Sam’s Club Mastercard Review: Great for Gas, but Not for In-Store Shopping

The Sam's Club® Mastercard® is a worthy option for Sam's Club store members who guzzle gas and don't mind jumping through some hoops.

The card, issued by Synchrony Bank, features one of the highest rewards rates available on fuel purchases, not to mention impressive incentives on travel and dining out, all for an annual fee of $0.

But the card is decidedly less generous when it comes to in-store or online Sam's Club purchases — a bit surprising since being a Sam's Club member (and paying the annual membership fee) is a prerequisite for getting the card. Oddly, other cash-back credit cards can deliver more value for your actual Sam's Club shopping.

» MORE: NerdWallet's best gas credit cards

Sam's Club® Mastercard®: Basics

Card type: Store.

Annual fee: $0, but you must be a Sam's Club member. Membership fees start at $45 a year.

Rewards: You can redeem rewards for cash, apply them to your statement balance or use them toward Sam's Club purchases. Total rewards on this card are capped at $5,000 per calendar year. You earn:

• 5% cash back at eligible gas stations worldwide, including stations at Sam’s Club (on up to $6,000 spent per year, then 1%).

• 3% cash back on dining and travel.

• 1% cash back on all other purchases.

Sign-up bonus: Get $45 as a statement credit when you open a new account and spend $45 online in the same day. Offer Ends June 15, 2020.

APR: The ongoing APR is 16.40% - 24.40%, Variable.

Foreign transaction fees: None.

Additional perks: Mastercard or World Mastercard benefits, depending on which version you're approved for.

Why you might want the Sam's Club® Mastercard®

One of the highest rewards rates on gas

With a 5% cash-back rate on up to $6,000 in gas expenses per year, you could earn $300 annually in that category alone, plus 1% on any gas purchases beyond that cap. And those earnings would be in addition to Sam’s Club member-exclusive prices offered on fuel at select locations. That's a sizable chunk of savings, especially for rideshare drivers, weekend warriors and others who hit the road often.

Appetizing rewards at restaurants

You'll earn a high 3% cash-back rate on dining, which includes things like restaurants, drinking places and caterers. In 2018, the average American household spent $3,459 per year on food outside of the home, according to the U.S. Bureau of Labor Statistics' Consumer Expenditure Survey. If you spent that much at restaurants with the Sam's Club® Mastercard®, you could more than $103 annually.

A jet-setting travel companion

The Sam's Club® Mastercard® charges no foreign transaction fees — somewhat rare for a cash-back card — and it earns a high 3% cash-back rate on travel in categories such as airlines, hotels, rental cars, cruise lines, travel agencies, travel websites and more. As part of the Mastercard network, the card is also widely accepted abroad.

Why you might want a different credit card

mediocre rewards for Sam’s Club shopping

Sam's Club gas stations aside, any shopping you do at Sam's (either inside the store or online) will net you only 1% cash back. The Bank of America® Cash Rewards credit card can double that rate while also still delivering a relatively high rate back on fuel purchases. It earns 3% cash back on gas or on your choice of one of five other categories, plus 2% back at grocery stores and wholesale clubs (on up to $2,500 in combined choice category/grocery store/wholesale club quarterly purchases). All other purchases earn 1% back. It has a $0 annual fee.

Too many reward caps and rules

With the Sam's Club card, the 5% cash-back rate on gas is capped at $6,000 in spending annually, and your total rewards-earning ability for all purchases is capped at $5,000 a year. Incidentally, you also must earn at least $5 in rewards to receive any cash back, and rewards that don't meet that threshold won't carry over to the next reward period. That's a lot of rules and limitations to keep track of. If you prefer no-fuss rewards, the Citi® Double Cash Card – 18 month BT offer presents 2% cash back on all purchases: 1% when you make a purchase and 1% when you pay it off. That makes it a good card to use at Sam's Club or anywhere else. The card has an annual fee of $0.

A long wait for rewards

With the Sam's Club® Mastercard®, you can redeem rewards only once a year. For more flexible redemptions, look to the $0-annual-fee Chase Freedom® or the $0-annual-fee Discover it® Cash Back. They both earn 5% cash back in rotating categories that you activate every quarter, on up to $1,500 in quarterly spending (and 1% back on everything else). Previous categories have included gas stations, wholesale clubs, restaurants and grocery stores.

Visit NerdWallet's list of the best credit card offers to see how these cards stack up against other options.

Is the Sam's Club® Mastercard® right for you?

If you spend a lot on gas and dining out — and you’re willing to wait on your rewards — the Sam's Club® Mastercard® could be a match for your spending. But don't apply simply because you're a Sam's Club shopper, because beyond gas purchases, the card isn't as rewarding for loyalists.