Booking.com has officially stepped into the U.S. credit card market. Issued through First Electronic Bank, the card from Visa is designed to reward loyal Booking.com users – but it also raises important questions for travellers and hoteliers alike.
The Offer in a Nutshell
No annual fee
$150 travel credit after spending $1,500 in the first 90 days
Extra $100 travel credit after $15,000 annual spend
Instant Genius Level 3 upgrade with perks like up to 20% discounts, free breakfast, room upgrades, and priority support
No foreign transaction fees
Travel protections, including car rental coverage, trip cancellation/interruption insurance, and travel accident insurance
Rewards Breakdown
Rewards appear as Booking.com travel credits (1 credit = $1 value) and can only be used for future purchases on Booking.com:
6% back on accommodation booked via the Booking.com mobile app
5% back on other travel bookings (flights, car rentals, cruises, attractions, airport taxis) via Booking.com
3% back on dining, gas, and groceries
3% back on in-person purchases made during an eligible stay within 50 miles of the booked accommodation (up to $10,000/year)
2% back on all other purchases
The Truth Behind “1 Credit = 1 Euro”
At first glance, it sounds generous: for every credit you earn, you get the equivalent of one euro to spend on Booking.com. This makes it seem like Booking.com is rewarding you out of its own pocket.
In reality, that’s not the case. The credits come from the commission Booking.com charges hotels – which can be as high as 35%. For the Genius Rewards Visa, Booking.com simply takes a slightly smaller commission (around 6% less in this case) and passes that amount to you in the form of credits.
The hotel’s earnings don’t magically increase because of this – the same commission structure remains in place, and the booking still happens through Booking.com. The only difference is that you’re being given a reason to keep booking through them rather than going direct.
There’s no minimum redemption amount – but don’t be fooled. Every single cashback reward is locked inside the Booking.com ecosystem. In other words, you can only spend it on Booking.com, nowhere else.
The Hidden Catch
On paper, the Genius Rewards card looks tempting for frequent Booking.com users. But there’s a major limitation: you can’t use these rewards anywhere else. Unlike general travel rewards cards, there’s no flexibility to transfer points or redeem them for cash, flights, or hotel stays outside the platform.
Ironically, cashback offers like this aren’t new – and in some cases, regular Visa cards have offered even higher rewards (7% instead of 6%) without tying you to a single company.
Impact on Hotels
While travellers may enjoy the perks, hoteliers bear the cost. Genius discounts (often 10–20%) come entirely out of the hotel’s gross revenue – including VAT that the hotel never actually receives. Combined with higher OTA dependency, this further squeezes margins and makes it harder for independent properties to compete.
Should You Get the Card?
If you book nearly all your travel through Booking.com and don’t mind being locked into their ecosystem, this card could be appealing. However, if you value flexibility, a general travel card may give you better earning potential and broader redemption options.
One fact remains: even with Genius Level 3, it’s often still cheaper to book directly with the hotel. And direct booking frequently comes with added benefits – from better room allocation, amazing direct booking incentives to flexible cancellation policies.
The Best Way to Compare
If you’re curious whether Booking.com’s price really is the best deal, there’s an easy way to find out. The BookBetterDirect browser extension and mobile app automatically show you the hotel’s official website, direct booking perks, and contact details right on Booking.com, Expedia, or TripAdvisor.
With one click, you can compare prices and see if booking direct saves you money – without searching manually.
Bottom line: The new Genius Rewards Visa may look like a gift for travellers, but it comes with strings attached. Always compare – because the smartest loyalty is to your own wallet.
FAQ About Booking.com Credit Card launch in the USA
No. All rewards earned with the Genius Rewards Visa can only be redeemed for travel booked through Booking.com. This includes accommodation, flights, car rentals, and other travel-related purchases made on the platform.
Not always. Even with Genius Level 3 discounts, hotels often offer lower prices – or better value – when you book directly. Extras like free parking, flexible cancellation, or room upgrades are often only available when booking via the hotel’s own website.
Hotels pay for Genius discounts entirely out of their gross revenue, including VAT. This reduces their margins and increases dependence on OTAs (Online Travel Agencies). For independent hotels, this can make it harder to compete and maintain profitability.
Yes. General travel rewards cards offer more flexibility, allowing you to use points or cashback with multiple brands, transfer points to airline partners, or even redeem for cash. In some cases, regular Visa or Mastercard options have offered higher cashback percentages without tying you to one platform. Have a look on the Nerd Wallet platform or The Points Guy.
Use the BookBetterDirect browser extension or mobile app to instantly see direct rates and perks alongside OTA listings. The Browser extension works for or Chromium browsers like Chrome, Edge, Brave. There is also a Firefox Browser Extension to quickly find the best deal.
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