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While I use Amazon to buy just about everything, I’ve never been terribly interested in their co-branded credit card. Specifically, up until now the Amazon Prime Rewards Visa Signature Card has offered the following rewards structure:
- 5% back at amazon.com
- 2% back at restaurants, gas stations, and drugstores
- 1% back on all other purchases
The card has no annual fee, though requires a Prime membership, which costs $99 per year. Those without a Prime membership are eligible for the Amazon Rewards Visa Signature Card, which has the same rewards structure, except it offers 3% back at amazon.com rather than 5% back.
Starting today, cardmembers also receive additional rewards on Whole Foods purchases — those with the Prime version of the card get 5% back on Whole Foods purchases, while those with the basic version of the card get 3% back on Whole Foods purchases.
This new benefit is exclusive to Whole Foods, and doesn’t include other grocery stores. It’s obviously motivated by Amazon having purchased Whole Foods last year in a nearly $14 billion deal, so Amazon is hoping that this perk will cause more people to shop at Whole Foods.
This is certainly a fairly compelling value for anyone who is a frequent Whole Foods shopper, though I’d argue it’s not the best value that’s available for Whole Foods purchases. Specifically, The Amex EveryDay® Preferred Credit Card from American Express offers 3x Membership Rewards points on the first $6,000 spent annually at US supermarkets. On top of that you receive a 50% points bonus when you make at least 30 transactions per billing cycle, meaning you’re earning up to 4.5x Membership Rewards points per dollar spent. I value those points at ~1.7 cents each, so to me that’s like a return of ~7.7% on grocery store spend.
If you prefer a no annual fee card, The Amex EveryDay® Credit Card from American Express offers 2x Membership Rewards points on the first $6,000 spent annually at US supermarkets, and you receive a 20% points bonus when you make at least 20 transactions per billing cycle, meaning you’re earning up to 2.4x Membership Rewards points per dollar spent. That’s the equivalent of a ~4.1% return.
The Amazon credit card now offering 3-5% back on Whole Foods spend is a very nice perk. It’s also brilliant from their perspective, given that they own the grocery giant. Personally I don’t spend a lot at grocery stores, but even if I did, I doubt this would be enough to get me to pick up this card, since I prefer a card like the Amex EveryDay Preferred. However, I’m sure lots of people will get value out of this.
Do you plan on taking advantage of the 5% Amazon Credit Card bonus for Whole Foods spend?
(Tip of the hat to @IadisGr8)