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Today Barclaycard announced a new Uber Visa credit card that will be available to applicants beginning on November 2, 2017. This new card is a little fascinating to me as it is a no annual fee card that delivers some pretty solid returns, but perhaps not in the categories that you might expect.
First things first, the Uber Visa will be available on 11/2/17, with a new customer bonus of $100 after you spend $500 on purchases in the first 90 days.
Rewards categories on the Uber Visa
There are four different tiered categories of rewards for your everyday spending on the Uber Visa that go as high as 4% back.
- 4% Back on Dining – Dining includes restaurants, take-out, and even UberEATS
- 3% Back on Hotel, Airfare, and Vacation Home Rentals
- 2% Back on Online Purchases – Online purchases include Uber, online shopping, video and streaming services
- 1% Back Elsewhere
Getting 4% back on dining is really, really good for a no annual fee credit card, and the other bonus categories are also pretty strong. Since most of us probably shop online, getting 2% back on online shopping purchases also ain’t too shabby.
Annual $50 streaming credit available
Some additional built-in perks for the new Uber Visa are pretty cool and unique. These benefits include a $50 credit for online subscription streaming services such as Netflix when you spend $5,000 or more on the card per year and up to $600 for mobile phone damage or theft when you pay the mobile phone bill with your card.
Beyond that, Barclaycard says the card will get you an invite to exclusive events, won’t charge foreign transaction fees, and will allow you to redeem rewards on the go with a tap.
I think the Uber Visa has a very strong offering for a no annual fee card, especially in the categories of restaurants and online shopping. Moreover, I think the streaming services and mobile phone benefits are unique and well aligned with what Uber users probably value and spend money on. You have to imagine that those perks will probably encourage folks to keep the card on an ongoing basis once recurring bills are set for those monthly payments.
Surprising facts about the Uber Visa
All that said, I do find it a little strange that an Uber credit card doesn’t reward more on Uber spending than other categories. I also find it a little strange that point redemptions on Uber aren’t any better than redeeming for straight-up cash back. The points this card earns can be redeemed at a one point for one cent ratio, which means that 10,000 points can get you $100 in Uber rides or $100 cash back.
Unless I am missing something, I’m not 100% clear on why anyone would redeem the points for Uber rides when you can select cash back. I would have expected that the redemption rate would be better for Uber rides than for cash back, but that doesn’t make the card a bad offering at all, it just makes it a surprising one.
I’ll update once the card becomes available next week, but I’d love to hear your preliminary thoughts.
Editorial Note: The opinions expressed here are mine and not provided, reviewed, by any bank, card issuer, or other company unless otherwise stated.