The REI MasterCard (new for 2015 – this card used to be a Visa) is a great choice for people who like to shop at the high-end outdoor equipment/apparel retailer and want to earn cash back rewards on their purchases. It is available as a World MasterCard as well as a Platinum MasterCard. Applicants are approved for a specific card based upon their credit score and other financial factors. You must be an REI member to apply for the card (an REI lifetime membership is $20). The REI MasterCard is issued by USBank.
New card members are eligible to receive a $100 REI Gift Card simply by activating the card and making a purchase on it within 60 days of opening your account. There is no minimum amount you have to spend. Once you have made an eligible purchase, you will receive your gift card by mail. This process generally takes 6-8 weeks.
The REI MasterCard allows cardholders to earn cash back rewards in the following ways:
- 5% cash back on eligible purchases at all REI stores
- 2% cash back on eligible grocery purchases
- 1% cash back on all other eligible purchases made anywhere else
Note: Cash back rewards earned throughout the year are distributed annually along with your REI member refund.
In addition to the cash back rewards listed above, World MasterCard members receive these benefits:
- Emergency Card Replacement and Cash Advance
- Travel Assistance Services
- Trip Cancellation Service
- Lost Luggage Coverage
- Price Protection
Cardholders receive an annual REI member refund which typically amounts to 10% of your annual REI purchases. The 5%, 2% and 1% rewards accrue separately from the annual member refund which results in your earning a bigger Annual Dividend.
There is no introductory APR offered with the REI MasterCard. The APR for both purchases and balance transfers varies between 10.99% and 22.99% based on your creditworthiness at the time of approval. A balance transfer fee of $5 or 3% of the total amount of the transfer (whichever is greater) is applied to each balance transfer that posts to your account.
There is no annual fee for this card.
The Facts
Below we’ve broken down the specific details of the REI MasterCard to help you determine if it’s a good choice for you.
The Good:
New member gift card:
New account holders are eligible to receive a $100 REI gift card upon approval. You must activate your account and make at least one purchase within the first 60 days. There is no minimum spending amount required to qualify for this gift card. Balance transfers, interest charges, fees, or advances are not considered purchases. You will receive your gift card by mail approximately 6-8 weeks from the date of purchase. Existing and previous REI MasterCard holders are not eligible for this offer.
Easy to earn cash back rewards:
Card members receive 5% cash back rewards on all eligible net purchases made at REI stores. Returns and credits are deducted but full-priced and discount-priced items are both valid. Also included are REI gift cards, services, fees, and REI Adventures-invoiced trip payments.
Members receive 2% cash back on all eligible grocery purchases. To qualify, merchants must process transactions with the proper merchant code for grocery stores and supermarkets. Purchases made at Discount Warehouses and superstores such as Target and WalMart typically do not qualify. They will earn the basic 1% cash back.
Cardholders receive 1% cash back on all other net purchases made anywhere else. Balance transfers, advances, interest charges and fees, or transactions to certain pre-paid card products are not eligible.
Cardholders receive an annual REI member refund which typically amounts to 10% of your annual REI purchases. The 5%, 2% and 1% rewards accrue separately from the annual member refund which results in your earning a bigger Annual Dividend. Members receive this dividend payment annually in March.
World MasterCard benefits:
- Emergency Card Replacement and Cash Advance
- Travel Assistance Services
- Trip Cancellation Service
- Lost Luggage Coverage
- Price Protection
No annual fee:
There is no annual fee with the REI MasterCard.
The Bad:
No signup bonus:
New members do have the opportunity to earn a $100 REI gift card but there is no other cash back rewards bonus available (such as additional rewards tied to spending in the first few months).
No promotional APR:
There is no 0% introductory annual percentage rate offered with the REI Visa Card on either purchases or balance transfers. Your APR will vary between 10.99% and 22.99% based on your credit score and other financial factors at the time of approval.
May qualify for different MasterCard:
Applicants who apply for the REI World MasterCard and do not qualify may be approved for the REI Platinum MasterCard. An application for the World MasterCard automatically generates an application for the Platinum MasterCard. The terms and conditions for these cards are the same (APRs, fees, etc) but the World MasterCard delivers more benefits. Be certain you know the differences before accepting any card, if offered.
REI Membership Required:
You must be an REI member to apply for the card (an REI lifetime membership is $20).
The Ugly:
Cash back rewards dividend:
All cash back rewards go into your REI member fund when earned. The total amount is then reimbursed to you in the form of a dividend once a year (in March). Card members have no access to any cash back rewards earned throughout the year other than this dividend payment.
Benefits favor REI customers:
The cash back rewards program offered with this card benefits consumers who regularly shop at REI stores for their sporting/outdoor equipment and apparel. Purchases at REI earn 5% cash back and grocery purchases earn 2% cash back. All other purchases earn a weak 1%. If you don’t make a significant amount of purchases every year at REI, it will be difficult to maximize the benefits of this card.