December 2, 2023

4 Best Credit Cards for Crowdfunding Pledges

There’s more to selecting the best crowdfunding cards than you may think. From financing dream…

4 Best Credit Cards for Crowdfunding Pledges

There’s more to selecting the best crowdfunding cards than you may think.

From financing dream projects to covering healthcare gaps, crowdfunding has changed the way we donate. And it makes sense; Americans donate millions each year, so why not give directly to the people and projects that most appeal to us?

Despite its prevalence, crowdfunding has yet to make an appearance as a bonus rewards category on any of our favorite credit cards (well, not directly — but more on that below). Fortunately, there are options available for people who want to earn rewards while doing good.

Just make sure you pay attention to fees. Most crowdfunding sites charge you in the currency of the campaign’s home country. So, if you’re donating to a campaign in another country, you may actually get a better deal using a credit card with fewer rewards and no foreign transaction fees.

Here are some options to help you find the best card for crowdfunding pledges.

1. Bank of America® Cash Rewards credit card

Although you can’t exactly find a card that definitively lists crowdfunding as a bonus category, the Bank of America® Cash Rewards credit card card may be the closest thing. In addition to 2{d54a1665abf9e9c0a672e4d38f9dfbddcef0b06673b320158dd31c640423e2e5} back on groceries and at wholesale clubs, this no-annual-fee card lets you pick your own 3{d54a1665abf9e9c0a672e4d38f9dfbddcef0b06673b320158dd31c640423e2e5} cash back category from a list of options. The one we’re interested in is Online Purchases.

Given that crowdfunding sites are, well, websites, your pledges will usually count as online purchases, so you can get 3{d54a1665abf9e9c0a672e4d38f9dfbddcef0b06673b320158dd31c640423e2e5} back when you activate your Online Purchases category. You can choose a new 3{d54a1665abf9e9c0a672e4d38f9dfbddcef0b06673b320158dd31c640423e2e5} bonus category each month, but remember that bonus cash back rewards are capped at $2,500 in combined category spending each quarter.

Unfortunately, the Bank of America® Cash Rewards credit card does charge a foreign transaction fee of 3{d54a1665abf9e9c0a672e4d38f9dfbddcef0b06673b320158dd31c640423e2e5} This means you shouldn’t use it for pledges if the campaign is in a foreign country, otherwise all of your cash back will be effectively cancelled out by the foreign transaction fee.

2. Chase Sapphire Preferred® Card

The next best thing to bonus category rewards is earning valuable points. Although the Chase Sapphire Preferred® Card is popular for its 2x points per dollar on dining and travel, it offers 1x point per dollar on all your non-category spending. For example, you’d earn 1x point per dollar on your crowdfunding pledges.

The Chase Sapphire Preferred® Card earns Ultimate Rewards® points, which many travel rewards card lovers would value between $0.015 and $0.02 per point when transferred to a travel partner. That said, the actual value you get will depend on how you redeem those points, so you’ll want to do your own math.

In addition to valuable points, the Chase Sapphire Preferred® Card also charges no foreign transaction fees, making it a good choice for any pledges to crowdfunding campaigns in foreign currencies. The card does come with a $95 annual fee, though, so be sure to check whether you’ll earn enough rewards to make the fee worth paying.

3. Citi Premier® Card

In terms of crowdfunding rewards, the Citi Premier® Card has many of the same benefits as the Chase Sapphire Preferred® Card. Specifically, the Premier earns a base rewards rate of 1x point per dollar on non-category spending, which would include crowdfunding. (It also earns 3x points per dollar on dining, groceries, gas, and hotel and airline purchases.)

The Citi Premier® Card earns Citi ThankYou® points, and like other transferable travel points, the value of ThankYou points will depend on how you redeem them. In general, ThankYou points are valued between $0.015 and $0.02 each when you transfer them to a Citi hotel or airline partner.

As a travel card, the Citi Premier® Card has no foreign transaction fees, so you don’t have to worry about the currency in which your pledges are charged. However, the $95 annual fee is something to consider when determining if this card is right for you.

4. Capital One® Quicksilver® Cash Rewards Credit Card

Last but definitely not least, the Capital One® Quicksilver® Cash Rewards Credit Card is ideal if you’re not interested in earning points or paying an annual fee — but you still need protection against foreign transaction fees. Yes, the Capital One® Quicksilver® Cash Rewards Credit Card is a rare find: a cash back rewards card with both a $0 annual fee and 0{d54a1665abf9e9c0a672e4d38f9dfbddcef0b06673b320158dd31c640423e2e5} foreign transaction fee.

Cardholders earn an unlimited 1.5{d54a1665abf9e9c0a672e4d38f9dfbddcef0b06673b320158dd31c640423e2e5} cash back on every purchase with no categories to worry about. With no fees, that means you’ll net that full 1.5{d54a1665abf9e9c0a672e4d38f9dfbddcef0b06673b320158dd31c640423e2e5} cash back when you make crowdfunding pledges, regardless of the home currency of the campaign.

Reap the rewards of working together

Crowdfunding is a great way for us to come together to do something great, whether it’s donating to a good cause or helping fund the next great invention. But while working together can definitely be a reward all of its own, using the right credit card for your pledges can make it extra rewarding.