Amazon Credit Card Annual Fees: What You Actually Pay

Amazon's credit cards have no annual fee, regardless of which version you choose

The Amazon Prime Rewards Visa Signature Card and the Amazon Rewards Visa Card both charge zero dollars per year to hold them. You will not see an annual fee line on your statement, and Amazon does not charge you to keep the card open even if you never use it. This applies whether you are a Prime member or not — the card itself costs nothing to own.

That said, the card does cost money in other ways. You pay interest if you carry a balance, and you may face late fees if you miss a payment. But the annual fee specifically — the charge just for having the card — is not one of them.

Key Takeaways

• Both Amazon Rewards Visa cards charge no annual fee, so you will not pay a yearly cost to hold either one.
• You still pay interest on any balance you do not pay off in full each month, which is where the real cost comes in.
• Late payments trigger a fee separate from interest, so setting up autopay or calendar reminders helps you avoid that charge.
• The Prime version offers higher cash back rewards but requires an active Prime membership to get the best rates.

How the two Amazon cards differ in rewards, not fees

Amazon offers two versions of its rewards card, and the difference is in what you earn back, not what you pay upfront. The Amazon Prime Rewards Visa Signature Card gives you 5% cash back on Amazon purchases and Whole Foods spending if you are a Prime member, plus 2% at restaurants, gas stations, and travel. The regular Amazon Rewards Visa Card gives you 3% cash back on Amazon and Whole Foods, and 1% on everything else.

Neither card charges an annual fee. If you have a Prime membership and use Amazon regularly, the Prime version usually makes sense because the higher rewards offset the cost of Prime itself over time. If you do not have Prime or rarely shop on Amazon, the regular card still costs nothing to own and still earns you cash back.

Where you actually pay money with this card

The annual fee is free, but three other charges can show up on your bill. The first is interest, which kicks in if you do not pay your full statement balance by the due date. Amazon's card is issued by Chase, and the interest rate varies based on your credit score — it could be anywhere from around 16% to 24% annually, though the exact rate depends on your creditworthiness and current market conditions.

The second charge is a late fee, which happens if you miss a payment. This is separate from interest and can range from $25 to $35 depending on how late you are and your payment history. The third is a cash advance fee if you use the card to withdraw cash from an ATM — typically 3% of the amount withdrawn, with a minimum charge.

For most people, the interest charge is the real cost. If you pay your full balance every month, you avoid all three of these charges and the card truly costs you nothing.

Why no annual fee matters less than you might think

The fact that Amazon's card has no annual fee sounds like a big deal, but it is not the main thing that determines whether the card is worth using. Many cards with annual fees offer rewards high enough that they pay for themselves. Conversely, a card with no annual fee can still cost you money if you carry a balance or miss payments.

What matters more is whether you will actually use the card and pay it off. If you shop on Amazon regularly and pay your statement in full each month, the rewards add up faster than the zero annual fee saves you. If you carry a balance, the interest charge will dwarf any annual fee you might have paid on a different card.

How to avoid the charges that do exist

Since the annual fee is not a concern, focus on the charges that actually happen. Set up autopay for at least the minimum payment so you never miss a due date and trigger a late fee. Better yet, set it to pay your full balance automatically each month — this eliminates both the late fee and the interest charge.

If you cannot pay the full balance, pay as much as you can to reduce the interest you owe. Interest compounds daily on credit cards, so even small extra payments shrink what you owe faster than you might expect. Avoid using the card for cash advances unless it is truly an emergency, since the 3% fee plus interest makes it an expensive way to get cash.

Comparing Amazon's card to other no-fee options

Amazon is not alone in offering a card with no annual fee. Many issuers — Chase, Capital One, Discover, and others — have cards that charge nothing to hold them. The real comparison is whether Amazon's rewards rate justifies using it over another no-fee card.

If you spend heavily on Amazon and Whole Foods, the Prime version's 5% cash back is hard to beat for those categories. If you want a card that rewards you equally across all purchases, a flat-rate card like the Capital One SavorOne or the Discover it Cash Back might make more sense. The annual fee is the same (zero) across all of them, so the choice comes down to where you spend money and how much you value the rewards.

Frequently Asked Questions

Do I have to be a Prime member to get the Amazon credit card?

No. You can get either card without Prime membership. However, if you choose the Prime Rewards version and do not have Prime, you will earn only 3% cash back on Amazon purchases instead of 5%, which defeats the purpose of that card. The regular Amazon Rewards card works fine without Prime.

Will the annual fee change if I keep the card for years?

Amazon has not charged an annual fee since these cards launched, and there is no indication that will change. However, card issuers can change terms, so it is worth checking your statement once a year to confirm the fee remains zero.

What happens if I close the card — do I owe anything?

No. Closing the card does not trigger any fee. You only owe money if you have an unpaid balance on the card at the time you close it, in which case you still need to pay that balance off.

Is the interest rate the same for everyone?

No. Chase sets your interest rate based on your credit score, payment history, and other factors. Two people approved for the same card can have different rates. You can ask Chase what your rate will be before you accept the card.