Comparing Canadian and U.S. Amazon Credit Cards

It has been fun for me to compare similar Canadian and U.S. based credit cards. So far, it has proven that Canada does have some competitive cards. I cannot expect them to be at par with each other. Today, we continue our comparison series with the Amazon co-branded cards.

Keep in mind that the U.S. has two versions of the card to consider. Below are the highlights of each respective cards:

Canada Chase Amazon.ca Rewards Visa Card

• No annual fee
• Earn $20 Amazon.ca sign up bonus gift certificate
• Earn 2% cash back on Amazon.ca purchases
• Earn 1% cash back on all other purchases
• No foreign transaction fees

U.S. Chase Amazon Rewards Visa Signature Card

• No annual fee
• Earn $50 Amazon.com sign up bonus gift card
• Earn 3% cash back on Amazon.com purchases
• Earn 2% cash back on purchases made at restaurants, gas stations, and drugstores
• Earn 1% cash back on all other purchases
• No foreign transaction fees

U.S. Chase Amazon Prime Rewards Visa Signature Card

• No annual fee
• Earn $70 Amazon.com sign up bonus gift card
• Earn 5% cash back on Amazon.com purchases with an eligible Prime Membership
• Earn 2% cash back on purchases made at restaurants, gas stations, and drugstores
• Earn 1% cash back on all other purchases
• No foreign transaction fees

No annual fee / No foreign transaction fees

Both cards are tied on these two factors. Very impressive for the Canadian version to do so, so I will give them the edge!

Winner: Canada

Sign Up Bonus

Assuming all things are equal, the highest sign up bonus wins it all!

Winner: U.S. Prime

Earning Ratios

Even though it is clear that the U.S. version has the superior earning ratio, because it offers a higher percentage and covers way more categories… actually, no even though. A little disappointing from the Canadian version to not offer at least 1 more categories with at least a 2% cash back. I think that one of the issues is that the Canadian version is still a very low profile card.

For now, I am just glad that they even offer it at all!

Winner: U.S. Prime

Amazon Prime Factor

For this factor, I will just compare between the two U.S. based credit cards to determine which one makes more sense to have. If you signed up for an Amazon Prime account, you do get the first 30 days free, but it is $10.99 USD per month thereafter. In one year, that is $131.88, plus applicable taxes.

If you already have an Amazon Prime account, because you are able to take advantage of all its associated perks, then it is a no-brainer to have the Amazon Prime co-branded credit card. The most valuable perk is the free shipping.

If you do not have an Amazon Prime account, I would do more careful calculations on whether it is worth it to pay for Prime, just to get the better credit card. The only added benefit that you are really getting is an additional 2% cash back on Amazon.com purchases. You would be essentially paying a $131.88 annual fee for the credit card. To make up for the costs, you would need to spend an additional $6,594 on Amazon.com (2% x $6,594) to make up the $131.88 in costs.

Winner: It depends on your situation

Conclusion

I am just glad to see that Canada does offer a co-branded Amazon card. The main selling feature of the card is the no foreign transaction fee, which is a rare commodity in Canada.

As for the U.S. version, even though it may seem very competitive with the Canadian version, it is probably below average when you compare to other U.S. based, no annual fee, cash back cards. Its main competitive edge is the 5% cash back on Amazon.com. So I would only really recommend having this card if you are already an Amazon Prime member. Otherwise, there are plenty of other better choices out there.