Posted by Chuck on June 11, 2018
Checking Accounts

Published on June 11th, 2018 | by Chuck

107

Chase and Starbucks Launch a Prepaid Reloadable Card with No Fees

Chase and Starbucks have finally launched a prepaid Visa product which was discussed two years ago. This comes on the heels of the launch of the Chase Starbucks Visa card back in February.

Overview

Direct Signup Link | Press Release | Terms (pdf)

The Starbucks Rewards Visa prepaid card is issued by Chase and can be reloaded online with a Chase bank account, Liquid account, or with a debit card (not clear if it has to be a Chase debit card). The terms state clearly that cash reload is not available on the prepaid card, thus negating any manufactures spend angle here.

The Starbucks prepaid card does not have a bill pay function and does not have access to Zelle, nor does it have ATM access. It does come with a PIN.

Similar to the Chase Starbucks Visa credit card, the prepaid product also earns Stars wherever it’s used. ‘Stars’ are Starbucks rewards currency which give you any free Starbucks item after accumulating 125 stars. That will usually be a value of $3 – $10.

Ongoing Earn

  • Prepaid cardholders get instant Gold status on the Starbucks loyalty program which typically would take 300 stars ($150 in Starbucks spend) to reach.
  • Earn 1 star per $10 spent everywhere with the prepaid card (free item after $1,250 in spend)
  • No special earn on Starbucks purchases: you’ll get the regular 2 stars per $1 that all Starbucks members get when paying with their Starbucks card or app, and you’ll get the regular bonus 1 star per $10 as does all spend.

Signup Bonus

  • Get 125 Stars (one free item) after you reload $10 or more with your Starbucks Rewards Visa Prepaid Card to your Registered Starbucks Card.

And, yup, it comes with the 24 month limitation 🙂 : This offer is not available to current cardholders or previous cardholder of this prepaid card who received the new cardholder bonus for this prepaid card within the last 24 months.

Fees

  • $0 signup fee
  • $0 annual/monthly fee
  • $0 reload fee
  • $0 fee per swipe
  • $0 inactivity fee
  • $0 customer service fee
  • $5 fee for a rush card replacement
  • 3% foreign transaction fee
  • $75 legal processing fee, which would be triggered if the bank was required to hold or pay out funds from the account as a result of a legal action.

Final Thoughts

For someone who can not get a credit card for whatever reason, this prepaid card can be mildly rewarding. It’s not much of alternative to the no-fee Bluebird/Serve/Redcard line from American Express which are fantastic products for the underbanked since this Starbucks prepaid requires having a bank or debit card to load. Plus, it does not offer bill pay and ATM access. The Starbucks prepaid card is better than Chase Liquid prepaid card which comes with $4.95 monthly fee.

$1,250 in spend to get 1 free item isn’t much. Most items cost around $4 which would amount around 1/3 of 1%. It would be almost impossible to get a 1% value. For our readers who have credit cards, I can’t find any use for this prepaid card. Maybe it could help rack up debit card purchase requirements, but realize there is a $25 debit card load minimum, and remember that you’ll have to spend down the balance somehow. If anyone finds a usefullness for this, please let us know.

Readers note it could be interesting for racking up ‘debit card’ spend. And also for racking up free drinks by using the card at places who only accept debit card.

The Chase Starbucks credit card which released in February is better than the prepaid product, as expected. It earns 1 star per $4, two and a half times the earn rate of the prepaid card, though overall it isn’t too interesting either. Read our review of the Starbucks credit card here.

RelatedStarbucks vs. Dunkin’ Donuts: Which Has a Better Rewards Program?



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The Value Traveler

It just came out hehe how can it be subject to 5/24?

Mikey
Mikey

True, no one approved should be denied the bonus due to receiving the bonus previously within 24 months. The more serious implication is the possibility that there may be 5/24 risks as well. So you could actually be denied for this card, or, conversely, it can affect your ability to be approved for other CHASE cards depending on your current 5/24 status.

docfan
docfan

This isn’t a credit card, so probably won’t be affected by 5/24. There’s basically no risk to Chase since you have to prepay.

Lrdx
Lrdx

Don’t confuse 5/24 with “bonus not available if you had this card within 24 months”

azpv
azpv

Just curious, you say 125 stars is usually a value of $3 – $10. What one item costs $10 at Starbucks?

calwatch
calwatch

You could load up a venti Frappucino or espresso drink with a bunch of add ons and extra shots. People have made $20 drinks but the results are pretty disgusting. I tend to value stars at a nickel each which makes it easy, since $6.25 is the fair market value price of one of their meal boxes (which usually retail for $8.95, and are the same quality as those you can find in a supermarket).

Max
Max

Oh man I’ve had fun with this in my college days. A Nonople Shot (9 Shot) Venti Macchiato would run $17.25

Mikey
Mikey

It’s easy to create a drink with extra shots, flavorings etc that exceeds $10.

Chucks
Chucks

Sandwich perhaps?

azpv
azpv

Thank you for all the good answers!

RD
RD

I usually get a free $15 drink with my stars when I work graveyard shifts. Venti with 10 shots of espresso and extra flavorings to help mask the bitterness. Doesn’t taste good but it keeps me up for 12 hours.

Justin
Justin

If you can reload this with debit gift cards, it has good value because a lot of places including many Walmarts will not allow money order purchases with debit card unless it has your name on it.

Rye
Rye

Yes, need more details on how to reload and where

calwatch
calwatch

It says you can only load online and I could see a velocity limit similar to what the Visa Buxx accounts had. If you could load at Starbucks, even only with cash or debit and not credit, that would be tremendous.

Superchurn
Superchurn

this is an intriguing angle indeed

docfan
docfan

Interesting, yes, but if you’re heavily invested in UR I would recommend against this.

Don’t shit where you eat.

Chucks
Chucks

Right, you’re suggesting this can be unloaded for MO? It’s very interesting, worth testing.

Superchurn
Superchurn

if it can, that would make my liquidation much easier

Justin
Justin

I was about to apply but didn’t see if this has a hard pull or not?

LMD
LMD

+1

CJ
CJ

Chase confirmed that there is No hard pull for this card.
Side note – I actually responded to a general DoC tweet about this card and asked in my tweet “any data on if applying for the Starbucks prepaid card is hard or soft pull?” DoC responded “I don’t think there’s a hard pull”. A few minutes after that, Starbucks tweeted me that @ChaseSupport can answer that for you, and 30 min after that Chase tweeted me to confirm that there is no hard pull. Really just an fyi that Starbucks was somehow following our tweets even though neither DoC or I “@” them in our tweets.

MoreSun
MoreSun

Subject to 5/24 ROFL. And I thought the weirdest news today was the International House of burgers!

docfan
docfan

Not the 5/24 rule. The 24 month limitation on receiving sign up bonuses.

MoreSun
MoreSun

Ah, reading too fast! Slightly less entertaining now.

Stryker
Stryker

Can I load $1,250 on the Starbucks card using any bank’s debit card, then go to Walmart, buy a MoneyOrder for $1250 and earn 125 stars (Free Drink !!!) ?

I’m a big Starbucks drinker. If this works, this avenue will save me $200 a month that I currently spend on Starbucks coffee purchases.

Gadget
Gadget

Will it offer a 5% savings account to grab up all the Insight customers? I know, it would only pay about .005% interest since it is Chase.

Dylan
Dylan

I’m admittedly tempted by the insta-gold status; I’ve seen previous Starbucks promotions that offer insta-gold, but other than that I’m not sure I’d ever get to gold with organic spending at Starbucks.

JL
JL

it’s actually very easy to get 300 stars between the promotions they have. frequently see 3 drinks get a bonus of 100 or 150 stars. so you never actually have to spend $150 to get gold.

Dylan
Dylan

Good to know! Are such promos advertised through the Starbucks app?

Mauddib6
Mauddib6

Yes, they are in the app and I get email notifications as I don’t use the app except for free items. I also collect the stars on the bags you buy at the grocery store. Those can add up to enough for gold every year alone for my wife and I.

Adrien Agreste
Adrien Agreste

Can be reloaded, presumably online, with a debit card you say.

Hummm…

Gonna sign up during my lunch break. And let’s just say, if I don’t reply to this comment in a month…you all should run to get one as well.

#BeTheDPYouWantToBe

Li
Li

It’s one month already! I will try it. hahaha.

azpv
azpv

Looks like we all should run over and sign up

FindingMyPossible
FindingMyPossible

I just got one. I haven’t found a useful debit card that can be used to load it yet.

azpv
azpv

Are people doing this offer for the free drink and gold status? What is the appeal?

Ewejay
Ewejay

Is this working for people? I’ve tried multiple debits and none work for initial load.

Chaser123
Chaser123

did not work with a Staples Visa Gift Card. It doesnt even verify if its valid. i am guessing the bin is blocked.

azpv
azpv

I can’t get it to work either. I tried using my Memory Bank Debit Card and one other one. I can’t get the initial load to work. I get the message: We weren’t able to add money from this card.
Please update your information or choose a different card.

Lei
Lei

tried vgc, does not work on initial load

colonelheero
colonelheero

Do you still earn the normal 2 stars at starbucks if you use this card directly? The site is pretty unclear on this. It just say “Add that to the 2 Stars per $1 you already get when you pay with your registered Starbucks Card or your registered Starbucks Card on your App to earn food or drink Rewards just for buying what you love.” I was thinking you could just replace your starbucks card with this, but seems that they still expect you to load the starbucks card with this debit card…

Bobby
Bobby

Could you not load with $2000 and then cash out for 2 mo which would only cost $1.76?

dmlin
dmlin

tried tons of cards also but none of them worked, even for non vgc/mgc. I assume this product is still under development and has not fully supported the debit card reload feature.

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