Sams Club's new 5-3-1 cash back Mastercard will come equipped with EMV chip security technology when it's rolled out June 23.
According to a press release, the plastic's small integrated circuit prevents unauthorized users from duplicating someone's card. It also stops unknown parties from gaining access to consumers' private information.
The card is the first of its kind from a major retail company. Consumers will receive five percent cash back on fuel, three percent on dining and travel. All other purchases will bring one percent cash back.
Sam's Club's president and CEO said the retailer constantly searches for methods to save customers money.
"We're always looking for ways to find time and money-saving solutions for our members," Rosalind Brewer said. "The 5-3-1 Sam's Club program and co-branded Mastercard mean industry-leading savings and security innovation for today's consumer."
Brewer also said the $5,000 maximum amount of money users can earn from cash back purchases a year, can sufficiently fund a family trip or some new electronics.
"Under the 5-3-1 cash back program, Sam's Club members can earn up to $5,000 cash back annually. That could cover a family of four's travel to Disney, or five sets of laptops and wireless phones for a small business. We believe this value is the best in the industry," she said.
A member of the National Retail Federation's general counsel told Valuewalk the chip signifies Sam Club is serious about protecting customers.
"They're not serious about reducing fraud, unless they put a pin on," Mallory Duncan said. "We remain insistent that U.S. retailers' customers be given the same protections as consumers in more than 80 countries who have both a chip and a PIN securing their debit and credit cards."
While June 23 is a few weeks away, Sam's Club will automatically enroll Plus members to earn $10 in cash rewards for every $500 they spend on select purchases.
