Canceling Amazon Prime? Your Prime Visa Still Works – And It May Be Worth Keeping
To save on the annual membership cost, many people consider canceling Amazon Prime. We explain how rewards change after canceling Prime and whether the card is still worth keeping.
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Many people cancel Amazon Prime to save on the annual membership cost. But that raises an important question: should you also close the Prime Visa card?
If you’re considering canceling Prime, you might be wondering what happens to the credit card tied to it.
The good news is that canceling Prime does not close the card. The Prime Visa continues working normally and still earns solid rewards – even without a Prime membership. Because the card has no annual fee and no foreign transaction fees, many people choose to keep it open.
Quick takeaway
If you cancel Amazon Prime:
- Your Prime Visa stays open
- Amazon rewards drop from 5% to 3%
- The card still has no annual fee
- The card still has no foreign transaction fees
For many people, that makes it worth keeping even without Prime.
Quick Answer: Should You Close the Prime Visa?
No. You do not need to close the Prime Visa if you cancel Amazon Prime.
The card remains open and continues earning rewards, but Amazon purchases drop from 5% to 3% cashback. In practice, your Prime Visa begins to behaves like the Amazon Visa, which earns 3% at Amazon and Whole Foods without requiring Prime.
Because the card has no annual fee and no foreign transaction fees, many people choose to keep it even without Prime.
How Much Does Amazon Prime Cost?
The current price of Amazon Prime is approximately:
- $139 per year
- $14.99 per month
Prime membership has gradually increased in price over the years.
Amazon Prime membership over the years
Because the membership cost has increased significantly, many consumers periodically reconsider whether the benefits are still worth it.
Why Do People Keep Amazon Prime?
Prime is more than just free delivery. It is a bundle of several features that many households use regularly.
Free and Fast Shipping
One of the most popular benefits is free two-day shipping on millions of items. In many areas, Amazon also offers next-day or even same-day delivery.
For people who order frequently, avoiding shipping fees and receiving items quickly can make Prime very convenient.
Higher Rewards With the Prime Visa
Cardholders with the Prime Visa earn:
- 5% cashback at Amazon and Whole Foods
- 2% at restaurants, gas stations, and local transit
- 1% on other purchases
Without Prime, Amazon purchases earn 3% instead of 5%.
Prime Video
Prime membership also includes Prime Video, which offers movies, TV shows, and original series.
For some households, this streaming service replaces or complements other subscriptions.
Exclusive Deals
Prime members also receive:
- Prime Day sales
- Exclusive lightning deals
- Early access to some promotions
Heavy Amazon shoppers often feel these discounts help offset the membership cost.
Additional Prime Benefits
Prime also includes:
- Amazon Music Prime
- Prime Reading
- Prime savings at Amazon Fresh and Whole Foods
- Free photo storage
While each benefit alone might not justify the cost, the bundle can be appealing to frequent Amazon users.
Free Shipping Is Still Available Without Prime
Although Prime provides faster delivery, it is not the only way to receive free shipping.
Customers without Prime can still receive free standard shipping on many orders over $35, though delivery usually takes longer.
In some cases, non-Prime orders may still arrive quickly. If the product ships from a nearby Amazon fulfillment center, delivery can sometimes take one to two days even without Prime.
What Happens to the Prime Visa If You Cancel Prime?
If you cancel Amazon Prime, your Prime Visa remains active. The biggest change is that Amazon and Whole Foods purchases drop from 5% to 3% cashback.
Your existing rewards stay in your account, and if you later re-subscribe to Prime, the card typically returns to 5% Amazon rewards automatically.
Reasons You Might Want to Keep the Card
No Annual Fee
The card itself does not charge an annual fee. The only cost associated with the card is the optional Prime membership.
If you cancel Prime, you can simply keep the card with reduced rewards and no yearly cost.
No Foreign Transaction Fees
The card has no foreign transaction fees, meaning purchases abroad or from international websites avoid the typical 3% surcharge charged by many credit cards.
This makes the card useful even beyond Amazon purchases.
It Helps Your Credit History
Closing a credit card can sometimes hurt your credit score because it may:
- Reduce your total available credit
- Increase your credit utilization ratio
- Shorten your average account age over time
Keeping the card open can help maintain a stronger credit profile.
It Still Earns Decent Rewards
Even without Prime, the card still earns:
- 3% at Amazon and Whole Foods
- 2% in several everyday categories
That can still be competitive compared to many no-annual-fee cashback cards.
You Can Re-activate Prime Later
If you decide to re-subscribe to Prime in the future, the card automatically returns to the 5% rewards tier.
Keeping the account open means you won’t need to reapply.
How Much Amazon Spending Makes Prime Worth It?
Prime members earn 5% cashback, while non-Prime users earn 3%. The difference is 2%.
Since Prime costs $139 per year, we can estimate the break-even spending level, $139 ÷ 0.02 = $6,950.
You would need to spend about $6,950 per year on Amazon for the extra rewards to fully cover the membership cost.
For comparison, surveys suggest many households spend slightly above $1,000 per year on Amazon.
This means rewards alone often do not justify the Prime membership cost for many consumers.
How to Still Earn 5% on Amazon Without Prime
If you cancel Amazon Prime, purchases on the Prime Visa drop from 5% to 3% cashback.
However, some credit cards occasionally offer 5% cashback on Amazon purchases through rotating bonus categories.
Discover it®
Discover it® offers 5% cashback in rotating categories each quarter (on up to $1,500 in spending per quarter after activation).
Amazon has appeared in Discover’s bonus categories in several past years, particularly during holiday shopping seasons.
Freedom Flex®
Freedom Flex® also offers 5% cashback in rotating quarterly categories (up to $1,500 in spending each quarter after activation).
In some years, Amazon or online shopping has appeared as a bonus category.
This means you may still be able to earn 5% on Amazon purchases during certain quarters, even without Prime.
The Bottom Line
Canceling Amazon Prime does not mean you must close your Prime Visa.
The card continues earning rewards and still offers useful features such as no annual fee and no foreign transaction fees. However, Amazon rewards drop from 5% to 3%, so the card may be slightly less valuable if you shop there frequently.
For many people, the simplest option is to keep the card open and use it occasionally. Since the card has no annual fee, there is little downside to keeping it.
FAQ
Does the Amazon Prime Visa automatically close if I cancel Prime?
- No. The card stays open and simply earns lower rewards.
Will my rewards rate change immediately?
- Yes. Purchases at Amazon and Whole Foods will drop from 5% to 3%.
Can I get the 5% rewards again if I rejoin Prime?
- Yes. Once you reactivate Prime, the higher rewards typically return automatically.
Does closing the card hurt your credit score?
- It can, depending on your credit profile, because it reduces available credit and may affect credit utilization.