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 Amazon Prime Rewards Visa Signature Card*. This card offers an exceptional rewards rate of 5 percent cash back on Amazon.com and Whole Foods Market purchases with an Amazon Prime membership, which can add up fast. Plus, it doesn’t even charge an annual fee, and you can earn a free 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.

Since this card is part of the Visa Signature credit card family, you’ll also get extra benefits including extended warranties, zero fraud liability, roadside dispatch, lost or stolen card reporting, travel and emergency assistance services, emergency card replacement and auto rental collision damage waiver, to name a few.

When is the Amazon Prime Rewards Visa Signature Card worth it?

While everyone has their own preferences when it comes to which rewards cards are best, the Amazon Prime Rewards Visa Signature Card 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 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, you would rack up $300 in rewards with this card each year on those purchases alone.

An Amazon Prime membership is required for this card, but that may not be a big consideration for you if you’re a member already. Also, note that you’ll earn 2 percent back at restaurants, gas stations and drugstores and 1 percent back on all other purchases.

You shop at Whole Foods Market

Remember that the 5 percent back rate applies to Whole Foods Marketplace purchases as well, and there are no limits to the 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 eight and 10 spent $1,292.60 per month on food on a moderate plan as of October 2022. 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 one year with this card.

You want to avoid unnecessary credit card fees

The Amazon Prime Rewards Visa Signature Card doesn’t charge an annual fee, nor does it charge foreign transaction fees on purchases made abroad. 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.

When is the Amazon Prime Rewards Visa Signature Card not worth it?

While the instances above show when the Amazon Prime Rewards Visa Signature Card can be worth it, there are times when another card might leave you better off.

You carry a balance from time to time

One such time is if you carry a balance occasionally, and especially on a regular basis. Where some rewards credit cards offer 0 percent APR on purchases for a limited time, the Amazon Prime Rewards Visa Signature Card does not.

In fact, this card charges a variable APR of 14.24 percent to 22.24. You’ll 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 travel perks

Also, note that Amazon Prime Rewards Visa Signature Card benefits don’t include travel-specific perks, outside of a few travel insurance benefits. 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 Amazon Prime Rewards Visa Signature Card?

If you spend a lot of money with Amazon.com and Whole Foods, then you should absolutely consider the Amazon Prime Rewards Visa Signature Card. After all, there aren’t any other rewards cards on the market today that 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, dining out or entertainment.

Either way, this card deserves a spot in your wallet if you’re an Amazon Prime member already you spend money regularly with the online retailer.

The bottom line

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

With that in mind, reading over our Amazon Prime Rewards Visa Signature Card review can help you decide if this card is right for your wallet. And for more options as an Amazon loyalist, consider our list of the best credit cards for shopping on Amazon in 2023.

*All information about the Amazon Prime Rewards Visa Signature Card has been collected independently by Bankrate and has not been reviewed or approved by the issuer.