Using a dining credit card in the Philippines to enjoy food, beverages, and entertainment may be more beneficial than using cash. When you use a restaurant credit card to pay for your meals, you are entitled to more cash rewards, waived annual fee, complimentary food, and beverages.
Given that the Philippine Statistics Authority (PSA) indicated that food expenditure accounted for 41.5% of expenditure at the end of 2018, these estimates have now grown due to high inflation rates. As a result, earning cashback reward points for eligible purchases while enjoying delicious meals or having fun with your loved ones can help you save money.
Even though credit cards are widely used in today's society, you must ensure you get the most out of them. Therefore, researching the cash rewards card that best suits your lifestyle, has low-interest rates, high cashback rates, and additional benefits like entertainment vouchers or improves your credit score is crucial.
What is a dining credit card?
Dining credit cards are helpful since they allow you to enjoy various dining alternatives without spending cash on the spot. Using a dining card frees your mind from financial concerns as you enjoy your food and drinks. Dining cards are especially perfect for travelers because they allow you to pay for meals and drinks at restaurants no matter where you are. You can also use a restaurant credit card to pay for meals and drinks at restaurants, bars, and cafes. Additionally, grocery stores allow you to earn bonus points after you spend on additional eligible purchases such as food, drinks, or fruits.
As a result, if you frequently eat out and want to save money, having a restaurant credit card may be an excellent idea. You can earn and accumulate reward points that can be exchanged for gift cards or other exclusive benefits applied to your other eligible purchases. However, acquiring one of these cards may not be worth it just yet if:
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You do not dine out regularly.
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You are not sure how much dining out will cost each month.
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You are not sure how much it would benefit you.
How do dining cards work?
Every time you make any eligible purchases with your dining card, you are rewarded with points that may be exchanged for cash or gift cards. The amount you spend determines the number of points, and the rate you earn depends on how much you spend on meals each month. When paying with a dining credit card in a restaurant, provide your number so the purchase can be charged. After you sign your name, the waitress will swipe your card and return it to you signed as confirmation that they received your money. The server will then determine whether you have sufficient available credit on your account to cover the transaction. You will have to pay cash if you do not have enough credit to cover it.
For instance, if you spend ₱1,000 in one month and your rewards rate is 2%, you will receive ₱200 in rewards. Therefore, the more you spend, the more you earn with your card.
How to choose the best dining card
With a dining cash rewards credit card, you can get bonus points for spending money at cafes, bars, and restaurants. They frequently include many benefits, such as complimentary meals and beverages, free transportation, special prices at particular establishments, and more. The best way to determine which dining card is best for you is to research the various options. A dining plastic card may be the best option if you frequently eat out and want to get some of your money back. However, if you do not frequently eat out or do not believe you will use all the benefits offered by these cards, it may be best to choose another rewards card.
Once you have decided what kind of restaurant experience you want or do not want, it is time to decide which specific card will work best for your needs. The following seven questions may assist you in determining whether a dining card is appropriate for you:
Do you spend much on eating out and other expenses?
A dining card will come in handy if you eat out frequently, especially in high-end restaurants where you spend a lot on food and drinks. You can earn more rewards, even from drugstore purchases, than if you use a standard card.
Do you frequently eat out?
If this number is low, the card may not be worth buying because the value of the points obtained vs. the cost of maintaining the card will be less. If you frequently eat out and order takeout, the cashback on dining might outweigh the drawbacks. You also need to consider the travel rewards you get when you dine out and pay using a general dining card. These travel rewards will go a long way to help you save money on other purchases, flights or accommodation as you travel.
Do you have any favorite restaurants?
A dining card could provide meal discounts if you enjoy dining at your favorite establishments. Since the cashback or incentives, you receive will allow you to minimize your expenses, you can enjoy your favorite meals or other purchases whenever you want at a lower cost.
Do you indulge in the expensive meals?
If you do, how much does it cost on average? Some credit cards offer interest-free financing on existing purchases up to a certain amount. So, if you use them to make large eligible purchases— say, a dinner for two at your favorite luxury restaurant — you won't have to pay any interest. Other credit cards only offer a welcome bonus before charging interest on transactions.
As a result, if your card has the set amount required to earn more rewards at ₱300, you will not pay interest on any other eligible purchases you make while enjoying your tasty food or beverages until the introductory period expires.
Do you find this ideal for your budget?
A dining card will come in handy if you want to treat yourself and your loved ones to a fancy meal, a night out at a high-end hotel, or grab snacks at the gas stations. It will also help you improve your credit health as the more you repay your debt on time, the higher your score will be.
Do you want to pay annual fees on your card?
It's crucial to remember that some credit cards have an annual fee and others don't. You can get all the benefits of an annual fee card like earning rewards points on eligible delivery service without paying for it. However, ensure that it comes with other perks like cashback rewards or points on rewards programs so that there will be no extra costs when using it regularly throughout the year.
Do you need more perks?
Most credit cards let you have combined purchases and earn cash rewards. You can also pay over time by splitting eligible purchases into equal monthly payments and redeem rewards. You also need a dining card that lets you have bonus categories on your travel purchases, eligible delivery service, and grocery delivery. Additionally, you can check whether your card has any reward program for foreign transaction fees incurred by any capital one entertainment purchases. These payments include annual streaming purchases like Netflix, Hulu, Spotify, and Apple Music.
Types of restaurant credit cards
Dining cards are specialized cards that primarily give credits and benefits for usage at eateries, bars, clubs, and other locations where you can spend money on food, beverages, entertainment and any travel purchases annually made. You can earn points for various expenditures, including dining out or incurring foreign transaction fees as you shop abroad. Here are the main categories of restaurant cards:
Dining cash rewards credit cards
Dining rewards credit cards, gives you points or cash back when you make eligible purchases at restaurants and other eateries.
Union Bank Racks Visa Card
If you like Racks' flame-grilled ribs, this dining card from Union Bank will provide you access to special discounts. You will receive one point for each ₱20 you spend using your Racks Visa Card. You will receive a complimentary traditional Caesar salad when you use your Visa card for the first time and other eligible purchases of at least ₱800 at any Racks branch.
Additionally, any Racks restaurant will give you a complimentary Apple Pie A la Mode for dessert on your birthday. However, to be eligible for this card, you must meet the minimum income criteria of ₱50,000 and pay the annual charge of ₱1,500.
RCBC Bankard LJC Card
Customers who frequently dine at LJC restaurants can benefit from discounts and other benefits by using this RCBC card. When you sign up for the card, you will receive a free bottle of wine as a welcome bonus reward. You will then get a discount on your birthday. You will also receive a 10% discount on your total bill if you use your card at any LJC restaurant like Abe, Bistro Remedios, Larry's Café & Bar, Lorenzo's Way, Café Adriatico Express, Café Adriatico, Café Havana, Fely J's Kitchen, or Abe's Farm.
Additionally, every ₱100 you pay from your card at gas stations or for all of your travel expenses will also earn you one reward point. You can then redeem these rewards points as a statement credit to offset your bill.
General rewards cards
With these cards, you can accumulate points that can be used for purposes other than dining. You can also earn points after you spend on other purchases and use the cashback to buy food. You can also earn rewards points after you spend on bonus categories like streaming services, eligible purchases and balance transfers. You can then use the reward points as statement credits to help pay off your debt.
Citi Rewards Card
Travelers who enjoy dining out in luxurious hotels can accumulate reward points each time they make a purchase. Your points can pay for your annual fee, redeem them for airline miles, statement credits monthly, get direct deposit, or free Cebu Pacific flights.
When you purchase from grocery stores or dine out, you can earn 3X rewards points or one point for every ₱30 spent on eligible spend category. Additionally, you may exchange your points for prizes like GetGo airline miles and access to special offers and discounts. Before this rewards credit card can be used, a minimum yearly fee of ₱2,500 and an income threshold of ₱20,800 are needed.
You can also get the Citi Grab Card. It is a ₱3,500 annual fee Citi card that offers 3x points on dining, online subscriptions, and entertainment purchases. You also get priority booking on Grab rides, as well as a dedicated customer helpline. You also get two points after you spend ₱60.
BDO Diners Club Premiere
For foodies, the more you make dining purchases, the more travel rewards like free air miles you accumulate with the BDO Diners Club card. The card also allows you to access the hotel credit. You can use the rewards points earned to pay for your accommodation or eligible streaming services or any other entertainment purchases you enjoy during your stay. You can also earn twice as many trip miles by eating out, but there is a ₱4,500 annual membership fee.
However, as a welcome bonus, the first year is free. You can also earn no annual fee points while using the card. You earn rewards points after you spend ₱600,000 on eligible purchases within the first 36 months from account opening of no annual fees.
Additionally, you can convert miles locally and internationally, earning one mile for every ₱30 spent on travel purchases each year. When you charge transportation to your card, you also get free travel accident and luggage insurance worth up to ₱20,000,000. You can also access 1,400 diners club privileges for world-class dining, travel, and entertainment experiences in over 70 countries. You also get bonus rewards and access to over 700 diners club airport lounges worldwide.
Additionally, you can use the EasyPay installment program to pay for all of your other purchases, improve your annual hotel savings benefit, enabling you to earn more perks. You can enjoy perks like hotel credit
BDO American Express Cashback Credit Card
With Live The World feature, you may save up to 50% on shopping, dining, leisure, and wellness with this BDO card. You can also make purchases and balance transfers to your BDO-issued American Express card and pay them off in monthly installments with low monthly add-on rates. You also get 5% cashback on dining and other eligible purchase for the first three months from account opening when you spend and pay with the cashback card. You also get 1% cashback on domestic purchases and 2% on international.
Furthermore, your retail purchases are insured against theft, loss, or damage for up to ₱50,000 per occurrence or a maximum of ₱250,000 per year within 30 days of purchase. You must, however, be over the age of 21 and earn a salary of over ₱420,000.
HSBC Red Mastercard
The HSBC Red Mastercard rewards you with bonus points for spending money and paying with your card while traveling. One extra point is received for every ₱20 spent, although there is an annual membership charge of ₱1,500. The first year is free.
You also earn 4x membership rewards on online, dining, shopping, and international transactions. Then, in over 27,000 stores in 160 countries worldwide, you may take advantage of 0% interest installment plans for up to 36 months. If you live near a Caltex gas station, you may fill up your car or motorcycle and receive a 6% rebate on your first fuel purchase, plus a 3% rebate all year. To qualify, you must be over the age of 21 and earn more than ₱200,000 per year.
Pros and cons of dining cards
Dining cards might help you save money on meals. You can use a dining card to pay for your meal and receive a discount or cashback on that purchase. You can also use the combined eligible purchases feature to help you pay for your debts faster. However, before applying for a restaurant card, you should be aware of the benefits and drawbacks of using dining cards.
Pros
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Has high rewards value. More incentives are available because many restaurant cards are cashback or bonus points cards with high rewards and redemption values. Top competitors offer at least 2% back in rewards per dollar spent on dining purchases. Additionally, even those with an annual fee provide substantial benefits and rewards that you can use as a statement credit to help repay your debt.
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Has easy-to-use features for daily use. Restaurant cards can be used in many rewards programs. Additionally, they have lower service fees that enable you to earn more rewards points you can purchase goodies at gas stations, pay for car rentals as you travel or even pay for eligible delivery services.
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Has more perks. The welcome bonus on most dining cards is worthwhile and fairly accessible. You can also earn 4x membership rewards on some cards like the HSBC Red Mastercard. Additionally, some cards let you choose bonus categories like earning reward points from any car rentals you make, drugstore purchases, streaming services, grocery delivery, or even when you buy from the gas stations. For instance, if you have a JPMorgan Chase Bank account, every travel purchased through Chase ultimate rewards earns you three points per dollar on dining. When you travel, you can also get luggage insurance, so you can dine and have fun without worrying about losing your belongings.
Cons
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Has limited use of bonus points. Providers usually limit dining cards to a certain number of rewards points that can be redeemed for meals. Therefore, you must use your plastic money towards a meal before the rewards points expire, or they're lost forever.
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Has additional costs involved. If you wish to redeem your rewards points at a restaurant that does not accept your specific card, you must pay in cash. You must also pay interest on your debt every month, meaning more money is going out than coming in, especially if you have not used your card regularly.
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Has a high APR on some cards. The APR might reach 30% or higher. As a result, this card may not be appropriate for someone searching for a low APR on purchases rather than incentives from using their card at restaurants and other places where they already spend money.
The main requirements for getting a dining card
Before a provider may issue your dining card and allow you to enjoy eating out, some conditions and qualifications must be completed. There are a variety of requirements depending on the bank, but the following are the most important:
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You must be of legal age with a valid identification like an ID or passport.
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You must provide documentation to show you are employed or self-employed.
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You must possess a current Philippine passport or ID card.
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You must have a good credit score, preferably above 650.
How to apply for a dining card
You must apply for a dining card once you have met the required conditions and have valid qualifications. You can accomplish this in three ways: online, by phone, or in person at your preferred bank location.
To apply for a dining card online, follow these steps:
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Visit your favorite bank's website.
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Choose Credit Cards.
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Choose the sort of restaurant card you want.
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Select Apply Now.
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Check that all the needed information is entered accurately.
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Click the Submit button.
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Please wait for confirmation.
How to repay dining card debt
A dining credit card debt can be repaid in many ways, including online payments. You need to pay off your debt as soon as possible. The longer you delay, the more interest will accrue, making it more difficult to pay off your balance. If you don't have the money to pay off your balance in full, try looking for ways to make extra money or cut back on spending.
Then to repay your restaurant card debt online, follow these steps:
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Log in to your account.
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Click the Payment link.
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Select the Make a payment option.
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Enter your billing information and click Pay Now.
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Enter your card number, security code, and the last four digits of your phone number.
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Hit Submit when you're done.
Legal regulation of the credit cards market in the Philippines
The Bangko Sentral ng Pilipinas, or BSP, oversees the banking and financial industry in the Philippines. The nation's financial institutions, including banks, insurance firms, and other financial service providers, are under the BSP's regulatory control. The BSP has also imposed various regulations on plastic money issuers to safeguard consumers from financial fraud.
These regulations include:
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A credit card issuer is required by BSP to tell their clients how long it will take for their payments to be processed and how much they would be charged if they use their cards to carry or do balance transfers.
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A credit card issuer must be open and honest about the conditions of their agreements with businesses that accept plastic money as payment for their products and services.
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A credit card issuer must register with the BSP to receive a license number and be listed in the central bank's database. BSP does this to ensure that regulations governing the payment system are followed and to safeguard consumers against unethical behavior by credit card issuers.
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A credit card issuer must pay an annual fee to BSP for supplying credit cards. Additionally, providers must put in place security measures that reduce the risk for customers by monitoring their transactions in the event of fraud, loss of funds due to theft, or loss of property.
The actual cost of dining cards
It's critical to comprehend what your fees will be if you decide to apply for a new card. You should be aware of your credit card's overall cost over time, not the annual fee. So, how much does it actually cost? That is dependent on how frequently you use the card. Basic rewards points inclusive of the welcome bonus should be plenty if you just frequent one or two restaurants per month. However, if you frequently use it at well-known restaurants like Jollibee and Antonio's, you might consider finding another option. Then, the cost of dining cards varies. It depends on the following:
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Annual fee. The yearly cost can be ₱5,000 or free. Higher-end cards have higher yearly fees and often provide additional privileges, such as free hotel room upgrades or access to special events, than those that do not.
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Foreign transaction fees. Your provider will charge you a foreign transaction fee if you use your card outside of the Philippine, which varies depending on the bank.
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Balance transfer fee. You must pay a balance transfer fee when transferring funds from one account to another. You will pay this fee each time you use your card to transfer money between two accounts with differing balances, such as from a savings account to a new credit account or from different bank accounts. Some dining cards may reduce the initial balance transfer cost, saving you money the first time you transfer.
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Fixed monthly plan fee: A fixed monthly plan cost is a one-time charge that applies to all purchases made with your card within a set period, usually 30 days after account opening. Some banks provide it as a courtesy, while others do not.
Conclusion
Restaurant cards are useful since they allow you to pay for meals and beverages. You can use them to pay for meals, takeaways, and even bar tabs. If you are going out to eat with friends or family, they can also be used as a group payment option if everyone pays their own portion of the bill.
Dining cards are also adaptable and suitable for a wide range of spenders. This is a perfect alternative if you enjoy eating out but do not always want to take cash with you. A dining card could be useful if you prefer making your own meals but want to indulge yourself once in a while. And if you want to spend your money on things other than meals, such as travel and shopping, having a dining card will give you more freedom in spending your money as you earn more cash rewards.
So, the next time you make other purchases, use your credit card to earn more rewards. Then, keep up with the monthly payments and pay off the debt to prevent incurring interest on any charges. Remember, having one of these cards is an excellent way to save money when dining out. They also ensure you can enjoy a night out without worrying about the cost.
