1Recently, Starbucks announced the debut of its branded credit card. The Starbucks Rewards Visa Card comes from JPMorgan Chase and offers various perks to cardholders. Starbucks announced its intention to release a branded credit card months ago. Companies like Uber have shown the viability of such credit cards in the past couple years. For Starbucks, the card may help increase revenues moving forward.
What Does The Card Do For Cardholders, Though?
For cardholders, the Starbucks Rewards Visa Card offers free food and drinks from Starbucks locations. Members are automatically enrolled in Starbucks Rewards and upgraded to Gold Status after approval. They’ll then receive Stars every time they make a purchase, regardless of which retailer that purchase occurs at. Unsurprisingly, purchases through Starbucks come with a better Star accrual rate compared to other retailers.
Every Starbucks transaction is awarded 1 Gold Star per $3.00 spent. Other transactions award 1 Gold Star per $4.00 spent instead. Fortunately, the card comes with other perks like 8 free drinks throughout the calendar year and more. A $49 annual fee applies to the card as well. Perhaps only the most dedicated Starbucks patrons should consider this rewards credit card. Said patrons stand to earn a lot of free food and drinks, though.
It remains to be seen whether this rewards Visa can turn things around for Starbucks. The company still pulls in tons of revenue per year. In recent years, though, that revenue growth has stalled and shrunken without many signs of future improvement. A rewards credit card for diehard Starbucks fans may help those struggling numbers.