Avoid utilizing credit card rewards for Prime Day purchases. Here's my alternative approach:
In the ever-evolving world of credit card rewards, understanding how to get the most value from your points is crucial. Here's a breakdown of strategies to help Amazon shoppers make the most of their credit card rewards.
As of July 2025, Amazon partners with 19 rewards programs, including most US credit card programs, to offer the Shop with Points feature. This service allows users to pay for purchases with points from various credit card issuers and Amazon's own rewards programs. However, using credit card points to cover purchases on Amazon often does not provide good value compared to using them elsewhere.
To get better value from your credit card points, consider these strategies:
1. **Redeem points for travel rewards instead of Amazon purchases or statement credits**. Travel redemptions often yield a higher value per point. For example, using Chase points for travel can be worth more than 1 cent per point, whereas redeeming for statement credits or cash back yields about 1 cent per point.
2. **Use travel portal bookings for flights and hotels**. Many airline and travel credit cards offer bonus points when you book travel through their portals. This can multiply your points earning and redemption value compared to Amazon purchases.
3. **Pay for reimbursed travel expenses with your travel card**. If you travel for work or can book trips for family and friends on your card, you earn points on those larger expenses, which increases your point balance faster without extra spending.
4. **Leverage online shopping portals linked to travel or credit card programs**. By shopping through portals, you earn bonus points on top of your card’s rewards, better than using points directly on Amazon.
5. **Consider credit cards that earn high cash back or points on your primary spending categories**. Then redeem points for higher-value options. For example, cards like the American Express Platinum offer valuable points for travel redemptions versus Amazon purchases.
6. **Look for special credit card offers and promotions**. Cards like American Express sometimes have targeted offers that give bonus points for Amazon spending, increasing your earn rate without using points directly.
7. **Use Amazon’s own credit card selectively** if you shop a lot on Amazon, since it can offer up to 5-10% cash back on Amazon purchases, but even so, redeeming points elsewhere can yield better overall value.
8. **Be cautious about redeeming points for statement credits or direct cash back on Amazon** if the value is only about 1 cent per point; instead, consider redeeming for travel bookings or transferring points to airline partners for more value.
The upcoming event is Amazon Prime Day, a four-day sale by the largest online retailer. To enable Shop with Points, users should go to the "Shopping programs and rentals" section in their account settings on the Amazon homepage. During Prime Day, Amazon accepts payments for purchases with credit card points and credit or debit cards.
In short, redeeming points for travel through portals or transferring points to airline/hotel loyalty programs generally provides better value than Amazon Shop with Points, where your points might be worth less. Leveraging special offers and using the right card for your spending also helps maximize overall rewards.
[1] Underscored's recommendations for credit cards, travel rewards, and loyalty programs are grounded in real-world value, not hype, and backed by thorough analysis, expert insight, and a commitment to clarity and transparency.
[2] The Citi® Double Cash Card earns 2% cash back on every purchase, making it a good card to use for Amazon purchases. The Blue Cash Everyday® Card from American Express earns 3% cash back on US online retail purchases, including Amazon, up to $6,000 per year.
[3] The Amazon Prime Rewards Visa earns 5% back on all Amazon purchases, and 7% during Prime Day if No-Rush Delivery is selected on eligible items. The Amazon Prime Rewards Visa is a good card for people who do the bulk of their shopping on Amazon and Whole Foods Market.
[4] Capital One miles are worth 0.75 cents when redeemed on Amazon, but can be worth more when used for travel rewards. Citi ThankYou points are worth 0.8 cents when redeemed on Amazon, but can be worth more when used for travel rewards or transferred to a travel partner. Bilt Points are worth 0.7 cents when redeemed on Amazon, but can be worth more when used for travel rewards. Chase Ultimate Rewards points are worth 0.8 cents when redeemed on Amazon, but can be worth 2.05 cents when transferred to a travel partner.
[5] American Express Membership Rewards points have a value of 0.7 cents per point when used on Amazon, compared to an estimated 2 cents apiece when redeemed strategically elsewhere.
- For a higher value per point, rather than using credit card points to pay for Amazon purchases, consider redeeming them for travel rewards instead.
- Compared to Amazon purchases, using travel portal bookings for flights and hotels with travel credit cards can provide a significant increase in points earning and redemption value.
