Sam's Club Mastercard Review

Full Review of Sam's Club Mastercard

Pros Explained

• Higher cash back in certain categories: The Sam's Club Mastercard offers 5% back on gas and 3% back on dining and takeout. The 5% cash back on gas applies only to the first $6,000 in gas purchases each year, however.
• No annual fee: Because there is no annual fee, there’s no need to worry about whether your rewards will justify the fee. However, cardholders who want to shop at Sam’s Club have to purchase a membership, and Sam’s Club and its website are the only places where you can redeem your cash-back rewards.
• No foreign transaction fee: This card charges no foreign transaction fees, and because it's a Mastercard, it's widely accepted abroad.

Cons Explained

• Limit to the amount of cash back: You can earn 5% cash back on up to $6,000 in gas purchases each year, for a total of $300. Once you reach the $6,000 threshold, gas earns just 1% cash back. On top of that, you’re limited to $5,000 in total cash back for the year.
• Must buy a Sam's Club membership to use the card at Sam's Club: Even though the Sam's Club Mastercard can double as a membership card at Sam's Club, you don't get automatic membership. You still have to pay for that membership if you want to use the card for shopping at Sam's Club. What's more, because the cash-back rewards can only be redeemed at Sam's Club, you'll need a membership in order to take advantage of the rewards program. A regular Sam's Club membership costs $45, while a Plus membership, with additional benefits, is $100.

Who This Card Is Best For

The Sam's Club Mastercard is designed for consumers who regularly shop at Sam’s Club and want a convenient way to pay with a card that doubles as a membership card.

This card could also be a good choice for anyone who drives a lot. As of 2020, the average household spent about $1,568 a year on gas, according to the Bureau of Labor Statistics. So even if you’re just average, you’d collect $78.40 in cash back, which is more than enough to justify the cost of a regular Sam’s Club membership.

Additionally, with the 3% cash back on dining and takeout, this card can be good for those who like to spend money on eating out.

But consumers who want a card that rewards them for everyday spending, such as groceries, might be better off looking elsewhere. For example, the American Express Blue Cash Everyday card offers 3% cash back at U.S. supermarkets (up to $6,000 in purchases, then 1%), as well as 2% cash back at U.S. gas stations and certain department stores. The SavorOne Rewards card from Capital One offers 3% cash back at grocery stores, dining, and entertainment.

Rewards Earning Details

Cardholders earn 5% cash back on up to $6,000 in gas purchases per year. Additionally, the card offers 3% cash back on dining and takeout. Other purchases earn 1%.

There's also a $5,000 cap on how much cash back you can earn in a year.

Rewards Redemption Details

Cash-back rewards can be redeemed only at Sam's Club locations, including SamsClub.com.

How to Maximize Your Rewards

The best way to maximize rewards with the Sam's Club Mastercard is to use it to buy gas, at least until you’ve spent $6,000, at which point the 5% cash back drops to 1%. It also would be worthwhile to maximize use of this card for dining and takeout to take advantage of the 3% cash back earnings for these categories.

The Sam's Club Mastercard also could be used to complement another credit card, with a different rewards structure. For example, you could use the Amex Blue Cash Everyday card to get 3% back on groceries (on up to $6,000 in purchases) and then use the Sam's Club card for its 5% cash back on gas, which is much higher than Blue Cash Everyday's 2% gas earnings rate.

Sam's Club Mastercard's Standard Benefits

There is no foreign transaction fee for the card's standard benefits.

Cardholder Experience

Synchrony Bank, which issues the Sam's Club Mastercard, came in 9th out of 11 national credit card issuers in J.D. Power's 2021 U.S. Credit Card Satisfaction Study. It scored 788 out of 1,000 points, compared with the national average of 809 points.

Cardholders can manage their Sam's Club Mastercard account online, making it easy to view statements, pay the bill, and set up account alerts.

Security Features

For the most part, the Sam's Club Mastercard provides security measures common to other Mastercards. This includes zero liability for fraudulent purchases and ID theft protection. The card doesn’t offer much in the way of additional security.

Final Verdict

The Sam's Club Mastercard could work well for anyone who wants 5% cash back on gas or 3% cash back on dining and takeout. However, it might be best for people who already have a Sam’s Club membership, since that’s required in order to redeem rewards.

If you're looking for more flexible cash-back rewards with tiered categories, the Blue Cash Everyday card from American Express and the SavorOne Rewards card from Capital One could be good alternatives. However, the Sam's Club Mastercard can also be a useful complement to another card, especially one with higher rewards on purchases like groceries.