Benefits and Rewards of the Sam’s Club Credit Card

Sam’s Club is a membership-only retail warehouse club that is a division of Walmart Stores Inc. (WMT). Three types of Sam’s Club membership programs are available to the public: Sam’s Club, Sam’s Club Plus, and Sam’s Business.

All members of Sam’s Club can sign up for a credit card, whether they have a business or an individual account. Members can apply for a credit card in store or online. Personal information is required, and approval is dependent upon a credit check. Members can apply for several different types of credit cards, and the benefits and rewards that you will receive vary considerably among cards.

How a Sam’s Club Credit Card Works

Sam’s Club offers a total of five credit cards to its members: two for individual members and three for business customers. Rewards and benefits vary across the cards, but the basic principle is the same for each: All cards offer cash back when you use them for purchases at Sam’s Club, and some cards offer it when you use them elsewhere. You will need a good or excellent credit score to be approved for any of these cards.

The amount of cash back that you receive depends on not only the type of card that you have but also the category of purchase that you make on the card. Each type of card can be used at any Sam’s Club or Walmart location and can be accessed online. There is no annual fee, and the card can also be used as a membership card.

The annual percentage rate (APR) for these cards is quite high. The Sam’s Club credit card and the Sam’s Club Mastercard have an APR of 15.65% to 23.65%, depending on the applicant’s creditworthiness. This means that leaving an unpaid balance on these cards for a few months can quickly wipe out the savings that you’ll make on purchases.

You can make payments to your Sam’s Club credit card in various ways. You can pay via an online account, where you can also request a credit increase and manage your cards. Alternatively, you can call the number on the back of your card and make a payment over the phone.

Sam’s Club Credit Card Rewards and Benefits

The rewards and benefits offered by Sam’s Club credit cards vary depending on which account you have and whether you are an individual or a business customer.

Individual Cards

Sam’s Club offers two credit cards to individual customers: the Sam’s Club Credit Card and the Sam’s Club Mastercard. Signing up for either of these credit cards requires a Sam’s Club membership. There are three types of membership options. The most basic option is Sam’s Club for an annual fee of $45.

There are some similarities between the cards. Each offers a $30 statement credit when you open a new account and make a $30 purchase within the first 30 days of opening your account. This can help to offset the cost of membership. Both cards also offer:

• No annual fee
• Acceptance at all Sam’s Club and Walmart locations across the United States

In other ways, the cards differ significantly. The Sam’s Club Credit Card is designed to be used as a store card for purchases at Sam’s Club and Walmart. The Sam’s Club Mastercard can be used as a more general payment card and is accepted wherever Mastercard is. It also offers a range of extra benefits:

• 5% cash back on gas anywhere that Mastercard is accepted (for the first $6,000 a year, then 1% after)
• 3% cash back on Sam’s Club purchases for Plus Members (Club Members earn 1%)
• 3% cash back on dining and takeout
• 1% cash back on other purchases wherever Mastercard is accepted

The card also gives its users price protection up to 60 days and identity theft resolution services. The Mastercard credit cards are managed and serviced by Synchrony Financial (SYF).

Cardholders can get additional rewards and benefits by upgrading their membership to Sam’s Plus for an additional $100 per year. Sam’s Plus members get access to early shopping hours, the Extra Value Drug List, Optical Plus member benefits, add-on memberships, and an extra protection service plan. However, the biggest benefit is the Cash Rewards program, which gives members $10 for every $500 spent in qualifying purchases, up to $500 annually. These rewards can be used toward purchases or membership fees or redeemed for cash.

Business Cards

Sam’s Club also offers credit cards for businesses. Businesses can apply for these online using the Sam’s Club Business card, which allows up to eight cards for employees. Three types of cards are available for businesses: the Sam’s Club Business Credit Card, the Sam’s Club Business Mastercard, and the Sam’s Club Business Mastercard Plus.

The benefits offered by these cards are similar to the individual cards that we’ve detailed above. Each offers a $30 statement credit when you open a new account and make a $30 purchase within the first 30 days. Both cards also offer:

• No annual fee
• Acceptance at all Sam’s Club and Walmart locations across the United States

In other ways, the cards differ significantly. The Sam’s Club Business Mastercard Plus has the most benefits and is available to business members for a $100 annual fee. It also offers a range of extra benefits:

• 5% cash back on gas anywhere that Mastercard is accepted (for the first $6,000 a year, then 1% after)
• 3% cash back on Sam’s Club purchases for Plus Members (Club Members earn 1%)
• 3% cash back on dining and takeout
• 1% cash back on other purchases wherever Mastercard is accepted

The combined effect of these benefits for businesses is that Plus Members can earn up to 5% back on purchases at Sam’s Club if they use their business Mastercard: the 2% cash back that they earn for being a Plus Member, plus the 3% cash back that they earn by using their Plus Mastercard.

Who Benefits the Most from a Sam’s Club Card?

Sam’s Club credit cards can benefit anyone—or any business—making regular purchases at Sam’s Club. Any Sam’s Club member looking for a credit card to use in the store would benefit from using one of the Sam’s Club credit cards.

However, members would benefit more by specifically applying for one of the Sam’s Club Mastercard credit cards. The benefits of gas, dining, travel, and other purchases could result in a fair amount of cash back to the member when used. To maximize all available benefits, members should get both the Sam’s Club Mastercard and the Sam’s Plus membership.

That said, you should be wary of leaving unpaid balances on your Sam’s Club credit card—as with most credit cards, the interest imposed on these balances is relatively high. In other words, a Sam’s Club credit card is a good way of maximizing your cash back but not a good way to access credit to make a large purchase that you want to pay off over time.

Alternatives to Sam’s Club Credit Card

There are several alternatives to Sam’s Club credit cards. Costco Wholesale Corp. (COST) is the largest competitor to Sam’s Club. Costco offers its own credit card to its members, called the Costco Anywhere Visa Card by Citi. The card gives members 4% cash back on gas, 3% cash back on restaurants and travel, 2% cash back on all Costco purchases, and 1% cash back on all other purchases.

Another wholesale club chain is BJ’s Wholesale Club Inc. (BJ), which also offers credit cards to its members. The BJ’s Perks Elite card gives its members savings of 10 cents off per gallon on BJ’s gas, 5% cash back on most in-club purchases, 2% cash back on dining out and non-BJ’s gas, and 1% cash back on all other purchases.

The rewards offered by these cards are similar to those offered by a Sam’s Club credit card. Therefore, the choice among the cards will ultimately depend on which of these stores you visit most often and which carries the products that you need at the lowest price.

The Bottom Line

A Sam’s Club credit card is a good option for individuals and businesses making regular purchases at Sam’s Club, as it offers competitive cash-back rates. To get the most out of these cards, you should apply for Sam’s Club Plus membership and the corresponding Mastercard.

Be warned, however, that like many store cards, Sam’s Club credit cards are an expensive way to access long-term credit. As long as you pay off your account balance in full every month, these cards can save you money—but if you do not, then the high interest rates will quickly wipe out any savings you have made.