The Sam’s Club MasterCard vs. Other Cash Back Cards

Advertiser Disclosure

Everyone loves a cash back card, which is why so many banks and stores offer them to customers. It used to be just the big banks that gave cash back rewards based on spending. Now it is common for stores to get in on this market and get more customer loyalty in the quest for cash being returned to them.

Some stores have even begun to offer cards that come in MasterCard or Visa versions that they can be used for other purchases, like gas, dining, groceries, travel, and other big categories. The Sam’s Club MasterCard is one of these cards. They are offering a nice tiered cash back program to cardholders.

If you are a frequent shopper at Sam’s Club warehouse stores, this might be a good choice for you. Let’s take a look at the benefits that they are offering to customers.

New Sam’s Club MasterCard

Highlighted Cash Back Features

The Sam’s Club MasterCard offers simple yet substantial cash back rewards for their customers. First, you will earn 5% cash back for all spending at gas stations, up to $6,000 per year. After you spend the first $6,000, you will continue to earn 1% cash back on gas station purchases. Here’s one catch—you will earn 5% cash back at Sam’s Club gas stations and other major gas retailers, but there are no cash back rewards for spending at other warehouse store gas stations.

You can earn 3% cash back on all dining purchases and any travel purchases that you make, with no spending cap. Earn 1% cash back on all other purchases using the Sam’s Club MasterCard.

With the Sam’s Club MasterCard, you can earn up to $5,000 cash back per year. The cash back rewards are paid to you in the form of a check, delivered to you once per year. The only place that you can cash the check is at a Sam’s Club store (but you don’t have to spend the entire reward there).

Great Security Options

With so many credit card breaches in the news lately, people are paying more attention to getting credit cards with higher level security features. The Sam’s Club MasterCard is chip-enabled, which gives you a better layer of security. Plus, they offer quick and simple identity theft solutions through their customer service center.

Sam’s Club MasterCard is the first major retail card to offer this level of technology. Since many of the credit card breaches have come from major retailers, this is something that may make customers more comfortable and secure when using the credit card. Also, extended warranty coverage is available, so you can be more confident in protecting your purchases.

No Annual Fee

The Sam’s Club MasterCard does not have an annual fee, but you do have to be a Sam’s Club member to apply. Membership to Sam’s Club is $45 per year.

More Benefits for Sam’s Plus Members

For those cardholders who are also members of the Sam’s Plus program, you can receive several additional benefits. These include early morning admission to the store, discounts on pharmacy and optical services, and exclusive offers within the store. Sam’s Plus members will earn an additional $10 every time they spend $500 in the store on qualifying purchases and earn up to $500 cash back annually. These rewards can be combined with the other cash back rewards to boost your annual return, or used separately throughout the year.

The Nitty Gritty

Again, the Sam’s Club MasterCard has no annual fee, but you must be a member of Sam’s Club to apply ($45 yearly membership fee). The APR is 14.99% or 22.90%, depending on your credit history. If you make a single purchase of $50 or more on the first day you use the card, you will get a $20 statement credit within the next two billing cycles. Foreign transaction fees are 3%.

Any Downsides?

Although the Sam’s Club MasterCard offers some great cash back options, you will only receive that cash back reward once per year. If you are the kind of person who likes to get one lump sum, this might be great for you, but the redemption options are not very flexible otherwise. Remember, you can only cash this check at Sam’s Club. If you regularly shop at the store, this may be convenient.

You must be a Sam’s Club member to cash the check, so don’t consider closing this account if you have any cash back rewards due to you. There is a small sign up bonus of $20 if you spend $50 on your first purchase. Other cards offer greater cash back rewards for sign up bonuses.

Other Options

While the Sam’s Club MasterCard can compete on some levels, especially with Sam’s Club devotees, there are other great cards out there that offer significant rewards for those who spend a lot of money on gas, dining, and travel. Other cards offer much more convenient redemption options when it comes to getting the cash back.

Barclaycard Arrival Plus

The Barclaycard Arrival Plus is a great option for those travelers who like to earn big cash back rewards on every purchase, and have flexible redemption options available to them. With the Barclaycard Arrival Plus, you will earn 2 points for every dollar spent, on all purchases. You will earn 40,000 points as a sign-up bonus when you spend $3,000 within the first three months.

Redeem your miles for travel credits or statement credits, at any time. Earn an additional 10% bonus miles when you redeem your miles for travel rewards. There is an $89 annual fee, but this is waived for the first year. Barclaycard Arrival Plus offers great security, with EMV-chip technology.

There is also a 0% introductory APR on all purchases made during the first 12 months. Frequent travelers may find this option very appealing because of the high earning power and flexible redemption opportunities.

Discover it

For those shoppers who like to earn great cash back rewards and have very flexible redemption options, the Discover it has some terrific perks. Earn 1% cash back on all purchases, in all categories. Earn 5% cash back on rotating bonus categories, which change quarterly and are generally the most popular shopping options. Currently, Discover it is offering 5% cash back on online shopping and department store purchases for this quarter.

There is no annual fee for the Discover it card, so you have nothing to lose. Redeem your cash back rewards at any time, either earning a check, using the cash at the online shopping portal, getting gift cards, or getting statement credits.

Final Thoughts

For those who really love shopping at Sam’s Club and spend most of their money at gas stations, the Sam’s Club MasterCard is a good option. But, if you want a little more flexibility in terms of cash back earnings and redemption options, you might want to consider either the Barclaycard Arrival Plus or the Discover it as alternatives.

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