Put your holiday shopping on the card that pays the most at the store where you’ll shop most, such as the Prime Visa at Amazon for Prime members or the Target Circle Card at Target. Then pay the January statement in full, because a few months of interest cost more than the rewards earn.
Banks charged an average interest rate of 22.36% in August on card accounts that paid interest, the Federal Reserve reports. That works out to about 1.9% of the balance for each month it’s carried, more than the 1% to 1.5% most of these cards pay outside their bonus categories. Three months of interest at that rate, about 5.6% of the balance, cost more than even a 5% bonus earns. Paying in full is also what makes a store card’s discount worth taking.
Each card here pays extra where holiday spending goes, and some add purchase protection, which covers a new purchase against theft or damage for 90 to 120 days. The Discover it Cash Back’s rotating 5% categories this quarter are restaurants, entertainment, and utilities, so this year it pays 5% on dinners and outings, not gifts.
Cards for one retailer
Best for Amazon shoppers: Prime Visa
Prime members who buy gifts on Amazon earn 5% on them, and purchase protection covers each new item up to $500 against theft or damage for 120 days (90 in New York).
- What Sets It Apart: 5% for Prime members on Amazon, Whole Foods, and Chase Travel spending, with no fee for the card itself
- Welcome Offer: $150 Amazon gift card on approval
- Rewards: 5% back at Amazon, Whole Foods Market, and Chase Travel; 2% at gas stations, restaurants, and local transit; 1% on other purchases; rotating Prime Card Bonus offers of 10% or more on select Amazon items
- Features: Purchase protection and extended warranty
- Annual Fee: $0
- APR: 18.99% to 27.74% variable
- Cost: No foreign transaction fees; Prime membership needed for 5% ($139 a year or $14.99 a month for the standard plan)
- Pros: No annual card fee; rewards spendable at Amazon checkout as soon as the next day
- Cons: 5% rate requires Prime; 1% on purchases outside its categories; no 5% on Amazon Pay or international Amazon sites
For more information, read our full Prime Visa Review.
Best for Target shoppers: Target Circle™ Credit Card
Target shoppers get 5% off Black Friday sale prices in stores and online, and restaurant and travel gift cards bought there as presents get the 5% too, though Target GiftCards don’t.
- What Sets It Apart: 5% off most Target and Target.com purchases at checkout; free shipping on orders under $35; 30 extra days for returns
- Welcome Offer: $50 in Target Circle Rewards after $50 of qualifying purchases within 60 days of approval
- Rewards: 5% on top of Target Circle deals
- Features: Target Circle 360 for $49 a year instead of $99; 5% off restaurant and travel gift cards sold at Target
- Annual Fee: $0
- APR: 28.45% variable
- Pros: Discount comes off at the register, with nothing to redeem; no annual fee; free shipping on small orders
- Cons: Works only at Target; interest on a carried balance soon outweighs the discount; no discount on prescriptions, Target GiftCards, or prepaid cards
For more information, read our full Target Circle™ Credit Card Review.
Best for Walmart shoppers: OnePay CashRewards World Mastercard®
Walmart+ members earn 5% at Walmart in stores and online, and new cardholders who apply and are approved by December 31, 2026, earn 3% outside Walmart for their first 90 days.
- What Sets It Apart: Unlimited 5% back at Walmart with Walmart+, in stores, at Walmart gas stations, on Walmart.com, and in the Walmart app; 3% without Walmart+
- Welcome Offer: $35 at account opening plus 3% back outside Walmart for the first 90 days, on applications made by December 31, 2026
- Rewards: 5% at Walmart with Walmart+; 3% at Walmart without it; 1.5% on all other purchases; points worth 1 cent each
- Features: Points redeemed in the OnePay app as a statement credit or a OnePay Cash deposit; prequalification with no credit score impact
- Annual Fee: $0
- APR: 20.49% or 30.99% variable
- Cost: No foreign transaction fee
- Pros: No cap on 5%; 5% on the Walmart+ renewal fee when the card pays it
- Cons: 1.5% outside Walmart and from third-party sellers there; 5% requires Walmart+ ($98 a year on the annual plan); lower APR expected for only a limited number of applicants
For more information, read our full OnePay CashRewards World Mastercard® Review.
Cards that pay at many stores
Best for department stores: U.S. Bank Cash+® Visa Signature® Card
Department store and electronics shoppers who enroll in those two categories this quarter earn 5% on their first $2,000 combined, at stores such as Macy’s, Kohl’s, and Best Buy.
- What Sets It Apart: Two 5% categories you pick each quarter from 12, home utilities, cell phone providers, and ground transportation among them
- Welcome Offer: $200 bonus after $1,000 in purchases in the first 90 days
- Rewards: 5% on the first $2,000 a quarter in your two categories; 5% on prepaid travel booked in U.S. Bank’s Travel Center; 2% on grocery stores, restaurants, or gas and EV charging, whichever you pick; 1% on everything else
- Features: Category picks open 45 days before each quarter, with text or email reminders
- Annual Fee: $0
- Intro APR: 0% for 15 billing cycles on purchases and on balance transfers made in the first 60 days
- APR: 17.99% to 28.24% variable
- Cost: 5% balance transfer fee ($5 minimum); 3% foreign transaction fee
- Credit Needed: Good to excellent, as U.S. Bank says
- Pros: Up to $400 a year at 5%; 5% choices for monthly bills; 15 billing cycles at 0% on purchases
- Cons: 1% on everything until you choose each quarter’s categories; 1% outside your picks; cash back expires 36 months after you earn it
For more information, read our full U.S. Bank Cash+® Visa Signature® Card Review.
Best for online orders: Blue Cash Everyday® Card from American Express
Shoppers buying gifts from U.S. online retailers earn 3% on up to $6,000 a year, and purchase protection covers each eligible purchase up to $1,000 for 90 days.
- What Sets It Apart: 3% in three everyday categories that stay the same all year, with no annual fee
- Welcome Offer: Up to $200 back after $2,000 in purchases in the first 6 months; amount varies by applicant
- Rewards: 3% at U.S. supermarkets and on U.S. online retail purchases, each on the first $6,000 a year, then 1%; 3% at U.S. gas stations on the first $6,000 a year, then 1%; 1% on other purchases
- Features: Up to $7 a month in Disney+, Hulu, or ESPN streaming credits with enrollment; purchase protection; cash back usable at Amazon.com checkout
- Annual Fee: $0
- Intro APR: 0% for 15 months on purchases and balance transfers
- APR: 19.74% - 28.74% variable after the intro period
- Cost: 2.7% foreign transaction fee
- Pros: No annual fee; separate $6,000 cap per category; no minimum to redeem
- Cons: 1% outside the bonus categories; 2.7% foreign transaction fee; balance transfers only in the first 60 days
For more information, read our full Blue Cash Everyday® Card from American Express Review.
Best for BofA customers: Bank of America® Customized Cash Rewards Credit Card
Online shoppers can pick online shopping as its 3% category for November and December and switch back in January. New cardholders earn 6% on it the first year.
- What Sets It Apart: A 3% category you pick and can change once a month; BofA Rewards adds 10% to 75%, up to 5.25% in the category
- Welcome Offer: $200 bonus after $1,000 in purchases in the first 90 days; 6% in the category the first year
- Rewards: 3% in one category: gas and EV charging by default, or online shopping, dining, travel, drug stores, or home improvement; 2% at grocery stores and wholesale clubs; both on up to $2,500 combined a quarter, then 1%
- Features: Cash back in any amount; rewards don’t expire while the account is open
- Annual Fee: $0
- Intro APR: 0% for 15 billing cycles on purchases and on balance transfers made in the first 60 days
- APR: 17.74% to 27.74% variable
- Cost: Balance transfer fee 3% for the first 60 days, then 5%; 3% foreign transaction fee
- Pros: Phone, internet, cable, and streaming bills count as online shopping
- Cons: $2,500 quarterly cap shared with groceries and wholesale clubs; 1% past the cap; 3% foreign transaction fee
For more information, read our full Bank of America® Customized Cash Rewards Credit Card Review.
Best for holiday hosts: Chase Freedom Flex®
Holiday hosts earn 5% on up to $1,500 at grocery stores (not Walmart or Target) and on dining from Oct. 1 through Dec. 31, once they activate by Dec. 14.
- What Sets It Apart: Quarterly 5% bonus categories plus 3% at restaurants and drugstores, with no annual or foreign transaction fee
- Welcome Offer: $250 bonus after $500 in purchases in 3 months (limited time)
- Rewards: 5% on Chase Travel; 5% on up to $1,500 in quarterly categories plus 3% on dining and drugstores
- Features: Purchase protection and extended warranty
- Annual Fee: $0
- Intro APR: 0% for 15 months on purchases and balance transfers
- APR: 18.49% to 27.99% variable
- Cost: Balance transfer fee 3% (min. $5) for 60 days, then 5%
- Pros: Up to $75 a quarter from the categories; no foreign transaction fee; points don’t expire while the account is open
- Cons: 5% requires activation each quarter; $1,500 quarterly cap; 1% base rate
For more information, read our full Chase Freedom Flex® Review.
Holiday rewards come down to matching one card to the store that will get most of your holiday budget. Use it from Black Friday on, and set autopay for the full statement balance so January’s bill carries no interest.
For more cards that pay extra online all year, compare the best credit cards for online shopping.
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