- The Barclays Uber credit card has been a strong cash-back credit card since it was launched in 201
- An "excuse" is that it offers a higher repayment rate on dining purchases (4% back) than on Uber spending (2% back), but that is changing now.
- Barclays and Uber just announced some updates to the card. You will now earn 5% back on all Uber purchases and 3% back on restaurants, bars, hotels, air tickets and vacation rentals.
- This means that Uber Visa is now the most rewarding cash-back card for Uber purchases. For non-Uber Eats dining purchases, other cards like American Express® Gold Card offer higher rewards (but with an annual fee).
- The other big change is that instead of making money, the Uber card now earns Uber Cash, which you can only redeem with Uber, not for cashback or gift cards.
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Two years ago, Barclays and Uber launched Uber Visa, a cash-back card that gives up to 4% back on purchases, with no foreign transaction fees. They have just announced some revisions to this card to make it even more rewarding for Uber purchases, but less rewarding for spending in other categories.
Uber and Visa have also changed how your rewards can be redeemed, along with a few other customizations. Let's take a closer look at these revisions and see if the Uber card retains its value as a leading rewards card with no annual fee.
Remember that we focus on the benefits and benefits that give these good cards good alternatives, not things like interest and late fees, that far outweigh the value of any points or miles. It is important to practice financial discipline when using credit cards by paying the balance in full each month, making payments on time and using only what you can afford to repay.
The key changes to the Uber card
The card name has been changed from Uber Visa to the Uber card, but the biggest changes are the refund categories. You will now earn 5% back on all Uber purchases including Uber rides, Uber Eats bookings and even JUMP bike and scooter rides. This is up from the previous rate of 2% return for online purchases including Uber.
On the other hand, you now earn only 3% back on restaurants, bars, hotels, vacation rentals and airline tickets. And as before, you earn 1% back on all other purchases.
Another big change is that instead of making money back, you earn your rewards in form or Uber Cash, which is a credit you can use for Uber rides, Uber Eats bookings, and JUMP bike and scooter rides.
Although this change means that you can no longer redeem direct cash gift or gift card rewards, most cardholders are probably not a problem. After all, if you have an Uber card, chances are you're a regular user of Uber's services, and Uber Cash will be just as valuable to you as cash back.
Another minor change is the addition of a roadside delivery service that offers pay-per-use services for a flat fee of $ 69.95. And the card no longer offers $ 50 credit to power services that it once did.
You still get a valuable cellphone protection plan that covers you for up to $ 600 in damage or theft. The card also retains its $ 100 sign-up bonus after new cardholders spend $ 500 within three months of opening the account.
What can you expect if you already have an Uber card? Current card members will be transferred to the new product once during the first six months of 2020. You will be notified of your changes and transition date via email and on your statement.
How the new Uber card stacks up to its competitors
With the new 5% rate on Uber purchases, the Uber card offers the highest return on Uber purchases among cash back cards.
Some cardholders may be disappointed that they now get 3% instead of 4% back at restaurants and bars (other than Uber Eats, which will earn 5%). However, the Uber card still offers the highest return on restaurant purchases that you find among fee cards without an annual basis. Capital One® SavorOne® Rewards credit cards also earn 3% back on dining (and entertainment), but it does not give you a bonus cash back on Uber or other transit purchases.
Plus, even premium cards like American Express Gold Cards and Citi Prestige® cards that offer 4x or 5x points at restaurants usually won't use these bonuses on Uber Eats, so if you want to use Uber's food delivery service, Uber Visa offers the best the return on your expenses.
Other cards offer transit purchase bonuses, including rideshare services like Uber. For example, American Express Blue Cash Preferred® cards specifically include rideshare services as a bonus category. But it only gives you 3% cash back on these purchases compared to 5% on Uber with the Uber card, and it has an annual fee of $ 95.
These Uber card updates are clearly designed to appeal more to regular Uber customers, and maybe a little less to those who just want the card to make money at restaurants. Those using Uber Eats will earn even more rewards now thanks to the new 5% bonus category, and you will still receive a very competitive 3% return on restaurants, bars, hotels and airline tickets.
I don't think many existing cardholders will rush to close their accounts as they read this news. Instead, those who use Uber services weekly, or even daily, will now have an even better reason to consider this card.