Dining rewards have been a hot perk on credit cards lately, and Uber is driving into the race with a new card that offers eye-popping rewards at restaurants, airlines and hotels, with an annual fee of$0.Uber Visa Card — issued through Barclaycard and available Nov. 2, 2017 — offers 4 points per dollar spent on dining, 3 points per dollar on hotels and airfare, 2 points per dollar on online purchases including Uber, and 1 point per dollar on all other spending. Points are worth 1 cent apiece and can be redeemed for Uber credits, cash back or gift cards.
The 4% rewards rate for dining and 3% in travel categories put the Uber Visa Card in a class by itself among no-annual-fee cards. With the Chase Sapphire Reserve®, by comparison, you can get an effective rewards rate of 4.5% on dining and travel — but you’ll also pay an annual fee of $450.
Interestingly for a co-branded credit card, however, there’s little rewards boost for using the card on Uber itself. You get the same 2 points per dollar on Uber as for other online purchases.
Besides the rewards and flexible redemptions, the Uber Visa Card offers mobile phone insurance, an annual subscription credit for online services such as Amazon Prime, Netflix or Spotify, and access to exclusive events through the Uber app.
New cardholders also can earn a sign-up bonus: Earn $100 after spending $500 on purchases in the first 90 days. The card doesn’t charge foreign transaction fees, a must-have feature for frequent travelers.
The perks are attractive, but there are some restrictions:
- To redeem for Uber credits, you need a minimum of 500 points (for $5).
- Cardholders can redeem no more than $500 per day in Uber credits.
- Mobile phone insurance is limited to $600 for damage or theft, and you must pay your mobile phone bill with the Uber Visa.
- To receive the $50 online subscription credit each year, you must charge at least $5,000 on your card annually.
To take advantage of all the benefits, cardholders should register their card in the Uber app. Then they can keep track of points and redeem credits for Uber rides and UberEats. You also need the app to participate in Visa Local Offers, which can help you earn the maximum rewards with the Uber Visa Card card or any eligible Visa card. Visa Local Offers add a percentage more to your Uber credits with certain purchases. There’s no limit on the number of credits you can earn in the program, but there is a $100 limit on Uber credits per purchase.
The Platinum Card® from American Express already gives cardholders up to $200 in Uber rides annually. Uber says that benefit will continue for those cardholders.
For people on the go who also dine out often, the Uber Visa Card will help them pile up credits quickly. The lack of an annual fee and the 1-cent redemption rate — regardless of how you redeem your points — make this truly a rewarding card.