Later this year, the card will start earning the following rewards:
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4% back in rewards on dining purchases, including takeout (increased from 3% back).
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4% back in rewards on phone and accessory purchases paid in full from Verizon (up from 2% back).
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1% back in rewards on your monthly Verizon bill (decreased from 2% back).
Verizon anticipates these changes to take effect between August and October 2024. The card, issued by Synchrony Bank, will still earn 4% back on grocery stores and gas, and 1% back on all other purchases. The discount per line or account remains unchanged when enrolling the Verizon Visa® Card in autopay for your monthly Verizon bill.
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A subtle devaluation
The reduced rewards rate on your monthly Verizon bill is a sneaky devaluation, as the new 1% rate covers devices you purchase through installment payments on your monthly bill, which currently earn 2% back. With the change, you will need to purchase your device or accessories from Verizon and pay in full to earn 4% back.
Is it a good deal?
If it’s the only card in your wallet, the adjustments to the Verizon Visa® Card could potentially work in your favor. With the increased rewards on dining, you’re receiving 4x back in each of the “big three” spending categories: restaurants, groceries, and gas. Moreover, the card will still provide a discount of up to $10 per line each month if you’re enrolled in autopay (up to a maximum of 12 lines). Depending on the size of your monthly bill, that type of discount is likely more valuable than the bonus rewards you would earn for paying that bill.
However, taking advantage of that discount means you’re stuck with the card’s new 1% rate on your monthly Verizon bill. This is a poor return on spending for a card that’s co-branded with the company’s name. Additionally, keep in mind that rewards are issued as “Verizon Dollars,” meaning they can only be redeemed within the Verizon ecosystem and not for a statement credit or cash back. Despite the fact that you’re already paying for cell service each month, you’ll always be able to redeem those rewards. Nevertheless, it’s not as flexible as cash back.
Consider, for instance, the Wells Fargo Active Cash® Card, which provides up to $600 in coverage if your cell phone is stolen or damaged, on up to two claims per year, with a $25 deductible. Simply pay your monthly cell phone bill with your card to qualify. Furthermore, it earns an unlimited 2% cash back on all eligible purchases. The rewards never expire and can be redeemed in various ways, including as a statement credit, direct deposit, or gift cards.