Verizon Visa® Card Review

My initial reaction was that it’s actually not too bad. As I dug into the details though, I’ve become less enamored with this card. I want to explain why. First, let’s take a closer look at the rewards.

Verizon Visa® Card Rewards

4% on Gas

Earning 4% rewards on gas purchases is competitive. It compares favorably with the Costco Anywhere Visa^® Card by Citi, which also pays 4% on gas. The downside to the Costco card is you have to wait an entire year to get your rewards. They only issue them once a year around February.

However, we don’t spend a ton of money on gas. Unless you drive a lot, it’s 4% on a relatively small amount of money. For example, if you spend $100 a month you’ll earn $4 a month in rewards (not cash, by the way, but Verizon Dollars. We’ll come back to that in a minute). Still, 4% on gas is quite good.

4% on Groceries

The 4% on groceries is also good, but not the best. There are at least two credit cards that offer high rewards on groceries.

First up is the Blue Cash Preferred® Card from American Express. Blue Cash Preferred pays 6% cash back on groceries, but the 6% is capped to $6,000 spending per year. Second, the American Express® Gold Card pays 4x points on groceries up to $25,000 in purchases per year.

The bottom line is that most people are probably better off with the Blue Cash Preferred® Card from American Express, even factoring in the annual fee. So 4% on groceries is not bad, but it’s also not the best.

3% on Restaurants and Takeout

3% on restaurants is pretty common. And for us, I would prefer the Chase Sapphire Reserve® because not only do you get 3x points, but when you use them for travel through Chase Travel(SM), you get a 50% bonus. So you’re effectively getting four and a half percent.

Having said all of that, the Verizon Visa’s combination of cash back is impressive. However, it’s only impressive if you are Verizon customer and use the rewards to buy products and services from Verizon.

2% on Verizon Purchases

Perhaps the best selling point of the card is the 2% reward rate on Verizon purchases. In theory, you won’t find a better deal because it’s a Verizon-branded credit card. That said, you can earn 2% cash back on other cards as well.

In addition, you have to ask just how much you spend at Verizon? If it’s say $100 a month, this 2% reward rate is worth just 2 Verizon Dollars a month. And that brings us to my biggest concern with this card.

Verizon Dollars

The rewards are not paid in cash or even a statement credit. They are paid in “Verizon Dollars.” What?!!

I want cash. I don’t want Verizon dollars. So what are Verizon Dollars? To answer that question, you have to dig into the credit card rewards program terms and conditions. First, we know they aren’t cash:

Verizon Dollars have no cash value and are issued for reward purposes only and cannot be purchased, sold, transferred, redeemed for cash or Verizon gift cards, or used for security deposits for Verizon Wireless Account or Verizon Fios account services.

So what can you use Verizon Dollars for? According to the FAQ, they can be used on the following:

• The payment of a Verizon Wireless bill
• The payment of a Verizon Fios bill (but only online)
• The purchase of a wireless device, including the use of Verizon Dollars toward the down payment or buyout of a device payment agreement.
• The payment of a remaining balance on a device payment agreement for a wireless device eligible for an annual upgrade.
• The purchase of an accessory
• Book travel, hotels & rental cars through the Verizon website or App
• Buy merchant gift cards through the Verizon website or App

If you can put Verizon Dollars to good use on products and services at Verizon, this card may be for you. For me, this rules out the card. I don’t want to earn Verizon Dollars with limited uses when I can earn equal or better rewards from other cards in cash or travel. So what are these better cards?

Compare Verizon Visa Card With Other Options

Several cards may be a better option:

• Chase Sapphire Reserve®–3x points on travel and restaurants redeemable for travel with a 50% bonus. The annual fee is $550.
• Chase Sapphire Preferred® Card–2x points on travel and restaurants redeemable for travel with a 25% bonus. The annual fee is $95.
• Prime Visa–5% cash back at Amazon and Whole Foods. No annual fee, but requires an Amazon Prime membership.
• Blue Cash Preferred® Card from American Express–6% cash back on groceries up to $6,000 in spend per year. The annual fee is $0 intro annual fee for the first year, then $95.
• Wells Fargo Active Cash® Card–2% cash back on all purchases and no annual fee.

Additional Terms, Conditions & Features

You must be a Verizon Wireless customer to get the card. Specifically, you must be an account owner or account manager with 12 phone lines or less on the account. In addition to no annual fee, there’s also no foreign transaction fees.

The interest rates are high, which is common with co-branded credit cards. If you plan to carry a balance from month to month, this card is not for you.

While I was pretty excited about this card at first glance, I think now it’s fair at best. You might use it if you’re a big Verizon spender and want the 2% back on Verizon purchases. But even then you have better alternatives with other cash back credit cards.

Verizon Visa Card Video

Below we recap the features fees, credit score requirements, and alternatives.