Why credit card rewards are targeting convenience spending

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Chase, Capital One, Barclays and others are offering credit cards that reward you for things like meal delivery, grocery delivery or ride-hailing services

If you’re spending a lot on convenience — whether in the form of grocery delivery, ride-hailing or meal delivery — your credit card wants to reward you for it, while encouraging you to spend more.• Chase announced in January that for a limited time, eligible card members can get free memberships to DoorDash’s subscription food delivery service, DashPass, valued at $9.99 a month.

Although it might seem as if credit cards are acting like your new best friend, experts say the rewards structures are designed to get you to use the cards more freely. Convenience, in other words, can come at a cost. Shevlin noted that to fully optimize some of these deals, consumers may need to update the card they have connected to the apps so that it’s the one that offers the highest rewards rate on that service.Morris said it’s also important to pay your bills in full each month to avoid accumulating debt and paying interest, which would cancel out the benefit of any rewards earned.

 

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