Study: Credit Cards for Online Shopping 2014
Here are the best credit cards from our partners for online shopping
Read more about Shopping Addiction Statistics
To attract new customers, many credit cards offer special deals specifically for online shopping - and you could easily earn cash back and rewards just for buying things you’d be buying anyway.
Why not give to yourself while you’re giving to others? All you need to do is make sure you’re armed with the right credit cards before you start filling up your shopping cart.
We’ve done the hard work by zeroing in on the new offers from our partners that will give you the best payback. Of course, this money-saving idea assumes you’ll pay off your balance when it comes due, otherwise the late fees and interest charges negate the sweet perks.
Here were the guidelines we used in our study: Taking into account nationwide averages, we measured the perks of various cards based on an average American consumer (for the purposes of this article, we’ll call him Jake). Jake spends $700 shopping online from Thanksgiving through December.
Below are the credit cards from our partners that came out best for an online holiday shopper like Jake:
Chase Freedom comes in with Jake pocketing $107 by the time he's done. Assuming Jake was new to using the Chase Freedom card and he used only that card for all of his online shopping, he would earn:
For all the cards mentioned with 5% cash back categories, consumers must manually enroll in the 5% bonus spending categories, which change each quarter, but the process is quick and easy. All of the cards limit the amount of spending that can fall into the 5% bucket (earn up to $75 per quarter for Discover It and Chase Freedom and earn up to $300 per calendar year for Citi Dividend Platinum Select.)
For shoppers with an existing balance, take a look at the Discover It.
If he used this card, Jake would earn $35 as cash back (because he’d receive 5% cash back on that $700 spent on online shopping between October and December 2014).
Jake could make those earnings even higher if he shopped on ShopDiscover, Discover's online shopping portal. When Discover account holders go through ShopDiscover to make their online purchases from certain retailers, they earn 5% to 20% back. Plus, the Discover It offers price protection, extended warranty and return protection on eligible items.
This card is particularly helpful for people looking for a balance transfer deal. Discover It offers 0% intro APR on balance transfers for 18 months, after which the variable purchase APR comes into effect (currently 10.99% - 22.99%). You’ll pay a 3% fee for each balance transferred.
For travelers who plan to spend over $3,000 within the first 90 days, take a look at the Barclaycard Arrival Plus. It offers 40,000 bonus miles if you spend at least $3,000 on purchases within the first 90 days of opening your account – that's worth a $400 travel statement credit. Moreover, you earn 2x miles on all purchases. There is an $89 annual fee, which is waived for the first year.
For big spenders who plan to spend thousands of dollars, consider the Chase Sapphire Preferred. The card will give you 40,000 bonus points after you spend $3,000 on purchases within the first three months of opening your account. That alone is worth $500 toward travel rewards when you redeem through Chase Ultimate Rewards. There is a $95 annual fee, but that is waived the first year.
Editorial Note: Any opinions, analyses, reviews or recommendations expressed in this article are those of the author's alone, and have not been reviewed, approved or otherwised endorsed by any card issuer. This site may be compensated through the Advertiser's affiliate programs.
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