Category: Cash Back

Amazon Prime Card offering new Whole Foods card art, limited-time bonus

On Jan. 20, Chase announced a new card design option for the Amazon Prime Rewards Visa Signature card featuring Whole Foods Market art and added a limited-time sign-up bonus offer for those who prefer to shop at Whole Foods in-store.

Amazon has become a leader in grocery shopping during the pandemic, with consumers avoiding grocery stores due to health safety concerns – not to mention the convenience of shopping from a web browser. Amazon Prime members can enjoy speedy free delivery, as well as get access to online shopping at Whole Foods Market and special member deals when shopping in-store.

They can also count on extra savings if they carry the Amazon Prime Rewards card from Chase – or if they’re looking to apply in the next few weeks.

Here’s what you need to know.

Amazon Prime Rewards Visa Signature card

Amazon Prime Card Whole Foods

Our rating: 3.8 out of 5
Score required: Good to excellent
Type of card: Cash back
Spending categories: Amazon, Whole Foods, restaurants, gas stations, drug stores

  • 5% back on Amazon.com and Whole Foods purchases
  • 2% back on restaurant, gas station and drug store purchases
  • 1% back on other purchases
  • $70 Amazon.com gift card upon approval or $100 statement credit after spending $100 at Whole Foods in first 2 months
  • No annual fee

Our take: While the Amazon Prime Rewards card offers excellent cash back on Amazon and Whole Foods purchases, it might not be the best choice for customers who don’t currently have a Prime membership and aren’t looking to subscribe.

A new Whole Foods card design and limited-time offer

Chase introduced a new card design option for new Amazon Prime Rewards cardholders, featuring Whole Foods Market art. New cardmembers with an eligible Prime membership can choose the new design when they apply for the card. If you’re an existing cardholder and would like to switch to the new design option, you can call in to request a new card after Jan. 22.

If you frequently shop at Whole Foods in-store, the new limited-time introductory offer can also be exciting news for you. Through March 3, new Amazon Prime Rewards Visa cardholders can earn a $100 statement credit after spending $100 in Whole Foods Market stores in the first two months from account opening. Alternatively, they can still choose the standard $70 Amazon gift card offer as a sign-up bonus.

Considering the standard bonus is lower, the new temporary offer might be a better deal. On the other hand, if you avoid shopping in-store or normally use Amazon Fresh for buying groceries, the gift card might make more sense for you.

Should I start shopping at Whole Foods if I have an Amazon credit card?

If you already shop at Whole Foods, the 5% back with the Amazon Prime Rewards Signature Visa and 10% off specially marked items is a good deal. The discounts, though, don’t make Whole Foods cheaper than other grocery stores.

In fact, according to a study from 2019, Whole Foods remains the most expensive grocery store with its prices at 34% above Walmart, which was reported to have the lowest prices overall. If your goal is to save on groceries, Whole Foods is evidently not the best option – even if you carry the Amazon Prime card.

Other cards to consider

The Amazon Prime Card isn’t the only option you should consider if you often shop on Amazon or at Whole Foods.

See related: Which is the best card to use on Amazon.com purchases?

For instance, with the Chase Amazon.com Rewards Visa card, you can get a $50 Amazon gift card upon approval and earn 3% on Amazon and Whole Foods purchases, 2% percent at restaurants, gas stations and drugstores and 1% on all else. If you don’t have a Prime membership and aren’t looking to subscribe, this is a good option, since the card doesn’t require a cardholder to be a member.

If you do have a membership and shop on Amazon a lot, the Amazon Prime card is a better deal. With 5% for purchases made at Whole Foods and on Amazon, 2% at restaurants, gas stations and drugstores and 1% on all else, this card is hard to beat for Amazon and Whole Foods lovers.

If you’re looking for a card to buy groceries, consider the Blue Cash Preferred® Card from American Express, which could save you more than the Amazon Prime Visa at Whole Foods. Why? Blue Cash Preferred cardholders earn 6% cash back at U.S. supermarkets (up to $6,000 in purchases per year, then 1%).

See related: Best credit cards for grocery shopping

Bottom line

You can now stack your rewards at Whole Foods, earning cash back and the limited-time bonus with the Amazon Prime Card, and you can get extra savings from the loyalty program. Whether it makes sense to shop at Whole Foods, even with rewards cards and the loyalty program, is up to you.

Source: creditcards.com

Best cards for food delivery and meal kit subscriptions

Credit cards for foodies are the latest trend, with more and more rewards programs and additional card benefits catering to both dining in and eating out. Restaurant and grocery bonus categories are becoming commonplace – letting cardholders rack up a few extra points or cash back on those purchases.

But what about those who prefer to order delivery? If you like to take advantage of popular food delivery services like DoorDash or Uber Eats or simplify cooking with a meal kit subscription, there are plenty of credit card rewards and benefits you can leverage to save a little money.

Finding the best card for your favorite services

Finding the best card for your favorite food delivery or meal kit service depends on a variety of factors, including the card’s yearly credits, special perks or rewards rate. For example, many dining cards offer bonuses that are tailored to a specific delivery service, as a monthly Uber credit.

See Related: Food delivery perks on luxury travel cards

For meal kit services, matching rewards is a little more complicated. You could opt for a rewarding grocery card, as many meal kit brands are now partnered with major supermarkets – so you can buy them in the store.

merchant category code that qualifies for a point or cash back bonus. You can test it by making a small charge to your card and seeing what rewards you earn.

Online shopping rewards, on the other hand, are much more flexible. They apply to both web and app purchases, so whether your order from your phone or computer, you can rack up bonus points or cash back.

See Related: Make the most of an online shopping bonus category

Best cards by delivery service or meal kit subscription

With all this in mind, here are some of our favorite cards for some of the most popular food delivery and meal kit subscription services.

Delivery service Card Rewards rate Why we like it
DoorDash Chase Sapphire Reserve
  • 10 points per dollar on Lyft purchases (through March 2022)
  • 3 points per dollar on travel and restaurants (excluding purchases covered by $300 travel credit)
  • 1 point per dollar on general purchases
  • Generous rate on dining purchases
  • Receive a yearly statement credit for DoorDash purchases ($60 in 2020 and $60 in 2021)
  • Get at least one free year of DashPass when you enroll with your card (activate by Dec. 31, 2021)
Uber Eats The Platinum Card® from American Express
  • 10 points per dollar on eligible purchases at U.S. gas stations and U.S. supermarkets, on up to $15,000 in combined purchases, during the first 6 months of card membership
  • 5 points per dollar on flights booked directly with airlines or with American Express Travel (starting January 1, 2021, earn 5X points on up to $500,000 on these purchases per calendar year)
  • 5 points per dollar on eligible hotels booked with amextravel.com (starting January 1, 2021, earn 5X points on up to $500,000 on these purchases per calendar year)
  • 1 point per dollar on general purchases
  • Terms apply
  • Get up to $200 in Uber credits per year ($15 per month, plus an extra $20 in December), which can be applied to Uber Eats
  • Automatic Uber VIP membership (where available) without ride requirements
Instacart Capital One Savor Cash Rewards Credit Card
  • 8% cash back on Vivid Seats tickets (through Jan. 2022)
  • 4% cash back on dining and entertainment
  • 2% cash back at grocery stores
  • 1% cash back on all other purchases
  • Top-tier cash back on restaurant delivery, including most delivery services
  • Grocery bonus category includes eligible grocery delivery services, including Instacart
  • As a Mastercard, offers complimentary a 2-month Instacart Express membership if enrolled before Mar. 31, 2021
Grubhub/Seamless/Boxed/Instacart American Express® Gold Card
  • 4 points per dollar at restaurants worldwide
  • 4 points per dollar at U.S. supermarkets (on up to $25,000 in purchases per year, then 1 point)
  • 3 points per dollar on flights booked directly with airlines or amextravel.com
  • 1 point per dollar on other purchases
  • Terms apply
  • Enroll to receive up to $10 in statement credits per month (up to $120 per year) to use at participating restaurants, including Grubhub, Seamless and Boxed
  • Excellent rewards on grocery delivery services, such as Instacart
HelloFresh Blue Cash Preferred® Card from American Express
  • 6% cash back at U.S. supermarkets (up to $6,000 in purchases per year, then 1%)
  • 6% cash back on select U.S. streaming subscriptions
  • 3% cash back at U.S. gas stations and on transit purchases
  • 1% cash back on general purchases
  • Terms apply
  • Generous rate on U.S. supermarket purchases (HelloFresh meal kits are sold in supermarkets such as H-E-B and Giant Food) and eligible grocery delivery services, such as Instacart
  • Unlimited 3% cash back on delivery purchases from ride-share services, like Uber and Lyft
Home Chef Blue Cash Everyday® Card from American Express
  • 3% cash back at U.S. supermarkets (up to $6,000 per year in purchases, then 1%)
  • 2% cash back at U.S. gas stations and select U.S. department stores
  • 1% cash back general purchases
  • Terms apply
  • Generous rate on U.S. supermarket purchases (Home Chef meal kits are sold in select Kroger locations)
Other delivery services Bank of America® Cash Rewards credit card
  • 3% cash back on a category of choice (gas, online shopping, dining, travel, drugstores or home improvements and furnishings)
  • 2% cash back at grocery stores and wholesale clubs
  • $2,500 combined limit on 2% and 3% categories each quarter
  • 1% cash back on other purchases
  • Generous rate on online shopping purchases (if you select it as your 3% category) and good rate at grocery stores
  • Can swap choice 3% category monthly to account for different delivery services. For instance, the dining category rewards Grubhub purchases and the travel category rewards ride share purchases from services like Uber

If you don’t have a delivery service you prefer – or if you like to switch back and forth based on restaurant availability – a card with rewards on online shopping is your best bet.

Bottom line

Ordering food can be expensive, but using the right rewards card can help you alleviate some of that cost by racking up points or cash back. With some cards, you might even get a few extras that cover your next couple of meals.

Source: creditcards.com

What credit card should I get?

One of the questions I’m asked the most is, “Which credit card should I get?”

There’s not a one-size-fits-all answer, but here’s how to narrow it down:

Which credit card to choose if you carry a balance 

If you’re in credit card debt, then you need to prioritize your interest rate over rewards. The average credit card charges 16.05%. It doesn’t make sense to pay interest just to earn 1%, 2% or 3% in cash back or travel points.

If you have credit card debt, forget about rewards for now. You can avoid interest for up to 18 months with the right balance transfer card. And some card issuers (especially credit unions) charge ongoing (non-promotional) rates as low as the 6%-9% range. Don’t chase rewards if you’re revolving a balance.

If you have credit card debt, I recommend these cards:

  • Citi Simplicity® Card*: 18-month 0% intro balance transfer offer; transfers must be completed in the first four months; 3% balance transfer fee ($5 minimum); 0% introductory purchase APR for 18 months; regular variable APR of 14.74%-24.74%
  • Wells Fargo Cash Wise Visa® card: 15-month 0% intro balance transfer offer; intro balance transfer fee of 3% or $5 (whichever is greater); transfers must be made within 120 days to qualify for intro offer; 0% intro purchase APR for 15 months; regular variable APR of 14.49%-24.99%; regular balance transfer fee of 5% or $5 (whichever is greater)
  • BankAmericard® credit card: 12-billing-cycle 0% intro APR balance transfer offer; must complete the transfer within 60 days of opening the account; 3% or $10 transfer fee, whichever is greater; introductory 0% purchase APR for 12 billing cycles; regular variable APR of 12.99-22.99% on purchases and balance transfers

See related: Balance transfer cards with no transfer fee

Which card to pick if you don’t have any credit card debt 

Now we’re on to the fun stuff! The key questions at this juncture focus on how much effort you want to put in, how you spend your money and what you want to get out of your rewards.

Some people treat credit card rewards like a game. It’s fun for them, and they spend time looking for the best deals and juggling multiple cards. Yet about three-quarters of credit card holders prefer simplicity and would rather use the same card or two as widely as possible, we found in an August 2019 survey.

You won’t get the best rewards with that approach, but you can still do pretty well. Here are my favorite flat-rate cash back cards:

  • Alliant Visa Signature Card: 2.5% cash back on every purchase with a $99 annual fee; in your first year (waived your first year)
  • Citi® Double Cash Card: Essentially 2% cash back on everything (technically 1% when you buy and 1% when you pay it off); no annual fee

If you make more than $20,000 in credit card charges in a typical year, the Alliant Credit Union Visa Signature is a better bet despite the annual fee.

Which card to pick if you’re willing to put in a little work to earn better rewards 

Dividing your spending among multiple cards is the best way to reap higher returns. At this stage, you need to consider how you spend your money. Different cards incentivize different types of spending (e.g., travel, restaurants, groceries, entertainment).

You also need to think about your desired redemption. Cash back has the broadest appeal (after all, who couldn’t use a little more cash?), although travel rewards are usually the most valuable. Some 49% of U.S. adults have at least one cash back card, 20% have an airline or hotel rewards card and 19% have a general travel rewards card, our research shows.

Chase Sapphire Reserve, the American Express® Gold Card, the Citi Premier® Card and the Capital One Venture Rewards Credit Card).

Each of these issuers has more than a dozen airline and hotel transfer partners, plus you can book an even wider variety of flights and hotels directly through the card companies. These programs provide tons of flexibility, and in terms of cents per point, they generally offer higher returns than cash back cards.

Parting advice

As you can see, picking the right credit card for you is an individual decision. I’ll leave you with two more thoughts:

You’re doing well as long as you’re avoiding credit card debt and redeeming rewards for something that’s valuable to you.

Not everyone wants to fly to the Maldives in first-class and stay in an overwater bungalow. Even if it yields fewer cents per point, a free flight to grandma’s house or cash back on everyday purchases could make more sense for your particular situation.

You should absolutely consider sign-up bonuses when evaluating credit cards, but don’t lose sight of the fact that your credit card strategy should be a long-term pursuit. Especially if you’re new to credit, focus on ongoing value rather than card churning.

* Information about Citi Simplicity has been collected independently by CreditCards.com. The issuers did not provide the details, nor are they responsible for their accuracy.

Source: creditcards.com

What Is Cash Back?

What Is Cash Back?

Cash back is a rewards benefit that many credit cards offer to cardholders. By taking advantage of it, you’ll receive back a prespecified percentage of certain purchases you make. Many credit card companies will provide higher cash back rates on certain types of purchases, such as airfare, gas, food and more. Cash back is just one way that credit cards offer rewards, as mileage and points are some alternatives.

Before you spend too much money with your credit cards, make sure you have a financial plan in place. Speak with a financial advisor today.

What Is Cash Back?

The most commonly recognized style of cash back is what you have likely seen advertised as cash back credit cards. This specifically refers to earning a certain percentage of your credit card purchases back as cash rewards. However, cash back rates vary widely, as do the categories that they apply to.

You usually won’t see credit card cash back rates higher than 5%, while 1% is the typically minimum you will earn. Cash back categorization is significantly more complex though, with a merchant category code (MCC) system being the main organizing force.

MCCs run the entire cash back industry, as they ultimately decide how each purchase you make is classified. These designations coincide with cash back rates set by the issuer of your card. For example, you could use your card for a $50 dinner at a steakhouse, which has a “restaurant” code. If your card offers a 2% cash back rate on all spending at restaurants, you’d earn $1 cash back.

Familiar alternatives to cash back include point- and mile-based programs, though many cardholders are partial to cash back. Cash back affords cardholders an independence that is ideal, since you can redeem it for nearly anything.

Popular Cash Back Credit Cards

What Is Cash Back?

Discover, American Express, Mastercard and Visa all have cash back rewards credit cards available for prospective cardholders. Each abide by their own set of regulations, though card issuers decide on cash back rates, promotions and bonuses. Chase, Wells Fargo, Citi and Capital One represent some of the most active card issuers on the market today.

Below are a few examples of what you can expect to earn when looking for a cash back credit card:

Cash Back Credit Cards Card Name Cash Back Rates Cash Back Bonus Costco Anywhere Visa Card by Citi 4% cash back on eligible gas up to $7,000 per year, 3% cash back on eligible travel and restaurants, 2% cash back in-store and online with Costco and 1% cash back elsewhere None Bank of America® Cash Rewards credit card 3% cash back in a category of your choosing, 2% cash back at grocery stores and wholesale clubs and 1% cash back on all other purchases (up to a quarterly cap of $2,500 in combined grocery/wholesale club/choice category purchases) $200 bonus cash back for spending at least $1,000 over your first 90 days Capital One® Quicksilver® Cash Rewards Credit Card Unlimited 1.5% cash back everywhere $150 cash back bonus when you spend $500 during your first three months Citi Double Cash Card 1% cash back on your purchases and another 1% cash back when you pay your bill None Capital One® Savor® Cash Rewards Credit Card Unlimited 4% cash back on dining and entertainment, 2% cash back on groceries and 1% cash back elsewhere $300 cash back bonus for $3,000 spent over your first three months TD Cash Visa® Credit Card 3% cash back on dining, 2% cash back at supermarkets and 1% cash back on everything else Earn $150 cash back when spending $500 within the first 90 days (See Terms) USAA Preferred Cash Rewards Visa Signature Unlimited 1.5% cash back on everything None Blue Cash Everyday Card from American Express 3% cash back on up to $6,000/year at U.S. supermarkets (then 1%), 2% cash back at U.S. gas stations and select U.S. department stores and 1% cash back on other purchases $150 bonus cash back for spending $1,000 over your first six months Getting Cash Back at Retailers

What Is Cash Back?

Picture this: you’re buying some groceries on a Sunday morning, but know you’ll need $40 cash to fill up your car with some gas later. You could swipe your debit card at the supermarket and then head over to the ATM. Or you could ask for cash back right from the cashier, eliminating the extra errand.

The above situation represents the alternative definition of cash back. It’s ultimately the use of a cash register as if you were swiping your debit card at the ATM. When you request cash back from a cashier, your bank account will be charged the amount you asked for. This enables the funds to be pulled from your account so the cash can be placed in your hand.

Although this generally only applies to debit cards, there are a few exceptions for credit cards. Discover® allows cardholders to ask for cash back at more than 50 large retail stores without a transaction fee.

Bottom Line

There are many benefits to utilizing credit card rewards programs. But spending money that technically isn’t yours will always involve some level of risk. If you’re in good financial shape, though, cash back and other types of credit card rewards can help you take more vacations, save money on purchases and more.

Credit Card Tips

  • Managing your credit cards and any debt you accumulate using them is a major part of your long-term financial outlook. Consider working with a financial advisor to make sure you’re managing your money with your goals for the future in mind. SmartAsset’s free matching tool can connect you with up to three advisors in your area. Get started now.
  • If you’re someone who wants freedom when spending credit card rewards, you may prefer cash back to a points- or mileage-based reward system. However, keep in mind that cash back rates are sometimes less than those in point-centric programs.

Editorial Note: This content is not provided by the credit card issuer. Any opinions, analyses, reviews or recommendations expressed in this article are those of the author’s alone, and have not been reviewed, approved or otherwise endorsed by the issuer.

Advertiser Disclosure: The card offers that appear on this site are from companies from which SmartAsset.com receives compensation. This compensation may impact how and where products appear on this site (including, for example, the order in which they appear). SmartAsset.com does not include all card companies or all card offers available in the marketplace.

Photo credit: ©iStock.com/SIphotography, ©iStock.com/MJ_Prototype, Â©iStock.com/Juanmonino

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Source: smartasset.com

Cash back perks to look for in 2021

If you’re like many people, your spending habits changed in 2020. You probably traded travel and in-person dining for online shopping and takeout. You may have even added a streaming service or two to your list of subscriptions.

Credit card issuers have started offering new perks and rewards to address these changes. And though these perks try to solve for pandemic woes, there’s something to be said for the convenience they offer, even when normalcy returns. There are also a few long-standing features, like online shopping portals, that belong in the credit card conversation now more than ever.

The best cash back card for you depends on your spending habits. So when your budget or lifestyle changes, you should make sure your credit cards are still bringing you consistent value. Here are a few cash back credit card features you need to look out for in 2021.

All information about Capital One Savor Cash Rewards Credit Card, Amazon Prime Rewards Visa Signature, Wells Fargo Propel and U.S. Bank Cash+ Visa Signature has been collected independently by CreditCards.com and has not been reviewed by the issuer.

1. Discounted grocery and takeout delivery services

If you’re planning to do a fair portion of your dining at home this year, you should look for a card that makes that easier and cheaper. With the right card, you can earn rewards on restaurant and grocery store purchases, while also saving on the services that deliver them, like Uber Eats, Doordash and Instacart.

Here are a few of our favorite cash back cards for food delivery:

American Express® Gold Card – You’ll get up to 12 months of complimentary Uber Eats Pass membership, as long as you’re enrolled by Dec. 31, 2021. This service usually costs $9.99 per month, offering an unlimited $0 delivery fee for restaurant orders and 5 percent off restaurant orders over $15, along with a $0 delivery fee on select supermarket groceries over $30. In addition, you’ll get up to $120 in annual dining credits for eligible purchases with Grubhub, Seamless, Boxed and more.

Chase Sapphire Reserve® – If you enroll by 12/31/2021, you and your authorized user(s) will receive at least 12 months of complimentary DashPass (usually $9.99 per month), which means free delivery on qualifying DoorDash orders. You’ll also get up to $60 in DoorDash credits in 2021.

Capital One Savor Cash Rewards Credit Card – Because it’s in the Mastercard network of credit cards, you’ll get two months of Instacart Express, including $0 delivery fees on orders over $35. You can get this benefit with any US-issued Mastercard card, but the Capital One Savor is an especially good option because it also offers 4% cash back on dining and 2% cash back on grocery store purchases.

2. Online shopping portals and rewards

Though cash back cards are known for their simple redemption process, you can often get even more value by using their shopping portals. Not every card and issuer has this option, but it’s certainly worth looking into if you now prefer to do your shopping digitally.

For example, the Shop Through Chase portal features deals from over 200 retailers, offering boosted cash back rates as well as discounts on purchases at stores like Nike, Banana Republic, Sephora and Under Armour. Other shopping portals include the Wells Fargo Earn More Mall and the Citi Bonus Cash Center.

Another option is to use a credit card that offers boosted cash back on online shopping purchases. While the cash back rates may not be as high as you would find in a shopping portal, you’ll earn consistent cash back on all of your online shopping purchases, regardless of the merchant.

Our favorite cash back card for online shopping is the Bank of America® Cash Rewards credit card, which earns 3% cash back on a category of choice (gas, online shopping, dining, travel, drug stores or home improvements and furnishings), as well as 2% cash back at grocery stores and wholesale clubs. Note, however, that those rates apply only to the first $2,500 in combined grocery store/wholesale club/choice category per quarter. After that, it’s just 1%.

Another contender is the Amazon Prime Rewards Visa Signature. You have to have a Prime membership to get it, but the rewards offer serious value for Amazon lovers. Cardholders earn 5% cash back on Amazon.com and Whole Foods purchases.

3. Streaming service rewards

As streaming services continue to multiply, it seems like you need two or three subscriptions just to stay up to date on your favorite shows. Earning cash back for your subscriptions can make this pleasure a bit less guilty.

The best card for earning cash back on streaming services is the Blue Cash Preferred® Card from American Express, which offers 6% cash back on select U.S. streaming subscriptions, including Disney+, HBO and HBO Max, Hulu, Netflix, Apple TV, Prime Video and more.

Another great card that offers rewards for streaming subscriptions is the Wells Fargo Propel American Express® card, which offers 3 points per dollar for select streaming service subscriptions. While this isn’t strictly a cash back card, you can redeem your points for cash back at the same value. Plus, there’s no annual fee.

4. Rewards on utilities

If you’re working from home or spending more time indoors, your utility bills have probably increased this year. It might instinctively feel wrong to pay bills with a credit card, but it can actually save you money. With the right card, you can earn cash back on your energy, electricity, gas and water bills. Just make sure your utility providers don’t charge a convenience fee for using a credit card.

The best cash back card to use for home utilities is the U.S. Bank Cash+™ Visa Signature Card. This card allows you to pick two categories from a list of 12 to earn 5% cash back in (on up to $2,000 in combined purchases per quarter). On that list of twelve is home utilities. If you were to spend $150 on eligible utilities each month, that 5% cash back would put an extra $90 in your pocket annually.

Bottom line

The start of a new year is a perfect time to assess your budget and credit card strategy. If you’re earning a measly 1% cash back or nothing at all on a significant portion of your budget, consider applying for a credit card that will help you make the most of those expenses. Check out our full analysis of the best cash back credit cards and apply securely when you’re ready.

Read more:

  • How cash back credit cards work
  • Best credit cards for grocery shopping
  • Best credit cards for restaurants
  • Best flat-rate cash back credit cards

Source: creditcards.com