Uber is the latest company to jump into the crowded credit card market, and it's making a big splash with its new rewards card, which offers up to four percent back on select purchasing categories.
The popular ride sharing company partnered with Barclays for its Uber Visa Card, which hits the market on November 2. Consumers can apply for the card either online or in the Uber app and find out their approval status in minutes. If approved, the card will be fully integrated into the cardholder's Uber wallet for instant use on Uber rides. Cardholders will also receive a physical card in the mail.
"We are always looking for unique ways to surprise and delight our riders, which is the reason we built the Uber Visa Card," said David Richter, global head of business and corporate development, Uber, in a statement. "We partnered with Barclays to design a credit card that is not only custom-tailored to reward our customers' everyday lifestyle, but is also fully integrated into the Uber app experience."
The card has no annual fee and a tiered rewards points system, which offers a whopping four percent back on eating out. This category includes restaurants, takeout, bars and UberEATS; three percent back on airfare, hotels and vacation home rentals, including Airbnb rentals; and two percent back on online purchases including Uber, online shopping and video/music streaming services. This last category doesn't include third party payment methods like PayPal, Venmo or mobile payment services like Apple Pay and its competitors. This also doesn't include online purchases for utilities, contracted services, government services or professional services. Those get added to the "all other purchases" category, which gives one percent back.
Cardholders can redeem points for Uber credits, statement credits, cash back and gift cards. There's no limit on the amount of points you can earn, and they never expire as long as the account is open, active and in good standing.
The card also has additional bonuses, including a sign up bonus for new cardholders that's for 10,000 points, which is the equivalent of $100 if you spend $500 on purchases within the first 90 days the account is open. If you spend $5,000 on the card per year, you'll get up to $50 credit for online subscription services like Spotify, Netflix and Amazon Prime. If you pay your monthly mobile bill with the card, you'll get mobile phone insurance of up to $600 for damage and theft. Traveling out of the country is a little cheaper with this card because it doesn't have any foreign transaction fees. Other perks include invitations to special events in certain cities, complementary FICO scores and Visa's $0 fraud liability protection.
While the card has no annual fee, its variable APR is pretty steep. Cardholders will face a 15.99 percent, 21.74 percent or 24.74 percent interest rate on purchases and balance transfers, depending on their creditworthiness. The APR for cash advances is even steeper at 25.99 percent. The card also has fees for balance transfers and cash advances, at either $10 or three percent of the amount of each transaction, whichever is greater. Late payment and returned payment fees can be up to $37 each.
"Visa is proud to be working with Uber and Barclays to deliver a new kind of credit card designed specifically for on-the-go consumers," said Kirk Stuart, senior vice president, global co-brand partnerships, Visa, in a statement. "The Uber Visa Card delivers unique value to cardholders by providing the opportunity to instantly earn and redeem rewards, all at their fingertips through the Uber app."
