Starbucks releases new credit card, but won't be bringing it to Canada

Starbucks and Chase have partnered to launch a new rewards credit card with a truly competitive return rate. But, sadly for Canadians, the card is only available in the U.S.

A Starbucks spokesperson told LowestRates.ca on Friday that “there are no plans at this time” to bring the card up north.

Unfortunately, a lot of branded cards offered in the U.S. don’t make their way up to Canada. Chalk it up to a smaller, less competitive market.

The Starbucks Rewards Visa Card can be used outside of the U.S., though. In fact, it can be used anywhere in the world where Visa is typically accepted, even outside of Starbucks locations — and every purchase helps cardholders accrue points that they can later redeem at participating Starbucks.

The return rate is a good one. Every US$62.50 that cardholders spend will earn them 125 points, and every 125 points can be redeemed in the form of one Starbucks beverage or food item. If the average price of a Starbucks purchase is about US$4, that puts the return rate in the neighbourhood of 7%.

That’s a higher rate than those offered by some of the most competitive rewards credit cards on the market. The Scotiabank Momentum Visa Infinite card offers up to 4% cash back on certain purchases after a 5% introductory rate. Meanwhile, the SimplyCash Card from American Express offers only a 1.25% return rate after an introductory 5% rate in your first six months.

Both of these cards do have one advantage over Starbucks’ new offer: they offer cash back that can be used at a range of retail locations. Starbucks’ points can only be redeemed at, well, Starbucks.

But, if you have a Starbucks habit, buying into the Starbucks Rewards Program will save you money — especially if you use the new card.

There is an annual fee, however. At $49, it’s pricier than say, the SimplyCash Card (which is fee-free) but cheaper than the Scotiabank Momentum Visa Infinite Card, which costs $99 annually. But, again, Starbucks’ rewards rate is higher.