Starbucks Unveils Prepaid Alternative to Its Rewards Credit Card

Quick Tips - Starbucks Unveils Prepaid Alternative to Its Rewards Credit Card

Starbucks Unveils Prepaid Alternative to Its Rewards Credit Card

A few months ago, Starbucks announced it was launching a new rewards credit card that would keep you swimming in stars. Okay, for those who don’t speak Starbucks, that means the card offers a ton of free drink opportunities that made it attractive to coffee fiends everywhere. Unfortunately, that card came with some major caveats, not the least of which was the $49 annual fee. Cut to this week as Starbucks has another new card to present — and this one comes fee-free.

In partnership with Chase, Starbucks has just unveiled the Starbucks Rewards Visa Prepaid Card. That’s right — this isn’t a credit card, it’s a debit card. While it might not offer the same level of Starbucks savings as the regular Rewards Visa, there are some notable perks to this prepaid card that may actually be worth paying attention to.

First off, as mentioned, there’s no fee to use this prepaid card. Not only does that mean no annual fee (or monthly fee) but also means no per-use fee like some prepaid cards may charge. That said, unlike most debit cards and despite the Chase branding, you won’t be able to use your Starbucks Rewards Visa Prepaid Card to get cash at an ATM.

As for the big benefits, the first is that cardholders receive automatic Gold status at Starbucks. This means you can skip the 300-star requirement and get straight to earning free food and beverages. Being Gold will also make you eligible for various promotions like Starbucks Bingo, Double Stars Days, and the Starbucks Happy Hours that have been taking place over the past few weeks. On top of that, when you load your first $10 from the prepaid card to your Starbucks card, you’ll earn 125 bonus stars — equal to one free drink or item.

Like with the Starbucks Rewards Visa, the prepaid version also allows you to earn stars wherever you shop… although to a much lesser degree. With the prepaid card, you’ll earn one star for every $10 you spend outside of Starbucks. That means you’d have to spend $1,250 on your prepaid card just to obtain the stars necessary to nab a free beverage. Of course, you do still earn your two stars per dollar spent at Starbucks, which could help bring that insane ratio down considerably.

So is this new Starbucks Rewards Visa Prepaid Card worth it? In short, maybe. If you’re somehow not already a Starbucks Gold Cardholder but shop there with any frequency, getting automatic status is a great thing. And while the additional star earnings are pretty paltry, it’s at least something for those who may not have a proper rewards credit card. Plus, since this isn’t a credit card, there seems to be little harm in applying and holding the card even if you don’t end up using it all that often. With all that considered, I’d at least recommend this new prepaid card over the regular Starbucks Rewards Visa and would say it may be worth looking into as a way to subsidize your coffee habit (P.S. — you can find more info on the card and apply for it here).

Author

Kyle Burbank

Kyle is a freelance writer and author whose first book, "The E-Ticket Life" is now available on Amazon. In addition to his weekly "Money at 30" column on Dyer News, he is also the editorial director and a writer for the Disney fan site LaughingPlace.com and the founder of Money@30.com.

Other Articles by Kyle Burbank

How to Rebound From 3 Money Setback Scenarios

On this site, I talk a lot about money milestones and achieving various financial goals. From building up an emergency fund to saving for retirement, these are all worthwhile and important topics that can make a huge difference in one’s fiscal life. However, I recently realized that, while I’ve spoken...

Robinhood Crypto Now Lets You Trade Litecoin and Bitcoin Cash

Earlier this year, the fee-free stock trading app Robinhood announced it was getting into the world of cryptocurrency. Robinhood Crypto started rolling out to users in certain states with the ability to buy and sell both Bitcoin and Ethereum while also being able to monitor the price of other coins...

Penny Hoarder Introduces Work-From-Home Jobs Portal 2

Thanks to blessings like faster Internet speeds, cloud computing, a bevy of team communication platforms, and other technologies, the need to report to a physical office building is diminishing for a number of workers around the world. Moreover, whether they just want to skip the commute or have desires to...

Comments

Since its free its a good deal. But if it comes with a charge I’ll think about it. Works great for those who are big starbucks fans though.

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *