Note: This post assumes you have and use the Chase Prime Visa credit card for purchases at Amazon.com.

The Chase Prime Visa earns 3% cash back on all purchases at Amazon.com. If you have an eligible Prime membership, you then get 5% cash back on all purchases at Amazon.com.

As of 11/19/2023, the Amazon Prime membership fee is $14.99 a month or $139.00 a year.

You need to spend $6,950.00 a year for that extra 2% cash back to pay for the membership fee.

• If you spend $6,950.00 a year at 3% cash back that earns you $208.50.

• If you spend $6,950.00 a year at 5% cash back that earns you $347.50.

• $347.50 - $208.50 = $139.00 (the membership fee)

If you prefer the Amazon Prime membership fee at a monthly rate, then it breaks down as follows.

You need to spend $749.50 a month for that extra 2% cash back to pay for the membership fee.

• If you spend $749.50 a year at 3% cash back that earns you $22.48.

• If you spend $749.50 a year at 5% cash back that earns you $37.47.

• $37.47 - $22.48 = $14.99 (the membership fee)

The monthly term requires a yearly spend of $8,994.00 to pay for Amazon Prime. The yearly term can potentially save you up to $2,044.00 depending on your annual spend at Amazon. Once you exceed the minimum spend, all transactions will net you an extra 2% cash back.

Sorry if this is a dumb question or if I am missing something here. I was just recently charged the annual Amazon Prime membership fee, it came out to $150.47. According to Amazon, the membership is $139 a year. Why did I get charged more?