New Instacart credit card: is it worth it?

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Link: Apply now for the Instacart Mastercard®

Chase just launched the Instacart Mastercard®, which is an intriguing card with no annual fee from the grocery delivery service. Although I don’t think it’s for everyone, it’s at least worth being aware of. Let’s go over some of the important details of the card.

Instacart Mastercard no annual fee

Let’s start with a huge advantage of the Instacart Mastercard, which is that it has no annual fee. This will be a big draw for many, as you can’t beat a card with no annual fee, assuming the card adds value to your wallet.

Instacart Mastercard welcome bonus

The Instacart Mastercard offers a pretty solid welcome bonus considering that there is no spending requirement to earn it, but rather it is awarded upon approval. You can receive:

  • $100 Instacart credit; the first 10,000 people who apply by August 4, 2022 will receive $200 Instacart credit
  • One free year of Instacart+ membership, which will automatically renew to an annual subscription for $99 per year after the first year (though you can cancel at any time)

With Instacart+, you get free shipping on most orders over $35, and you also get reduced service fees. If you frequently order groceries through Instacart, membership is a no-brainer.

That’s a decent bonus for a card with no annual fee. However, keep in mind that this is a Chase card and the standard application rules apply, including the 5/24 rule. There are other Chase cards with much more generous bonuses.

Instacart Mastercard Rewards Structure

The Instacart Mastercard is a cash back credit card, with the following rewards structure:

  • Earn 5% Cash Back On & Instacart App Purchases
  • Earn 5% cash back on travel purchased through the Chase Travel Portal, including flights, hotels, and more.
  • Earn 2% cash back on restaurants, gas stations and select streaming services
  • Earn 1% cash back on all other purchases

The card also has no foreign transaction fees, making it a great card for purchases abroad. Note that this is a “real” cash back card, meaning you can redeem your rewards for direct deposit or statement credit with no minimum to redeem.

The way I see the reward structure:

  • 5% cash back on Instacart purchases is the main reason you would want to consider this card, if you are a frequent Instacart customer
  • The 5% cash back on travel purchased through the Chase Travel Portal is quite restrictive, and incidentally the Chase Freedom Unlimited® (review) offers the same rewards on such purchases, also has no annual fee and is more complete. map
  • While it’s nice that there are restaurant and gas station bonus categories, there are other more rewarding cards in these two categories.
  • 1% cash back on everyday spending is not competitive as there are much better cards for everyday spending

Is the Instacart Mastercard worth it?

It’s always cool to see something new launch of co-branded credit cards, although personally I find it hard to get excited about the Instacart Mastercard. On the plus side, the card has no annual fee and no foreign transaction fees, has a pretty decent welcome bonus (with no spending requirement) and could be rewarding for high spenders with Instacart, being given 5% cash back.

At the same time, I feel like there are missed opportunities to make this a complete map that people will want to spend a lot on. How about adding an Instacart+ subscription on an ongoing basis if you spend a certain amount each year? How about offering high rewards if you trade for Instacart?

I think the other major consideration is that it’s a Chase card, and Chase has so many amazing cards that I’d rather ask for, in terms of benefits, welcome bonuses, return on spend, etc. . For personal cards that could range from the free annual Chase Freedom FlexSM $95 annual fee credit card (revision) Chase Sapphire Preferred® Card (revision). For business cards that can range from the Ink Business Unlimited® credit card with no annual fee (review) to the Ink Business Preferred® credit card at $95 annual fee (review).

At the end of the line

The Instacart Mastercard has been launched. The card with no annual fee offers a welcome bonus upon approval and offers 5% cash back with Instacart. Additionally, the card has no foreign transaction fees.

I could see this card making sense for some consumers, but I think there are more comprehensive cards out there, and I wouldn’t use a valuable Chase credit card “slot” for that.

What do you think of the new Instacart Mastercard?

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