No. of Recommendations: 1
Today I was at Sam's Club, and saw their promotion for a Sam's Club MasterCard. The large print promises 5% cash back on gas, 3% on dining and travel, and 1% on all other purchases. On the face of it, this is better than Discover or Fidelity Amex for gas and restaurants, and as good as Citi MasterCard for everything else. I sat down to read the terms and decide whether I wanted to jump for the higher rewards.

Stuff that jumps out at me from the terms:

The underlying issuer is Synchrony Bank. I was not familiar with that name, but my good friend Google tells me this is the former GE Capital Bank.

5% on gas is limited to $6,000 of purchases per calendar year. This is far more than I will spend in a year on gas.

5% on gas and 3% on restaurants and travel excludes purchases at warehouse clubs other than Sam's. You do get 5% on gas bought at Sam's Club.<?I>

I've been getting similar offers from other entities other than Sam's Club. AAA had a similar offer. I wouldn't want to be limited to gas bought only at Sam's Club. I have not read the small print yet on the offers I have sitting on my desk at home but the first thing I would look at is the 5% on the first $6000 in purchases per calendar year. I would make sure that it is the first %6000 in gasoline purchases, not all purchases. I would be concerned that you could go out and buy $6000 in furniture and then the next time you fill up with gas, you'll find you are no longer getting 5% back on gasoline.

PSU
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