Yesterday, Starbucks and Chase announced the new Starbucks Rewards Visa credit card. So here’s what you need to know about the new card.
Starbucks Rewards
Starbucks fans are a loyal bunch. This is especially true of the coffee giant’s popular loyalty program, Starbucks Rewards. And if you aren’t familiar with the program, here’s a quick rundown:
- Earn two (points) Stars for every $1 spent using a Starbucks gift card registered to your mobile app
- One free drink or food item on your birthday
- Free refills on hot or iced brewed coffee or tea
- Early or extended access to promotions
- Personalized coupon offers
However, upon reaching Gold Status (300 Stars), members will receive all of the above, plus:
- Personalized gold color Starbucks Card
- One free drink or food item for every 125 Stars earned
- Once monthly Double-Star Days
So, for simplicity sake, let’s say you buy a $5 cup of coffee from Starbucks. It’ll take 30 of these coffees to get you to Gold Status. And from there, you’ll be able to redeem 125 Starpoints for a Starbucks drink or food item. This breaks down to 12.5 $5 purchases to earn a free reward, which comes out to $62.50. Valuing Star Points is a little tricky, though, as your free item redemption is good for any size drink you want and allows additions to be made. You could easily get $10 in value out of it if you really want to. However, Starbucks Rewards awards are not redeemable to Starbucks Reserve locations.
Starbucks Rewards Visa
With the popularity of Starbucks Rewards, a co-branded credit card was inevitable. Not only will having a credit card help to build more loyalty, but it allows Starbucks to further monetize its program. And the card does seem like it’ll be rather compelling for diehard Starbucks fans. That being said, the card does carry a $49 annual fee, but it comes with:
- 2,500 Stars when you spend $500 in the first 3 months of account opening
- 250 Stars when you load your Starbucks Card with your Starbucks Rewards Visa for the first time
- Gold Status for as long as you keep the card
- One Star for every $1 you load to your Starbucks (gift) Card
- Stacks with normal two Stars per $1 spent, for a total of three Stars per $1 spent on your Starbucks (gift) Card
- One Star for every $4 spent on purchases made outside of Starbucks
- Eight Barista Pick rewards per year
The Starbucks Rewards Visa, which is issued by JP Morgan Chase, carries a 17.24% to 24.24% APR, based on creditworthiness. Applications are available now via Starbucks own website, though the card has not been added to Chase’s own site yet.
Starbucks Rewards Visa, Final Thoughts
This isn’t a card I’m going to be adding to my wallet, as I’m not an avid Starbucks drinker. I am a fan of their Reserve Roastery, but I don’t visit the normal stores all that often. And when I do, I usually just put the spend on Mrs. Island Miler’s card so she can earn more Stars. Further, $49 seems like a bit much for a coffee shop co-branded card. Especially since cardholders, in essence, only earn one extra Star per dollar spent with Starbucks. And the 1 Star per $4 spent elsewhere comes out to $31.25 in spend to get a free drink, which isn’t a bad value, but again, isn’t for me. But, if you are daily Starbucks patron, this card could give you a decent return. It more than pays for itself the first year with the 2,750 bonus Star offers.
1 star for every 4 dollars means you would get one free drink, sandwich, or pastry every $500 spent, not every $31. Too bad. :)
Oh totally, Jon W. For non-Starbucks spend, yes. But for Starbucks spend, you get 3 Stars per $1 (2 for using your Starbucks Card and 1 for loading said card with your Starbucks Visa). And at that rate, for a $5 coffee, you’d earn 15 Stars, which translates into a free drink every 9 cups of coffee. My 30 figure was just how much you’d have to spend under the Rewards program (no credit card) to achieve Gold Status.