topic Re: What credit card gives the best rewards for online shopping? in Credit Cards

What credit card gives the best rewards for online shopping?

folks19 — Fri, 24 Jul 2020 19:43:23 GMT

I'm looking for a credit card that gives the best rewards for online shopping. It needs to be a card that has good rewards for all online shopping. The Amazon Prime card, for example, that gives 5% cash back on Amazon is no good for me because I shop at many different sites and not just Amazon.

As of now, my best options seem to be either the Citi double cash card, the PayPal card, or the Fidelity card, which all give 2% cash back on everything with out a limit.

Another option a card from Bank Of America (I forgot its name) that gives 3% cash back on categories, one of which is online shopping, and you can keep the same category without updating it every quarter. The thing with that card is that the 3% cash back is only up to 2,500 every querter, and I do more shopping than that (for a bussiness).

Anyone have any thoughts?

Re: What credit card gives the best rewards for online shopping?

coldfusion — Fri, 24 Jul 2020 20:10:06 GMT

You're thinking of the BoA Cash Rewards card in all of its different versions (MLB card, Pride card, Susan Komen card, etc. etc.) which has 3% cashback on a selected category, one of which is online purchases, even more if you're a Preferred Rewards member up to 5.25% for a Platinum Honors client.

There's also the AODFCU Visa card with straight 3% cashback as statement credit on all purchases.

Re: What credit card gives the best rewards for online shopping?

UpperNwGuy — Fri, 24 Jul 2020 20:27:53 GMT

@coldfusion wrote:
You're thinking of the BoA Cash Rewards card in all of its different versions (MLB card, Pride card, Susan Komen card, etc. etc.) which has 3% cashback on a selected category, one of which is online purchases, even more if you're a Preferred Rewards member up to 5.25% for a Platinum Honors client.

There's also the AODFCU Visa card with straight 3% cashback as statement credit on all purchases.

I recommend the Bank of America Cash Rewards card. 3% for online if you select that as your 3% category.

Re: What credit card gives the best rewards for online shopping?

wasCB14 — Fri, 24 Jul 2020 20:32:39 GMT

I use the BofA WWF CR for 5.25%.

Spend caps are generally the tradeoff of broad category definitions earning more than 3%.

Re: What credit card gives the best rewards for online shopping?

Anonymous — Fri, 24 Jul 2020 20:37:24 GMT

Both AOD and US Alliance credit unions have 3% cash back on all purchases cards with no caps. That's the way I would go personally.

Re: What credit card gives the best rewards for online shopping?

kdm31091 — Fri, 24 Jul 2020 20:46:21 GMT

I'd also suggest a flat rate card.

Re: What credit card gives the best rewards for online shopping?

folks19 — Fri, 24 Jul 2020 21:33:28 GMT

@coldfusion wrote:
You're thinking of the BoA Cash Rewards card in all of its different versions (MLB card, Pride card, Susan Komen card, etc. etc.) which has 3% cashback on a selected category, one of which is online purchases, even more if you're a Preferred Rewards member up to 5.25% for a Platinum Honors client.

There's also the AODFCU Visa card with straight 3% cashback as statement credit on all purchases.

Is it possible for to get all the versions of the 3% cash back? Maybe I'll try that. Over time, Obviously.

By the way, the 5.25 cash back for the preferred members sounds good at first, but when I did the math, it turns out to be a big loss. That's because of the interest one can earn that money elsewhere.

However, if it's possible to get more than 1 card with the 3% cash back up to 2,500 per quarter per card, then the benefit of being a preferred member may be worth it.

I'll try to post the mathematics I used to calculate the benefit and loss of being a preferred member.

Re: What credit card gives the best rewards for online shopping?

folks19 — Fri, 24 Jul 2020 21:34:30 GMT

And thanks everyone for the information about the credit unions. I never heard of those, but I'll definitely check them out.

Re: What credit card gives the best rewards for online shopping?

wasCB14 — Fri, 24 Jul 2020 22:09:35 GMT

@folks19 wrote:
@coldfusion wrote:
You're thinking of the BoA Cash Rewards card in all of its different versions (MLB card, Pride card, Susan Komen card, etc. etc.) which has 3% cashback on a selected category, one of which is online purchases, even more if you're a Preferred Rewards member up to 5.25% for a Platinum Honors client.

There's also the AODFCU Visa card with straight 3% cashback as statement credit on all purchases.
Is it possible for to get all the versions of the 3% cash back? Maybe I'll try that. Over time, Obviously.

By the way, the 5.25 cash back for the preferred members sounds good at first, but when I did the math, it turns out to be a big loss. That's because of the interest one can earn that money elsewhere.
However, if it's possible to get more than 1 card with the 3% cash back up to 2,500 per quarter per card, then the benefit of being a preferred member may be worth it.

I'll try to post the mathematics I used to calculate the benefit and loss of being a preferred member.

True, BofA pays next to nothing on cash deposits. I maintain eligibility with investments and $1 in a checking account.

Re: What credit card gives the best rewards for online shopping?

coldfusion — Sat, 25 Jul 2020 00:04:08 GMT

@folks19 wrote:
@coldfusion wrote:
You're thinking of the BoA Cash Rewards card in all of its different versions (MLB card, Pride card, Susan Komen card, etc. etc.) which has 3% cashback on a selected category, one of which is online purchases, even more if you're a Preferred Rewards member up to 5.25% for a Platinum Honors client.

There's also the AODFCU Visa card with straight 3% cashback as statement credit on all purchases.
Is it possible for to get all the versions of the 3% cash back? Maybe I'll try that. Over time, Obviously.

By the way, the 5.25 cash back for the preferred members sounds good at first, but when I did the math, it turns out to be a big loss. That's because of the interest one can earn that money elsewhere.
However, if it's possible to get more than 1 card with the 3% cash back up to 2,500 per quarter per card, then the benefit of being a preferred member may be worth it.

I'll try to post the mathematics I used to calculate the benefit and loss of being a preferred member.

Don't forget that investments held through a Merrill Edge brokerage account also count toward Preferred status, and that includes investments made in mutual funds and ETFs from another financial institutions.

One can hold multiple Cash Rewards cards. I myself have 2 of them plus the MLB co-branded version, and I can select whatever category I want for each of them independent of the others.

Re: What credit card gives the best rewards for online shopping?

Aim_High — Sat, 25 Jul 2020 19:41:00 GMT

@coldfusion wrote:
@folks19 wrote:
By the way, the 5.25 cash back for the preferred members sounds good at first, but when I did the math, it turns out to be a big loss. That's because of the interest one can earn that money elsewhere.
Don't forget that investments held through a Merrill Edge brokerage account also count toward Preferred status, and that includes investments made in mutual funds and ETFs from another financial institutions.

Nobody in their right mind would deposit $100K in a Bank of America checking and savings account just to earn the higher credit card rewards rates in Preferred Rewards. The interest payout is pathetic, even comparative to many other banks and credit unions' regular accounts not to mention higher-yielding money market savings. But if you already have money in the stock market or longer term investments like IRA's that can be moved to Merrill Lynch (part of Bank of America), that can be a feasible way to qualify for the higher rewards without jeopardizing your returns. I imagine that is where most Preferred Rewards members have the majority of their holdings.

Re: What credit card gives the best rewards for online shopping?

Taurus22 — Sat, 25 Jul 2020 22:13:56 GMT

Like others have mentioned, I have both the AOD 3% Visa card along with the BoA Cash Rewards MC.

One thing to consider, if you decide to go with BoA and get multiple cards, I would try to make sure they are all MC versions......for purchase protection. Although I have the AOD 3% card, since it is Visa I don't get purchase protection, so I still primarily use my BoA CR for online shopping. The AOD card simply gives me a backup if I were to ever exceed the $2500/mth threshold.

Just my $0.02

Re: What credit card gives the best rewards for online shopping?

wasCB14 — Sat, 25 Jul 2020 23:55:07 GMT

@Taurus22 wrote:
Like others have mentioned, I have both the AOD 3% Visa card along with the BoA Cash Rewards MC.

One thing to consider, if you decide to go with BoA and get multiple cards, I would try to make sure they are all MC versions......for purchase protection. Although I have the AOD 3% card, since it is Visa I don't get purchase protection, so I still primarily use my BoA CR for online shopping. The AOD card simply gives me a backup if I were to ever exceed the $2500/mth threshold.

Just my $0.02

Keep in mind that benefits on paper do not always translate to a smooth claims process. I'll use BofA WWFCR for small stuff, but expensive/fragile/complicated things go on Amex (with Costco as the V/MC alternative).

While my online spend has been high during COVID and eaten most or all of the cap, I like the WWFCR Visa for 3.5% on Costco spend (consumables like food...not extended warranty stuff, which goes on the Costco Visa).

Re: What credit card gives the best rewards for online shopping?

folks19 — Sun, 26 Jul 2020 02:18:26 GMT

Thank you all for your feedback!

I did not realize that I can meet my 100k requirement with investments. Although, I don't exactly have that amout yet to invest, but it's something to keep it mind fot the coming years.

Also, it would only be a big benifite if I have a few of the 3% cash back cards that boost up to 5.25% because each card has a 2,500 cap on the cash back (then 1%), which is 10,000 per year, which adds up to 525$ per year in cash back, which means that I'm only receiving an extra 225$ per year with my "preferred" status.

The AOD credit union card seems like my best option for now because it has no cap for the 3% cash back, and it's on everything and not just online shopping (although most of my spendings are from online shopping, for a bussiness). However, when looking at AOD's website, it seemed that I must work for select employers or be related to a member in order to join, which is not my case. Anyone have any suggestions?

Re: What credit card gives the best rewards for online shopping?

Aim_High — Sun, 26 Jul 2020 02:43:23 GMT

@folks19 wrote:
Thank you all for your feedback!
I did not realize that I can meet my 100k requirement with investments. Although, I don't exactly have that amout yet to invest, but it's something to keep it mind fot the coming years.
Also, it would only be a big benifite if I have a few of the 3% cash back cards that boost up to 5.25% because each card has a 2,500 cap on the cash back (then 1%), which is 10,000 per year, which adds up to 525$ per year in cash back, which means that I'm only receiving an extra 225$ per year with my "preferred" status.

The AOD credit union card seems like my best option for now because it has no cap for the 3% cash back, and it's on everything and not just online shopping (although most of my spendings are from online shopping, for a bussiness). However, when looking at AOD's website, it seemed that I must work for select employers or be related to a member in order to join, which is not my case. Anyone have any suggestions?

You're welcome! The lowest tier of Preferred Rewards starts at $20K in deposits or investments (Gold). The next level is Platinum with $50K and finally Platinum Honors is what requires $100K. Of course, the rewards payout on Gold and Platinum is much less at 25% and 50% bonus versus the 75% bonus you get with Platinum Honors.

The original AOD Visa discussion thread has many postings about how our members qualified regardless of the geofence or SEG's (Select Employer Groups). There were multiple ways it was done. All the postings are here if you want to read up on it:

https://ficoforums.myfico.com/t5/Credit-Cards/Juicy-new-3-CB-offering-from-local-CU/td-p/5971983

Re: What credit card gives the best rewards for online shopping?

folks19 — Sun, 26 Jul 2020 02:58:17 GMT

@Aim_High wrote:
@folks19 wrote:
Thank you all for your feedback!
I did not realize that I can meet my 100k requirement with investments. Although, I don't exactly have that amout yet to invest, but it's something to keep it mind fot the coming years.
Also, it would only be a big benifite if I have a few of the 3% cash back cards that boost up to 5.25% because each card has a 2,500 cap on the cash back (then 1%), which is 10,000 per year, which adds up to 525$ per year in cash back, which means that I'm only receiving an extra 225$ per year with my "preferred" status.

The AOD credit union card seems like my best option for now because it has no cap for the 3% cash back, and it's on everything and not just online shopping (although most of my spendings are from online shopping, for a bussiness). However, when looking at AOD's website, it seemed that I must work for select employers or be related to a member in order to join, which is not my case. Anyone have any suggestions?
You're welcome! The lowest tier of Preferred Rewards starts at $20K in deposits or investments (Gold). The next level is Platinum with $50K and finally Platinum Honors is what requires $100K. Of course, the rewards payout on Gold and Platinum is much less at 25% and 50% bonus versus the 75% bonus you get with Platinum Honors.

The original AOD Visa discussion thread has many postings about how our members qualified regardless of the geofence or SEG's (Select Employer Groups). There were multiple ways it was done. All the postings are here if you want to read up on it:
https://ficoforums.myfico.com/t5/Credit-Cards/Juicy-new-3-CB-offering-from-local-CU/td-p/5971983

Thank you so much! I will check that out. I may consider moving some of my investments in to the bank of america broker (what ever it was called...), but for now I'll check out AOD (and also the BOA's 3% card, which I can enyoy until I reach 2,500).

Do you know if there's a fee for the broker?

Re: What credit card gives the best rewards for online shopping?

wasCB14 — Sun, 26 Jul 2020 05:16:33 GMT

https://www.merrilledge.com/pricing

Basic trading has no fees.

*Of course, most discount brokerages offer free trading these days. I generally prefer Fidelity and Schwab.

Re: What credit card gives the best rewards for online shopping?

Anonymous — Sun, 26 Jul 2020 05:28:30 GMT

like some other people have mentioned i have both an aod and bank of america card, which i have my 3% category selected as online shopping. i think both of these cards are solid options 🙂

Re: What credit card gives the best rewards for online shopping?

kdm31091 — Sun, 26 Jul 2020 16:35:21 GMT

Last I read, AOD had cracked down significantly on both membership approvals and CC approvals. I thought they were now enforcing the geofence, in addition to being a lot less generous with approving the card. Someone can correct me if I'm wrong.

As far as BOA, I'd echo the comments that it makes no sense to tie up 100k in a savings account paying 0.05% or so, but if you have the assets and are okay moving them to Merrill, it can be a great option.

Re: What credit card gives the best rewards for online shopping?

Anonymous — Sun, 26 Jul 2020 17:10:31 GMT

I also have the Cash Rewards and just used it twice on EBay and the merchants coded themselves "Paypal" and I didn't get the 3%. EBay is a crap shoot or just my luck. Lucky I have Discover!