Comparison of Credit Cards for Dining Purchases

Dining out is also a significant expense for many Chinese Americans, beyond groceries. Especially for people who eat out often or rarely cook at home, it makes sense to keep a credit card long term that offers strong rewards on restaurant spending. Today, let’s take a look at some common U.S. credit cards that earn 3%+ back on dining.

Citi Strata Elite (up to 7.8%)

Citi Strata Elite is a credit card with a $595 annual fee. It earns 3x points on dining and takeout, and restaurant purchases can earn as much as 6x during designated hours on Fridays and Saturdays. Although the annual fee is high, it comes with a $300 hotel credit, a $200 merchant credit, plus Priority Pass and rideshare credits, which can largely offset the annual fee. So if you spend a lot on dining, especially on Fridays and Saturdays, this card is worth considering. Valuing TYP at 1.3c/p, dining can be worth up to 7.8% back, which is an exceptionally high return. TYP can now be transferred to AA miles, which greatly increases their usefulness.

Citi Prestige (6.5%)

Citi Prestige is a credit card with a $495 annual fee that earns 5x ThankYou Points on restaurant purchases. Valuing ThankYou Points at 1.3 cents per point, that works out to 6.5% back on dining, which is an excellent return. ThankYou Points can be transferred to programs such as Singapore Airlines and Avianca, which can be useful for Star Alliance award flights. ThankYou Points can also be redeemed through Citi Travel for flights at 1.25 cents per point in value (requires holding Citi Premier). In addition, this card earns 5x on airfare and third-party booking sites (Priceline, Orbitz), 3x on hotel bookings and cruise purchases, and 1x ThankYou Points on everything else. The card also offers a $250 annual travel credit that is automatically applied after eligible travel purchases, effectively reducing the annual fee to $245. Another major feature is the fourth-night-free hotel benefit through Citi Travel when booking with points or cash: book three nights and get the fourth night free, up to 4 times per year, effectively making any hotel stay 25% off. The card also includes Priority Pass lounge access with entry for the cardholder plus two guests, along with solid Trip Protect benefits. If you use this purely as a dining card, it’s a bit of overkill; it’s best for people who can also take advantage of its travel benefits.

This card is currently unavailable for new applications and can only be obtained via product change.

AMEX Gold (6.4%)

AMEX Gold is a charge card with a $325 annual fee. It earns 4 Membership Rewards points (MR) per $1 spent at restaurants. MR cannot be directly redeemed for cash, but they can be used through AMEX Travel to book flights or hotels at a value of 1:1. The best use of MR is usually transferring to airline miles for domestic U.S. flights or international flights between the U.S. and China, especially business class, where the value can be very high. We generally value MR at about 100 points = $1.6. So 4x MR on dining is equivalent to about 6.4% back. In addition, this card earns 4x at supermarkets and 3x on airfare. Overall, it’s a very good card to keep long term. While the annual fee may look intimidating, the card offers $300 in various annual credits, and if you use them all, they can offset a large portion of the fee.

Compared with the other cards listed here, this one not only offers an excellent 6.4% equivalent return on dining, but also very strong rewards in other categories. If you can make good use of AMEX credits and AMEX Offer and get enough value to offset the annual fee, this is absolutely one of the best dining cards available. It’s also a metal card, with two color options available (gold and rose gold), so it definitely looks impressive when you pull it out to pay at a restaurant. That said, some smaller restaurants do not accept AMEX, so it’s still a good idea to carry a backup card.

Citi Custom Cash (5%)

Citi Custom Cash is a no-annual-fee credit card. As long as dining is your highest spending category each month, you can earn 5% back. However, only the first $500 each month earns 5%. This card also earns ThankYou Points, and valuing them at 1.2 cents each, that’s equivalent to 6% back. However, to unlock higher value from ThankYou Points, you need to also hold a premium card such as Citi Premier, Prestige, or Strata Elite.

AMEX Green (4.8%)

AMEX Green is a charge card with a $150 annual fee. It earns 3 Membership Rewards points (MR) per $1 spent at restaurants. MR cannot be directly redeemed for cash, but they can be used through AMEX Travel to purchase flights or hotels at a value of 1:1. The best use of MR is transferring to airline miles for domestic U.S. flights or international flights between the U.S. and China, especially business class, where the value can be very high. MR are generally valued at about 100 points = $1.6. So 3x MR on dining is equivalent to 4.8% back. In addition, this card earns 4x on travel purchases, including airfare, hotels, and transit, making it a very solid long-term travel card. AMEX Offers on this card can also save you a good amount of money each year.

That said, the $150 annual fee is a bit high, so it’s not recommended if your only goal is restaurant spending.

Chase Sapphire Preferred (4.8%)

Chase Sapphire Preferred is a credit card with a $95 annual fee that earns 3x Ultimate Rewards (UR) points on dining. Ultimate Rewards can be redeemed for cash at 1:1, redeemed through Chase Travel at 1:1.25, or transferred to airline miles and hotel points. Transferring to UA can work well for economy flights between the U.S. and China or domestic U.S. flights, while transferring to BA can be useful for some domestic AA flights. On the hotel side, Hyatt generally offers the highest redemption value. So we usually value UR a bit higher than cash, at about 1.6 cents per point (100 points = $1.6). That means 3x on dining is equivalent to 4.8% back. In addition, this card earns 3x UR on all travel purchases and has no foreign transaction fee. It also comes with a nice $50 annual hotel credit.

If you really care about annual fees and don’t currently need transfer partners, you could downgrade this card after one year to the no-annual-fee version, Chase Sapphire, which still earns 2x UR on dining, though it loses all the other advantages.

Chase Sapphire Reserve (4.8%)

Chase Sapphire Reserve is a credit card with a $795 annual fee that earns 3x Ultimate Rewards (UR) on dining. In addition, this card offers a $300 Dining credit via Sapphire Reserve Tables each year. This card is essentially the premium version of Sapphire Preferred. Although the annual fee looks intimidating, it comes with a $300 annual travel credit plus various other statement credits, with a total value of $2,000, which can greatly ease the burden of the annual fee. It also earns 3x on other travel purchases and includes airport lounge access. Holding this card also increases the value of UR within Chase: redeeming UR for flights, hotels, or rental cars can reach a value of 1.5c each. If you spend heavily on travel and enjoy premium benefits, this card may be a better fit than Sapphire Preferred.

Citi Strata Premier (4.5%)

Citi Strata Premier is a credit card with a $95 annual fee. It earns 3x ThankYou Points (TYP) on restaurants, gas, airfare, and hotels. Valuing the points at 1.5 cents per point, travel-related spending is equivalent to 4.5% back. In addition, it also earns 3x TYP at supermarkets, and the points can be transferred to airline programs such as AA, Singapore Airlines, and Avianca, which can be quite valuable for redeeming on oneworld and Star Alliance flights. This card also added a $100 hotel credit, but it can only be used on stays of $500 or more, once per year.

US Bank Altitude Go (4%)

US Bank Altitude Go is a no-annual-fee credit card that earns 4% cash back on dining, and this dining category includes dining, takeout, and delivery, so the coverage is quite broad. In addition, this card earns 2% cash back at supermarkets, gas stations, and on streaming services. It also offers a $15 annual streaming credit, making it a solid value pick. After the change, this card earns 4% back only on the first $2,000 each quarter.

Bank of America Customized Cash Rewards (3-5.25%)

BofA Customized Cash Rewards is a no-annual-fee credit card. You can choose 1 of 6 categories to earn 3% cash back: online shopping, travel, drug stores, home improvement/furnishings, gas, and dining, which makes it very practical. In addition, if you have a checking account with BofA, or especially high deposits, you can get a 10%-75% rewards bonus. In theory, that means up to 5.25% cash back. Redemption is also easy: you can redeem directly for cash to offset your credit card statement.

BofA credit cards also provide a free credit score. In addition, on the first weekend of each month, BofA cardholders can get free admission to certain museums, which is a nice perk. Purchases are also interest-free for the first 12 months, which is another plus.

AMEX Hilton Aspire (3.5%)

AMEX Hilton Aspire is a credit card with a $550 annual fee. It earns 7x Hilton points on dining and takeout. Valuing Hilton points at 0.5c/p, that works out to a 3.5% return on dining. Although the annual fee is high, the card offers hotel credits and airfare credits, and if you use them all, it can justify the fee.

Chase Freedom Flex (3%)

Chase Freedom Flex is a no-annual-fee credit card that earns 3x Ultimate Rewards points on dining, with no cap. It also has quarterly 5x categories and 3x at drugstores, making it well worth keeping long term. In addition, if you have a Chase sapphire/Reserve card, you can transfer UR points to airline miles or hotel points for even greater value. Valuing UR at 1.6c/p, this means 4.8% back on dining.

Chase Freedom Unlimited (3%)

Chase Freedom Unlimited is a no-annual-fee credit card that earns 3x Ultimate Rewards points on dining, with no cap. It also earns 3x at drugstores, making it well worth keeping long term. In addition, if you have a Chase sapphire/Reserve card, you can transfer UR points to airline miles or hotel points for even greater value. Valuing UR at 1.6c/p, this means 4.8% back on dining.

Capital One Savor (3%)

Capital One Savor is a recently refreshed no-annual-fee credit card. It earns 3% cash back on restaurant purchases. Beyond restaurants, it also earns 3% cash back on entertainment and supermarkets. You could say it is a good fit for people who mostly eat out but also cook at home sometimes. It also has no foreign transaction fee, so it works well for travel outside the US too, making it a solid dining card to use around the world.

Wells Fargo Autograph (3%)

Wells Fargo Autograph is a no-annual-fee credit card that earns 3% cash back on dining. For a no-annual-fee card, it is rare to see such strong rewards on travel spending. It also earns elevated rewards on travel-related purchases, making it one of the most well-rounded no-annual-fee cards.

Citi Costco (3%)

Citi Costco credit card is a no-annual-fee credit card (assuming you have a Costco membership). It earns 3% cash back on dining, with no cap. As a Visa card, it has excellent acceptance at both large and small restaurants. Besides dining, it earns 4% on gas, 3% on travel, and 2% at Costco and costco.com. If you spend a lot at Costco and already have a Costco membership, this card is somewhat similar to the Uber card in that the overall cash back setup can work well as a one-card solution. The downsides are that you must have a Costco membership to apply, and there is currently no welcome bonus. How long would you have to spend on it to match someone else’s $500 welcome bonus? You can do the math.

Other Credit Cards

There are also some hotel co-branded cards that offer strong dining rewards, but the points can only be used within that hotel program. If you are loyal to a particular hotel brand, these cards may also be worth using.

• AMEX Hilton: no annual fee, 5x Hilton points on dining, equivalent to 2.5% back.
• AMEX Surpass: $150 annual fee, 6x Hilton points on dining, equivalent to 3% back
• Chase Hyatt: $95 annual fee, 2x Hyatt points on dining, equivalent to 3.2% back

Besides the cards above that offer fixed rewards on restaurant spending, some cards also offer 5% back or 5x points on dining during a certain quarter of the year. Common examples include:

• Chase Freedom: no annual fee, 5x UR on dining in Q3. If you also have a premium UR card, that is equivalent to 8% back.
• Discover it: no annual fee, 5% cash back on dining in Q3. If you are newly approved, the first-year cash back match makes that effectively 10% back.
• US Bank Cash+: no annual fee, each quarter you can choose 5% cash back on fast food and 2% cash back on restaurants
• Quarterly 5x bonus summary

If you are not limiting yourself to credit cards, the PayPal debit card offers 5%:

• PayPal Debit card: 5% cash back on dining, limited to the first $1,000 in spending per month

In addition, there are now many food delivery services, and quite a few credit cards offer related benefits, such as Uber Eats. If you use those services often, these types of rewards cards are also worth watching.

Summary

If you do not spend much on dining, a no-annual-fee cash back card is probably the better choice. If you dine out more often, then you can choose an annual-fee card based on your spending habits, your preferred points ecosystem, and the benefits you value.

Dining

Credit Card	Cash Back	Annual Fee	Notes	Apply
Citi Strata Elite	4.5%/9% (6x TYP)	$595	$700 in annual credits; 3x normally, 6x on dining on Friday and Saturday nights	Apply
Citi Prestige	6.5% (5x TYP)	$495	$250 in annual travel credits	No longer available for direct application; only obtainable via product change
AMEX Gold	6.4% (4x MR)	$325	$300 in annual credits	Apply
Citi Custom Cash	5%	$0	$500 monthly cap	Apply
AMEX Green	4.8% (3x MR)	$250	Clear credit of $189	Apply
Chase Sapphire Preferred	4.8% (3x UR)	$95	$50 hotel credit	Apply
Chase Sapphire Reserve	4.8% (3x UR)	$795	About $2,500 in various annual credits	Apply
US Bank Altitude Go	4%	$0	Only applies to the first $2,000 in dining purchases per quarter	Apply
Citi Strata Premier	3.9% (3x TYP)	$95	$100 annual hotel benefit	Apply
Capital One Savor	3%	$0	No annual fee for the first year	Apply
BOA Customized Cash	3%	$0	Can be boosted to 5.25% with a premium checking account	Apply
Wells Fargo Autograph	3%	$0		Apply
Citi Costco	3%	$0	Requires at least a $55 Costco membership	Apply
Detailed analysis: Best Credit Cards for Dining

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