U.S. Bank Shopper Cash Rewards Review: Up to 6% Back at Top Retailers

Sky-high rewards at major retailers

A 6% cash-back rate is attention-getting in its own right, but it gets more interesting when you consider some of the merchants where you can earn that rate.

The inclusion of Walmart and Target, for example, positions this card as a major rival to the venerable Blue Cash Preferred® Card from American Express — long a favorite of heavy grocery spenders because it earns 6% cash back at U.S. supermarkets on up to $6,000 spent per year. (Terms apply; see rates and fees.) But that card specifically excludes superstores like Walmart and Target from its 6% rate. So if that's where you do your grocery shopping, the U.S. Bank Shopper Cash Rewards® Visa Signature® Card is the superior pick.

The U.S. Bank card's 6% rate is subject to a cap: $1,500 in combined quarterly spending across two categories (1.5% back on all other spending). If you were to max out that 6% rate on, say, groceries at Walmart and furniture at Ikea, you'd earn $90 for the quarter — nearly enough to cover the card's annual fee after the first year.

» MORE: U.S. Bank Shopper Cash Rewards vs. AmEx Blue Cash Preferred

Useful 3% 'everyday' categories

Each quarter, in addition to choosing two merchants for the 6% category, you’ll pick one everyday category in which you can earn 3% for the quarter on up to $1,500 spent (1.5% after that). Those three possible categories are: wholesale clubs like Sam’s and Costco; gas and EV charging stations; and bills. U.S. Bank defines “bills” as cell phone, home utilities and TV/internet/streaming services (as of Oct 2022). Rare is the card that offers utilities as a bonus rewards category, so consider making the U.S. Bank Shopper Cash Rewards® Visa Signature® Card your designated card for the power and water bill, for example. (Note: gas purchased at discount stores, supercenters and wholesale clubs doesn't qualify.)

» MORE: Best credit cards for everyday spending

It's customizable

The fact that the U.S. Bank Shopper Cash Rewards® Visa Signature® Card lets you change your two 6% retailers and one 3% everyday category every quarter gives you more control over where you earn rewards. Got a college-bound student leaving home in the fall? You could designate Bed, Bath and Beyond (for the dorm essentials) and Apple (for a new laptop) as 6% merchants for the quarter, plus gas stations as the everyday 3% category (for the cross-country drive to and from the college). And when the new quarter rolls around, you get to make three new selections that might better fit your household’s ever-changing needs. 

Annual fee and spending caps

After the first year, a significant annual fee kicks in for the U.S. Bank Shopper Cash Rewards® Visa Signature® Card. Many other cards with cash-back rates as high as 5% don't come with annual fees. For example, the Chase Freedom Flex® and Discover it® Cash Back feature rotating 5% bonus categories, and while those are also subject to $1,500 quarterly spending caps and require activation every three months, historically they've included specific merchants like Walmart and Target. There's even a different card within the U.S. Bank portfolio — the U.S. Bank Cash+® Visa Signature® Card — which allows for custom 5% bonus categories for no annual fee.

» MORE: U.S. Bank Shopper Cash Rewards vs. U.S. Bank Cash+: A clash of customizable cards

The annual fee and spending caps on the U.S. Bank Shopper Cash Rewards® Visa Signature® Card also limit its appeal as a 1-to-1 substitute for many retailers' store cards. If you're looking for a credit card to use only at Best Buy, for instance, you could get a Best Buy-branded card that earns 5% back at that store with no annual fee, and you'd be better off. That's because with the U.S. Bank Shopper Cash Rewards® Visa Signature® Card, even if you set "Best Buy" as a 6% category, the card's $95 annual fee after the first year means you're starting out behind. To beat what you'd earn with the no-fee store card, you'd have to spend $9,500 a year at Best Buy — but since only $1,500 in spending per quarter (or $6,000 per year) will qualify for that 6% rate, it'd be almost impossible to ever get ahead.

» MORE: U.S. Bank Shopper Cash Rewards vs. store cards: When 5% beats 6%

It's high maintenance

The flexibility of the U.S. Bank Shopper Cash Rewards® Visa Signature® Card may feel less like freedom and more like a burden for some people. After all, there are 276 possible combinations of the 24 retailers in the 6% cash-back category, enough to overload anyone. 

You also have to choose your 6% and 3% categories every quarter. You won't earn those rewards rates until you do so (they aren't applied retroactively). If you forget, you’re stuck earning just 1.5%. You can set up email and text alerts through U.S. Bank to remind you when it’s time to activate new categories, but the onus is still on you.

» SEE: How to make the most of the U.S. Bank Shopper Cash Rewards Card

And those spending caps might create another headache. The card's cash-back rate drops to 1.5% after you hit the $1,500 quarterly spending limit in the 6% and 3% categories, so if you've got a big purchase planned that you want to earn 6% on, you may need to track your spending to make sure you still have "room" for it under your quarterly limit. 

If the complicated rewards structure of the U.S. Bank Shopper Cash Rewards® Visa Signature® Card makes your head spin, check out a card like the Wells Fargo Active Cash® Card. It earns 2% cash back on every purchase, with a $0 annual fee, no rewards cap and no categories to activate. The Citi Custom Cash® Card is another option. You’ll get 5% back on up to $500 in your top spending category (from a list of several) each month, with little to no work on your part: The card automatically detects your highest-spend area each month. (After hitting the $500 cap, you’ll earn an unlimited 1% on other purchases.)