Wells Fargo Cash Back Visa Review

wells_fargo_cashback_visaThe Wells Fargo Cash Back Visa is a rewards credit card aimed at people who want to earn cash back rewards on everyday purchases. It currently offers a signup bonus to new members along with an introductory 0% APR on both purchases and balance transfers.

New account holders will earn 5% cash back for every dollar spent on eligible gas, grocery, and drug store net purchases during the first 6 months that your account is open. Net purchases are defined as the total amount of transactions minus any credits or returns. To qualify for the bonus cash rewards, all transactions must be submitted by retailers with the proper Visa merchant code for gas, grocery, and drug store purchases. Note: Purchases made at superstores such as WalMart and Target as well as discount warehouse stores such as Costco and Sam’s Club typically do not qualify for the bonus rewards categories. Transactions from these types of retailers will earn 1% cash back rewards.

The Wells Fargo Cash Back Visa currently offers new members an introductory 0% APR on purchases and balance transfers. This promotional rate is valid for the first 15 months that your account is open and active. After this time, the APR will be 12.15% to 25.99% (variable based on the Prime Rate) depending on your creditworthiness at the time of approval.

There is an introductory balance transfer fee of either $5 or 3% of the total amount of each balance transfer (whichever is greater) for the first 15 months. After this, the fee will be $5 or 5% for each balance transfer (again, whichever is greater). This fee is not waived during the promotional time period.

Excluding the promotional 5% cash back offer on gas, grocery, and drug store purchases available to new members for the first six months, all eligible transactions earn 1% in cash rewards.

There is no cap on the amount of cash back rewards you may earn. Rewards do not expire as long as your account remains open and in good standing.

Card members have access to the Wells Fargo Earn More Mall website which contains more than 10,000 local, national, and online retailers. Here you can find great deals that may boost your earnings potential.

The Wells Fargo Cash Back Visa offers card members flexible cash redemption options. These include:

  • Statement credit or check
  • Electronic deposit to a Wells Fargo checking or savings account
  • Travel
  • Merchandise
  • Gift cards

Cash rewards can be redeemed in $25 increments.

It should be noted that if your account becomes delinquent, the cash rewards associated with your account will not be available for redemption, transfer, or gifting. Any cash rewards that have not yet posted to your account will remain in a “Rewards Pending” status until your account is brought current or closed. If your account is closed for any reason, any cash rewards associated with your account will be forfeited.

Card members receive additional benefits through the Visa Signature network such as:

  • Luxury Hotel Collection – Benefits include best available room rate guarantee, room upgrades when available, VIP guest status, complimentary breakfast, free in-room internet, and a $25 food or beverage voucher.
  • Concierge Service – Enjoy complimentary 24/7 personal assistance service for help with anything you need – show tickets, restaurant reservations, and more.
  • Special CLEAR Offer – Speed through airport security lines with a six-month CLEAR trial membership and $60 off the regular annual membership rate when your account renews with your Visa Signature Card.
  • Emergency Cash and Card Replacement – Receive a replacement card or an emergency cash advance when needed.
  • Lost Luggage Reimbursement – Pay for your tickets with your Visa Signature card and receive reimbursement for any damage or losses. Limitations and exclusions apply.

Cardholders are charged a 3% foreign transaction fee on all purchases made on the card while traveling abroad.

The Wells Fargo Cash Back Visa comes with smart-chip technology for enhanced security.

There is no annual fee associated with this card.

The Facts

Below we have broken down the specific details of the Wells Fargo Cash Back Visa to help you determine if it’s a good choice for you.

The Good:

Signup bonus:

New members enjoy 5% cash back rewards on all eligible gas, grocery, and drug store net purchases made on the card during the first six months that your account is open. Net purchases are the total amount of the transactions minus any credits or returns. Cash back rewards may take 1-2 billing cycles to post to your account.

0% introductory APR:

This card is currently offering new members a 0% introductory APR on purchases and balance transfers for the first 15 months that your account is open. There is also an introductory balance transfer fee of either $5 or 3% of the total amount of each transfer (whichever is greater) valid for the first 15 months. After this time, the regular balance transfer fee of
$5 or 5% of the total transfer amount (whichever is greater) will be applied to all balance transfers. This fee is not waived during the promotional period.

Cash back rewards:

Discounting the signup bonus of 5% cash back on gas, grocery, and drug store purchases, members earn 1% cash back on all eligible purchases made on the card.

Easy to redeem:

Card members can redeem rewards in $25 increments. Redemption options include:

  • Statement credit or check
  • Electronic deposit to a Wells Fargo checking or savings account
  • Travel
  • Merchandise
  • Gift cards

Rewards do not expire:

Your cash back rewards do not expire as long as your account remains open and in good standing.

No cap on rewards:

There is no limit on the amount of cash back rewards you can accumulate through this rewards program.

Visa Signature Benefits:

Card members receive additional benefits through the Visa Signature network such as:

  • Luxury Hotel Collection
  • Concierge Service
  • Special CLEAR Offer
  • Emergency Cash and Card Replacement
  • Lost Luggage Reimbursement

Smart-chip technology:

This card comes with smart-chip technology which has broader acceptance internationally and offers better protection against fraudulent use.

No annual fee:

Members are not charged an annual fee with this card.

The Bad:

Varying APRs:

Once the 0% introductory APR on purchases and balance transfers expires (after 15 months), you could be looking at a relatively high APR. The range is 12.15% to 25.99% variable and tied to the Prime Rate. Your specific APR is determined at the time of approval and is based on information contained in your credit report and other personal information. The lower end of the range is good but the higher end is steep compared with other rewards cards.

Foreign transaction fees:

Members are charged a 3% foreign transaction fee on all purchases made while traveling outside of the U.S.

Not everyone will qualify:

Wells Fargo states (in the terms and conditions) that if you do not meet the qualifications for the Visa Signature card, you may be considered for a standard Visa which comes with different terms, benefits, and rewards. Some applicants will not qualify for any card.

The Ugly:

Fine print alert:

To qualify for the 5% bonus cash back rewards available to new members during the first six months, all gas, grocery, and drug store purchases must be submitted by retailers using an eligible merchant code. Superstores (WalMart, Target) and discount warehouses (Costco, Sam’s Club) do not fall into the eligible merchant category. Gas, grocery, and drug store purchases from retailers such as these will earn 1% cash back rewards.

Redemption values vary:

When you redeem your cash back for a statement credit, check, or electronic deposit the earnings rate will be the full 1%. However, when you redeem for merchandise or gift cards the redemption rate can be as little as .5% – not a great deal.

Cash rewards can be “frozen”:

The Wells Fargo cash rewards program states that if your account becomes delinquent, the cash rewards associated with your account will not be available to you until the delinquency is resolved. Any cash rewards that have not yet posted to your account will remain in a “Rewards Pending” status until your account is brought current or closed. In the event your account is closed, any cash rewards associated with your account will be forfeited.

In summary, the fact that there is no annual fee is a plus but after the signup bonus expires, purchases earn a meager 1% per dollar spent. The 0% introductory APR on purchases and balance transfers is a solid value especially for people who want to transfer a high-interest credit balance to a lower one. This specific offer gives you 15 months to pay down (or completely off) your balance without incurring finance charges.

If your credit is excellent you may qualify for a lower APR (starting from 12.15%) but others could be looking at an APR of 25.99% which is extremely high. The smart-chip technology is a benefit to international travelers but then you are charged a 3% foreign transaction fee on all purchases made outside of the U.S.

All in all, a relatively mediocre cash back rewards card.