Verizon just launched one of the most rewarding no-annual-fee cards — 4 things you need to know

Jun 22, 2020

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Earlier this year, Verizon previewed a credit card in partnership with Synchrony Bank. While the world has drastically changed since that January announcement, Verizon surveyed existing customers to determine if now is still the right time to release a consumer card product.

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Today, Verizon made it official with the release of the Verizon Visa Card. The card is targeted exclusively to existing Verizon wireless customers as a way to save on their bill and use rewards towards devices and accessories.

Frank Boulben, senior vice president of consumer marketing and products at Verizon said,

“We created the Verizon Visa Card with our customers in mind, making it the only credit card in the world designed specifically to put Verizon customers first and give them more value, more ways to save and some of the best rewards in the industry for the things they purchase every day.”

Photo courtesy of Verizon
Photo courtesy of Verizon

1. Earning Verizon Dollars

The no-annual-fee Verizon Visa Card earns Verizon Dollars, redeemable for anything Verizon ($1 USD = $1 Verizon Dollar). There are no caps to earning and no expiration dates.

With Verizon Dollars, you’re tied to redeeming rewards for Verizon-related products and services only, but if you’re an existing customer, this seems like easy statement credit towards your phone bill.

Related reading: Best cards to pay for your cell phone bill

2. Big category bonuses

These are the impressive earning rates for the Verizon credit card:

  • 4% back on gas and groceries
  • 3% back on dining
  • 2% back on Verizon purchases
  • 1% back on everything else

As mentioned, instead of actual cash back, you’ll receive Verizon Dollars. For instance, you’ll get four “cents” back per dollar spent on gas and groceries, but those cents can only be redeemed towards Verizon purchases and bills.

Related reading: Best cards for extended warranty 

3. Card perks for Verizon customers

New cardholders will receive up to $100 in wireless bill credits over 24 consecutive months for monthly bill payments. The card will be available on all the mobile wallets (Apple Pay, Google Pay, etc.) as well as integrated wallet payment within the Verizon app.

Additionally, the Verizon Visa card will be the only card eligible for the Auto Pay discount. Typically, the Auto Pay reduction of up to $10 per month only applies to a debit card or a bank account as your automatic payment method.

Finally, Verizon notes that in addition to no annual fee, there are also no foreign transaction fees and no cap to how many Verizon Dollars that you can earn.

Related reading: Amex cardholders get COVID-19 temporary benefits, including wireless phone bill reimbursement on select cards 

4. Early access and card launch

The Verizon Visa Card is officially launching on Friday, June 26, and can be applied for in-store, on the phone with customer service, online or through the My Verizon app.

However, now through June 25, Verizon is giving qualifying customers early access. You’ll also earn extra Verizon Dollars for applying early — one million Verizon Dollars is being split equally with anyone that applies early, up to $1,000 each.

Bottom line

Of course, this card isn’t for everyone. For starters, you have to be a Verizon wireless customer to even consider getting this card.

However, the category bonuses on the Verizon Visa are what makes this card stand out. 4% back on both gas and groceries are about as good as it gets for a no-annual-fee card, especially when coupled with 3% back on dining. While some cards earn up to 5% back on a specific category, the combination of categories is what makes this card pretty stellar.

Related reading: The best no-annual-fee credit cards for 2020

Verizon is the latest company to enter the world of personal finance as they attempt to lock customers into their ecosystem. Recently, we’ve seen a credit card from Apple, a mobile banking service from T-Mobile, and a soon-to-come card product from SoFi.

Featured photo courtesy of Verizon. 

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