Verizon Visa Card – Great Rewards, Limited Redemption Options

If you a Verizon customer, there is a new credit card to consider – Verizon Visa. The new card offers excellent cash rewards on grocery and gasoline purchases and dining.  But the rewards are in Verizon dollars and you cannot redeem it for cash.

Credit Card Application

You must be a Verizon post-paid customer to apply for the card.  Pre-paid customers cannot apply for the card.

The card is being issued by Synchrony Financial, a popular issuer of credit cards. You can apply for the card here.

Welcome Offer

Verizon Visa credit card does not offer sign up bonuses like other credit cards. Instead, you get a welcome offer of $100 that is paid out over 24 months (1/24th every month).

To get the welcome offer, you must pay your Verizon Wireless bill with your Verizon Visa card or Verizon Dollars.  You will receive a statement credit equal to 1/24 of $100 each month.

Rewards On Purchases

Here are the rewards for the Verizon Visa card.

  • 4% on grocery and gasoline purchases
  • 3% on dining out
  • 2% on purchases at Verizon stores
  • 1% on all other purchases

Rewards Redemption

Rewards are in the form of Verizon Dollars. They can be used to pay Verizon bills or buy Verizon products. They cannot be redeemed for cash.

Verizon Dollars do not expire as long as there is an activity in the account in 24 months. Activity is defined as earning or redeeming Verizon dollars.  This gives you many options – for example, you can accumulate Verizon Dollars for 24 months and save for a new phone.

If you cancel your Verizon Visa credit card, you have 90 days to use up your Verizon Dollars.

Additional Benefits

  • Credit card customers can get $10 off your bill by signing up for Verizon’s auto-pay program using this card.  This is the only credit card allowed in the auto-pay program that gives you $10 off.  Verizon customers know that auto-pay discount is reserved for debit card and bank transactions only.
  • In addition, you get 2 free TravelPass days per calendar year. This gives you unlimited talk, text, and data in 185 countries.  This usually costs $5 a day in Canada and Mexico and $10 a day elsewhere in the world.

Why does Verizon offer a credit card?

Verizon, like all wireless providers, has high customer churn.  Customers typically sign up with Verizon and within a year or two leave for another wireless provider.

Offering a credit card whose rewards can only be redeemed at Verizon limits customer churn and keeps them loyal to Verizon. Keeping an existing customer is cheaper for Verizon than acquiring new ones.

Bottom Line

4% rewards on grocery and gasoline purchases, and 3% rewards on dining are competitive with other cards.  The 1% cashback on other purchases is not that great but you can use this card for grocery, gasoline, and dining and still accumulate rewards.

The big drawback is that the rewards are in the form of Verizon Dollars and can only be redeemed at Verizon. Users will need to manage expenses so that you don’t have excess Verizon dollars that they can’t use. Still, some Verizon customers will find this card a good addition.

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