A recent survey by Chase Card Services showed that a majority of Americans are on the fence about the plastic they carry in their wallet. Yet despite the lackluster experience so many Americans feel they have with their credit cards, a growing number of consumers are eyeing new card options that promises to enhance their purchasing experiences.
Chase's 5% Cashback Discover Card, which launched in 2015, aims to entice new cardholders by promising to pay interest at the lowest amount possible, especially as consumers continue to struggle with the ongoing effects of the Great Recession. A number of other rewards cards that utilize the Money Back Vacation Interest Double Cashback or Cashback Double CashBack, for example, offer 5% cashback while having no annual fee. But the new Chase card, the 3% Cashback Blue Cash Everyday Card, will enable cardholders to receive an additional 1% Cashback while also earning 5% in cashback on top of their cashback.
"We know it's hard for consumers to break free from the track record of interest rates they'd encountered during the financial crisis," explained Michael Santoli, Head of Chase's Rewards, Savings and Prepaid Cards.
But Santoli says that by partnering with the nation's third largest retailer, Safeway, and providing consumers with a way to earn cash back on groceries, this new card offers consumers a better alternative to credit cards, which do not often offer cash back on those categories.
“With cardholders typically able to receive cash back on purchase purchases in full, cardmembers can enjoy Chase’s 2% cashback while saving money on some of the nation’s most popular grocery items,” Santoli added.
Cardholders earn 1% Cashback on all spending in the grocery category while earning 5% Cashback on all dining and gas purchases. Cardholders can also earn 1% Cashback on each category and 2% on everything else on the card. As a bonus, the card also offers Blueprint, an innovative payment solution that offers cardholders access to their spending patterns for make personalized credit card spending.
“We’re very excited to be partnering with Safeway, a business that has always stood out to our Discover Rewards card customers,” Santoli said. “Even though our Cashback card offers similar features to our Discover Rewards card, we believe the upgrade to a 3% Cashback Blue Cash Everyday Card offers our customers a much bigger benefit – the ability to earn more cash back on grocery purchases.”
Not only can cardholders earn cash back on groceries, but Chase is partnering with MinuteClinic to offer cardholders an extra perk to help reduce the number of doctor visits they have to take each year. Cardholders who use their card in conjunction with a MinuteClinic network discount on membership fees will get an extra 25% discount.
“The new Cashback Blue Cash Everyday Card from Chase allows us to offer an increased discount by allocating 5% of the card’s cash back to MinuteClinic members, which will increase savings for our patients,” said Ruchi Krishnan, Senior Vice President, Consumer Strategy and Execution at Safeway. “Our partnership with Chase will help us provide more healthcare at home for our patients, empowering them to stay healthy.”
If you’re unsure about the difference between cashback, Bonus Points, or Cash back Cashback, visit NerdWallet’s card comparison guide.
This story originally appeared on NerdWallet.