luxury Hotel Collection. There are over 900 hotels to choose from that offer the best available rate, automatic room upgrades, complimentary in-room Wi-Fi, and many other perks.

Purchases are also protected. The time period for U.S. manufacturer’s warranties of three years or less is extended by one year. Purchase protection covers new purchases for 120 days against damage or theft. You will be reimbursed up to $500 per claim and $50,000 per account.

Tip: If you’re looking for a travel credit card that earns rewards for everyday purchases and also comes with plenty of purchase protection, check out the Chase Sapphire Preferred and the Chase Sapphire Reserve.

Redemption options for Amazon rewards

The default option for the Amazon rewards earned is to redeem for future purchases at Amazon.

Cardholders may also choose to redeem their Amazon rewards for cash. It can be in the form of a credit card statement credit or a transfer to your checking or savings account. The minimum withdrawal for this option is $20.

Other redemption options include travel, gift cards, and other products and services that Amazon may make available from time to time.

Which credit card should you use instead?

The Amazon credit cards sound pretty good, right? There simply aren’t many credit cards that can compete with 5% cash back for online shopping. Especially when the Amazon credit card has no annual fee.

But here’s a better option – any personal credit card from Citibank.

The advantages of Citi Price Rewind

All personal credit cards from Citibank offer something called Price Rewind. With this program, simply register your purchases with Citibank and their online shopping tool will search for lower prices. Citibank searches for millions of products at hundreds of online merchants to find you a better price.

If a lower price is found within 60 days of your original purchase date, Citibank will refund you the difference at no charge.

Citibank cardholders can save up to $200 per purchase and a total of $1,000 per year with Citi Price Rewind. The Citi Price Rewind website shows 687,477 payments for a total of $17.5 million in 2018 with an average payment of $25.52.

How to make the savings automatic

I love saving money, but who has time to input all of their online purchases into the Citi Price Rewind website?

Two popular apps do the entry for you – Earny and Paribus. They scan your email accounts and when they find an online purchase, they’ll submit the purchase on your behalf. There is no charge to sign up, but they will take a portion of your savings as payment for their services.

I’ve been using Earny for several years and regularly receive savings that far exceed the 5% cash back from the Amazon Prime Rewards Visa Signature Card.

For example, I bought advent calendars for my kids in November. Earny found lower prices and I ended up saving over 40% on both! Even better was the 57% refund I received on the solar power lamppost light that I ordered.

With Citi Price Rewind and Earny, I saved almost $100 just on those three purchases. To equal those savings, I would need to spend $2,000 at Amazon with the Amazon Prime Rewards Visa Signature Card. I spent less than $200.Amazon Earny cash back savings

And don’t forget that you will also earn rewards from whatever credit card you used to make the purchases from Amazon.

What credit card do you use to shop at Amazon?

When shopping online at Amazon, the co-branded Amazon credit card options are a good deal. They have no annual fee and can earn up to 5% cash back at Amazon.com and Whole Foods. I believe that the better option than the Amazon credit card options is to use a Citibank personal credit card to save money using their free Price Rewind feature. You can choose to input your purchases manually or use a service like Earny or Paribus to do it for you in exchange for a percentage of the savings.

Which credit card do you use when shopping at Amazon.com? Have you used the Citi Price Rewind feature to save money on your purchases? What has been your best savings so far?

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Lee Huffman

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Editorial Note: The editorial content on this page is not provided by any bank, credit card issuer, airlines or hotel chain, and has not been reviewed, approved or otherwise endorsed by any of these entities.

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