Sam’s Club Mastercard Credit Card Review – Should You Consider It?
The Smart Investor has collected card information independently. Issuers did not provide the details, nor are they responsible for their accuracy. The review is not a recommendation, the actual rates/fees may be different.
Sam’s Club Mastercard is a store cashback card that has a few different ways to earn rewards. This card can be used anywhere Mastercard is accepted, not just at Sam’s Club. Sam’s Club is owned by Walmart. The rewards categories do not change and are great for those who spend a lot on gas and traveling and who are Sam’s Club members.
Sam’s Club Mastercard Card
Great Card For Sam’s Club Shoppers
Good – Excellent Credit
60,000 Point Sign-Up Bonus
No Blackout Dates
$95 Annual Fee
Low Merchandise Rewards
Highlights
- 25% More through Ultimate Chase Rewards
- No Foreign Transaction Fee
- Purchase Protection
Here’s a summary of the main pros & cons (click to see explanation or scroll down):
The Benefits
Let’s take a look at the benefits of the Sam’s Club Mastercard and see if it’s the right one for your wallet or not.
Cash Back on Gas, Restaurants and Travel & Other Spending
Sam’s Club Mastercard has 5% cash back on gas purchases up to $6,000 in purchases a year, and then 1% after that. It also has 3% cash back for any spending on restaurants. It also has 3% cash back on eligible travel, which includes airfare, hotels, cruises, and car rentals. Both spending categories do not have a spending limit. Lastly, you can get 1% cash back on all other spendings with no limit.
No Annual Fee
Sam’s Club Mastercard does not have an annual fee as long as you are a Sam’s Club member.. Membership starts at $45 a year. You can start earning cash back immediately.
Sign-Up Bonus
Sam’s Club Mastercard has a small sign-up bonus you can get. If you spend $45 on the first day of getting your credit card, they will cover your first-year club membership of $45.
No Foreign Transaction Fee
Sam’s Club Mastercard does not have a foreign transaction fee. This is unusual for a non-travel rewards card. This is a great perk because you can earn cash back on your travel expenses.
Earn More Rewards
If you get the higher tier membership you can earn more rewards like free shipping and an additional $10 cash back on every $500 spent on qualifying purchases.
Other Benefits
Sam’s Club Mastercard offers cardholders extended purchase warranty protection and identity theft protection. The credit card also acts as your membership card, so you will only need one card.
The Drawbacks
Here are the most important cons you should consider before applying to the Sam’s Club Mastercard:
Redemption Restrictions
Sam’s Club Mastercard cashback can only be redeemed or spent at Sam’s Club. This redemption also only happens once a year in February. With other cards you can redeem rewards almost anytime.
No Sign-Up Bonus or 0.00% APR Introductory Rate
Sam’s Club Mastercard does not have a large sign-up bonus or any introductory rates like many cards on the market.
Rewards Cap
There is a $5,000 dollar cap on the Sam’s Club Mastercard. Your rewards can not surpass $5,000. That is a very large threshold for many households but some consumers may spend that much and will find better rewards through other cards.
There are Better Cashback Cards
There are other cashback cards in the market that offer higher cashback rewards. Some have rotating categories, but depending on your spending habits and with a little planning, you can earn more cash back on your purchases. If you are a big spender and don’t mind an annual fee, there are other cards with higher cashback rewards, but not by much. Also, there are store cards that offer much better rewards when shopping at the store where the card was issued. Sam’s Club Mastercard only offers 1% back on spending at their store.
High APR
The APR for the Sam’s Club Mastercard is a 17.15% to 25.15% variable rate, which is high for a card that requires borrowers with good to excellent credit histories.
Alternatives to Sam’s Club Mastercard Card
There are other credit cards that do offer comparable cash back rewards – we’ve summarized the most popular cards which can use as an alternative to the Sam’s Club Mastercard:
Costco Anywhere Visa Card
The Costco Anywhere Visa Card is a competitive store card from Sam’s Club’s biggest competitor. The Costco Anywhere Visa Card by Citi offers a lower cashback reward on gas of 4% but with a bigger spending limit of $7,000 and then 1% after that. Costco Anywhere Visa Card by Citi has 3% back on restaurants and travel. The card has 1% on all other spendings, including Costco. This card also does not have an annual fee, but you still have to pay for the Costco membership, which is higher at $60. The Costco Anywhere Visa Card by Citi also does not offer to waive the first year’s membership fee.
CitiBank Double Cash Card
The CitiBank Double Cash card is a comparable cashback card. It does not have a sign-up bonus but does offer a longer introductory 0.00% APR for 18 months. The CitiBank Double Cash card offers 1% cash on all purchases and 1% cash back after paying for those purchases. You could make 2% back on all purchases as long as you pay your credit card bill. The CitiBank Double Cash card does not have an annual fee.
Chase Freedom card
The Chase Freedom card offers a $150 sign-up bonus after only spending $500 in purchases after 3 months. That is a low spending threshold to receive a sign-up bonus. The Chase Freedom card has 1% cash back on all purchases. This card also has revolving cashback bonuses that offer 5% on rotating categories. These categories change once a quarter but can increase your cash back if the consumer pays attention to their spending. It does have a cap of $1,500 on the bonus spending category. The Freedom card does not come with an annual fee.
Is the Sam’s Club Mastercard Card Right for You?
The Sam’s Club Mastercard is a great card for Sam’s Club shoppers. It has very competitive cashback rewards and benefits in some spending categories. Cardholders that spend a lot on gas each year will benefit the most from this card. This card is also great for those who do a lot of traveling. The 3% cash back on travel rewards is better than most travel rewards credit cards on the market. The biggest drawback to the Sam’s Club Mastercard is you have to wait a year for your cash back, and it can only be redeemed at Sam’s Club. If you are not a Sam’s Club member, you would want to pass on this card. There are better cashback cards. Sam’s Club Mastercard rewards are straightforward and easy to understand and most Sam’s Club members would benefit by owning this card.