5 Things To Know About the U.S. Bank Shopper Cash Rewards® Visa Card

Are you looking for the best way to earn shopping rewards by using your credit card at your favorite retailer?

The U.S. Bank Shopper Cash Rewards® Visa Signature® Card could be just what you need to add to your wallet in 2023.

With rewards up to 6% back on purchases made at major retailers like Amazon and Walmart, you could find yourself earning up to three times the rewards points that a 2% cash back card would give for the same transaction.

But there’s an annual fee involved, so you’ll need to do some analysis to see if it’s actually worth it.

Team Clark has all the information you’ll need to make an informed decision on whether this credit card makes sense for you.

U.S. Bank Shopper Cash Rewards® Visa Signature® Card: The Basics

Learn More → Annual Fee: $95.00 Bonus Offer: Get a $250 bonus after you spend $2,000 in eligible purchases within the first 120 days of account opening. Rewards Program Details: 6% cash back: On your first $1,500 in combined eligible purchases each quarter with two retailers you choose. 5.5% cash back: On prepaid hotel and car reservations booked directly in U.S. Bank’s Rewards Travel Center. 3% cash back: On your first $1,500 in eligible purchases on your choice of one everyday category. 1.5% cash back: On all other eligible purchases.

Note: U.S. Bank waives the $95 annual fee for the first year of card membership.

The U.S. Bank Shopper Cash Rewards® Visa Signature® Card is a rewards credit card that gives up to 6% back on spending at two retailers of your choice. You also can receive 5.5% cash back on select travel purchases.

That’s among the best cash back rewards rates available!

But there are some limitations to both offers. Let’s walk through the five things you need to know before you apply for this card.

U.S. Bank Shopper Cash Rewards® Visa Signature® Card: 5 Things To Know

There are some great cash back opportunities with this card, but you may be wondering if they’re worth paying for the annual fee.

Take the following into consideration as you do the math for your financial situation.

1. The 6% Shopping Reward Has Retailer and Earning Limitations

U.S. Bank’s major marketing piece for this credit card is the 6% cash back you can earn from two retailers each quarter.

You’re probably wondering if you’ll be able to leverage this perk enough to make it worth paying $95 per year to use the card.

That likely depends on two things:

1. Do you shop at the approved stores?
2. Will you consistently spend a combined $1,500 per quarter at the stores you pick?

First, let’s look at the list of retailers from which you can choose two per quarter to earn the 6% cash back:

• Ace Hardware
• Apple
• Amazon.com
• Anthropologie
• Bed, Bath, & Beyond
• Best Buy
• Chewy.com
• Crate and Barrel
• Disney
• Home Depot
• Ikea
• Kohl’s
• Lowe’s
• Lululemon
• Macy’s
• Menards
• Nordstrom
• Pottery Barn
• QVC
• Restoration Hardware
• Target
• Walmart
• Wayfair.com
• Williams Sonoma

There are some very popular retailers on this list, so it’s possible that many consumers can find two that they feel good about on the list.

Next, you should do some quick math to see if the combined spending you do with those stores is going to total up to $1,500 during the upcoming three-month period. That’s a combined $500 per month.

Remember, you’re picking these before you spend. So you’ll need to be able to do a decent job of projecting your upcoming spending habits.

If you are spending at that pace, you’ll be able to maximize the 6% cash back bonus.

And that’s important, because maximizing your 6% rewards category spending each quarter will earn you $90 in cash back. If you do that all four quarters, that can be worth up to $360 per year.

(Note: Any spending you do at your chosen retailers that is beyond $1,500 in that quarter will earn the standard 1.5% cash back.)

Is This Better Than a 2% Cash Back Card?

The short answer is: Yes, if you pick the correct categories and spend accordingly.

As we established, maxing out the spending on all possible 6% cash back earning periods will earn you $360 per year. If you take away a $95 annual fee (which, again, is waived in the first year), you’ll be down to $265 in net earnings.

If you spent that same $6,000 with a 2% cash back card, you’d only earn $120 in cash back. So the U.S. Bank card is earning you an additional $145 per year even after the annual fee!

However, it’s worth noting that using this card in tandem with a 2% credit card is likely the more effective strategy. You could take advantage of the bonus cash back opportunities while spending with this card, but also get the extra half percent cash back (2% vs. 1.5%) on all other everyday purchases by instead using a 2% card for those purchases.

2. The Travel Cash Back Offer Has 2 Major Sticking Points

The next largest cash back redemption option is 5.5% cash back on select prepaid hotel and car rental reservations.

This is another huge cash back rewards earning opportunity, but it has two pretty important limitations:

1. These purchases must be prepaid. This an important qualifier that many people may skip over when glancing at the rewards. This means you may have to take some risks with nonrefundable reservations.
2. Travel must be booked through U.S. Bank’s portal. This is another sticking point that may hinder your ability to maximize this cash back offer. For various reasons (pricing, loyalty points, etc.), you may find that you’re unlikely or unwilling to use the Rewards Travel Center to book your travel.

3. Costco Shoppers Could Earn 3% Back With This Card

In addition to picking two retailers for 6% back each quarter, you also can earn 3% back on one “everyday” spending category with this card.

You’ll be able to choose from the following:

• Wholesale clubs
• Gas and EV charging stations
• Bills and utilities

U.S. Bank acknowledges both Costco and Sam’s Club as eligible for the wholesale club category.

If you’re a Costco nut like money expert Clark Howard, you may want to use this Visa card for in-store Costco purchases.

Doing so could actually earn you an extra 1% on your spending when compared to the Costco Anywhere Visa® Card by Citi, which offers 2% back on spending at the wholesale club.

4. The Welcome Offer Has a Higher Spending Requirement Than Some Competitors

U.S. Bank offers a $250 bonus if you spend at least $2,000 with the card within the first 120 days of membership.

While this does fall short of our list of cards with welcome bonuses worth at least $500, the $250 offer does stack up well against our best welcome bonus offers from cards with annual fees under $100.

However, it comes with a little higher spending requirement than some of the other cards on our list. For example, the Wells Fargo Active Cash® Card offers a $200 welcome bonus that just requires $500 in spending during the first three months of card membership.

It’s also worth noting that U.S. Bank is waiving the annual fee for the first year of card membership. Some may consider that as an additional $95 back your pocket as “thanks” for being a new cardholder.

5. There Are No Introductory APR Offers for New Purchases or Balance Transfers

If you’re looking for a card that will give you a 0% APR period on new purchases or help you get interest rate relief via a balance transfer, this is not the card for you.

There is no introductory APR period for new purchases or balance transfers. And the transfers are subject to a 3% transfer fee.

Pros and Cons: U.S. Bank Shopper Cash Rewards® Visa Signature® Card

Are you considering adding the U.S. Bank Shopper Cash Rewards® Visa Signature® Card to your wallet? Let’s review some of the major pros and cons of the card before you make your final decision:

Bottom Line: If you’re good at anticipating which retailers will earn your business each quarter, you could do really well earning 6% cash back with this card.

For example, customers who use Amazon, Walmart and Target for their everyday shopping could consistently pick two of those three for their bonus-earning retailers.

And if you know when a big purchase is being made with a company like Apple or Lowe’s, you could switch to those for a quarter and perhaps earn the majority of your 6% on $1,500 spending for those big-ticket purchases.

I recommend considering this credit card if this type of spending describes you.

Additionally, the travel portal purchases could be nice for some consumers, especially those who don’t already have a travel rewards card and don’t mind using the U.S. Bank portal for booking.

Oh, and Costco or Sam’s Club members could also earn 3% back on wholesale club purchases with this card, too.

Add it all together and there’s a good chance that many customers will earn enough to make it worth the $95 annual fee.

Are the rewards good enough for you to consider paying this card’s annual fee? Let us know what you think in the Clark.com community.