Q: We are older, and ready to stop earning airline miles. We heard about the Fidelity Rewards program and the Schwab Bank Invest credit cards through the Bottom Line article you wrote. We want a credit card that has a photo ID like the one we have with AA. No one else I can find has a picture ID that has a 2 percent cash back on all purchases without limits or annual fees. Where can I find a credit card with a picture ID that has some cash back feature?
A: It sounds like savings and security both mean a lot to you right now, so I've put together a list of my favorite cash back credit cards with great fraud detection programs. They may not all have the photo ID feature you're used to, but they'll all work hard to keep you safe while earning you some nice rebates.
Photo ID credit cards may give you the feeling of extra protection against identity theft. However, you might not realize that they offer no real defense online or at the checkout counter. Under most merchant agreements, retailers must only use the presence of a signature on the back of a credit card to consider it valid for a purchase.
I'm not telling you this to make you feel foolish for holding on to that photo ID credit card for so long. I just want to liberate you from a niche product feature that's keeping you from really enjoying some of the great cash back credit card offers on the market right now, like these:
- Fidelity Rewards Visa Signature Card. Schwab discontinued its 2 percent cash back card, leaving Fidelity's Visa the "last man standing" from the old guard of brokerage credit cards. You'll earn 2 percent of every purchase you make as a direct deposit to your linked Fidelity brokerage account. It's an unusual reward structure, but worth it if you're planning to use a broker to manage your retirement funds.
- Discover it® Cash Back. (This card is not currently available on CardRatings) Instead of a photo ID, rely on an award-winning fraud detection team. Discover's cash back credit card lets you earn up to 5 percent back on a series of rotating promotional categories up to the quarterly cap when you sign up for each program. Discover offers helpful, 100 percent U.S.-based customer service staff.
Giving up your photo ID credit card doesn't have to mean compromising your rewards or your security, so you can spend more time and less money doing things you really enjoy.