Reply
Established Contributor
Posts: 652
Registered: ‎12-12-2012
0

Re: Cash + Holders, let's fight for our rewards!

I think it is laughable for these banks to cry poverty.  They are making a killing on swipe fees.  Also, some people are probably paying annual fees, interest, and other fees.  I find it hard to believe that the product in their current form is losing them money. I think they believe that they can have even better margins, so they decided to make the changes. 

 

My biggest qualm is that they changed too many things at once.  As an aspiring business owner, I respect their desire to make profits.  I just don't see a problem with offering a product that is far superior to others so I can build customer loyalty and hopefully increase my number of customers.  I dislike the mentality of capitalism that we need to cut corners and give customers less all in the name of profit. 

Gas: Discover It, Penfed Platinum Rewards x2, Chase freedom, Citi TYP
Plane tickets: CSP
Groceries: AMEX BCP, Penfed Platinum Rewards,Citi TYP
Clothes: Express, Amex BCP, Discover IT
Amazon: Citi Forward, Cash +
Restaurants: Citi Forward, Chase Freedom, Discover IT, CSP
Hotels and other travel: Discover Escape, CSP
Movies: BofA travel rewards visa signature(fandango), Discover IT, Citi Forward, Freedom
Bars, clubs, tomfoolery: CSP, Citi Forward, Discover IT, Freedom
Balance transfers: Kroger 123 rewards
Bill Pay: Chase Ink Plus, Citi Forward,
Everyday spending: Bofa Accelerated cash rewards amex, Discover Escape
Senior Contributor
Posts: 4,694
Registered: ‎02-23-2011
0

Re: Cash + Holders, let's fight for our rewards!


FutureBillionaire wrote:

I think it is laughable for these banks to cry poverty.  They are making a killing on swipe fees.  Also, some people are probably paying annual fees, interest, and other fees.  I find it hard to believe that the product in their current form is losing them money. I think they believe that they can have even better margins, so they decided to make the changes. 

 

My biggest qualm is that they changed too many things at once.  As an aspiring business owner, I respect their desire to make profits.  I just don't see a problem with offering a product that is far superior to others so I can build customer loyalty and hopefully increase my number of customers.  I dislike the mentality of capitalism that we need to cut corners and give customers less all in the name of profit. 


Good luck with your campaign!

 

I for one hope you are successful.  I'd love nothing more than to use their bill pay 5% and charge all my insurance premiums for the 5% rebate.  Though the swipe fee they charge is around 2% - 2.5%, I think they should rebate me the full 5% anyway.  

 

After all, to win my business from Chase and Amex, they have to do something!  Actually, they better increase the year end bonus for me, otherwise I'll only usurp them for my isolated 5%, because Chase and Amex are still infinitely superior to them in rewards for my general non bonus spending.

 

I think this is fair for me.  

 

PS - Can we petition them to raise the limit to at least $30K?  I'd like to maximize my 5% insurance premiums.  Also, let's add in a property tax category, I could use that too!

Valued Contributor
Posts: 1,673
Registered: ‎11-11-2012
0

Re: Cash + Holders, let's fight for our rewards!


FutureBillionaire wrote:

I think it is laughable for these banks to cry poverty.  They are making a killing on swipe fees.  Also, some people are probably paying annual fees, interest, and other fees.  I find it hard to believe that the product in their current form is losing them money. I think they believe that they can have even better margins, so they decided to make the changes. 

 

My biggest qualm is that they changed too many things at once.  As an aspiring business owner, I respect their desire to make profits.  I just don't see a problem with offering a product that is far superior to others so I can build customer loyalty and hopefully increase my number of customers.  I dislike the mentality of capitalism that we need to cut corners and give customers less all in the name of profit. 


I think most of us agree that they changed too many things at once.   But, I believe (= guess) that this probably was an overreaction to indeed losing money on the card.  I think if they were merely trying to increase profits they would change fewer things, to see if the market share wasn't impacted too much.  This smacks more of  "OMG, we need to fix this NOW!" type of panic.  Earlier measures like restricting this to branch application also suggest this, that would be counter-productive if the goal was just to increase profit, if the card is profitable you want to maximize customers.

 

Swipe fees cover 1 and 2% spending, but not 5% spending.   And given all that has been discussed already (the ability to select and keep categories, the lack of a cap and some categories with very high potential spend) it's easy for me to believe that US Bank is losing on this card overall.  The card was really promoted for the 5% stuff, so I doubt if they have a lot of users doing mainly 1%

 

What about the BCP cap?  Do you think there wasn't a problem there?

Super Contributor
Posts: 5,754
Registered: ‎12-11-2011
0

Re: Cash + Holders, let's fight for our rewards!

Moral of the story...

They have the right to change the rewards whenever they want, if you don't like the changes, close the account. Lol.
;
Valued Contributor
Posts: 1,673
Registered: ‎11-11-2012
0

Re: Cash + Holders, let's fight for our rewards!


jsucool76 wrote:
Moral of the story...

They have the right to change the rewards whenever they want, if you don't like the changes, close the account. Lol.

Well, Future B also has the right to get them to try and change their minds.  It's just that his arguments don't seem very strong!

Established Contributor
Posts: 652
Registered: ‎12-12-2012
0

Re: Cash + Holders, let's fight for our rewards!


Open123 wrote:

FutureBillionaire wrote:

I think it is laughable for these banks to cry poverty.  They are making a killing on swipe fees.  Also, some people are probably paying annual fees, interest, and other fees.  I find it hard to believe that the product in their current form is losing them money. I think they believe that they can have even better margins, so they decided to make the changes. 

 

My biggest qualm is that they changed too many things at once.  As an aspiring business owner, I respect their desire to make profits.  I just don't see a problem with offering a product that is far superior to others so I can build customer loyalty and hopefully increase my number of customers.  I dislike the mentality of capitalism that we need to cut corners and give customers less all in the name of profit. 


Good luck with your campaign!

 

I for one hope you are successful.  I'd love nothing more than to use their bill pay 5% and charge all my insurance premiums for the 5% rebate.  Though the swipe fee they charge is around 2% - 2.5%, I think they should rebate me the full 5% anyway.  

 

After all, to win my business from Chase and Amex, they have to do something!  Actually, they better increase the year end bonus for me, otherwise I'll only usurp them for my isolated 5%, because Chase and Amex are still infinitely superior to them in rewards for my general non bonus spending.

 

I think this is fair for me.  

 

PS - Can we petition them to raise the limit to at least $30K?  I'd like to maximize my 5% insurance premiums.  Also, let's add in a property tax category, I could use that too!


Your sarcasm is refreshing.  That's my type of language.  If they are making money per transaction, they probabliy end up even in terms of total dollars.  I'm not sure, but it is possible.  If folks use their Cash + card exclusively for all of their purchases due to the 2% and the 1% bonus, they can still turn a profit.  I would like to see the numbers.

Gas: Discover It, Penfed Platinum Rewards x2, Chase freedom, Citi TYP
Plane tickets: CSP
Groceries: AMEX BCP, Penfed Platinum Rewards,Citi TYP
Clothes: Express, Amex BCP, Discover IT
Amazon: Citi Forward, Cash +
Restaurants: Citi Forward, Chase Freedom, Discover IT, CSP
Hotels and other travel: Discover Escape, CSP
Movies: BofA travel rewards visa signature(fandango), Discover IT, Citi Forward, Freedom
Bars, clubs, tomfoolery: CSP, Citi Forward, Discover IT, Freedom
Balance transfers: Kroger 123 rewards
Bill Pay: Chase Ink Plus, Citi Forward,
Everyday spending: Bofa Accelerated cash rewards amex, Discover Escape
Established Contributor
Posts: 652
Registered: ‎12-12-2012
0

Re: Cash + Holders, let's fight for our rewards!

As greedy as banks are, are we sure that they are dumb enough to launch a product uncapped with so much high potential spending without doing their due diligence to make sure it could be profitable?  They didn't anticipate that the bill pay would be a hot button category and potentially abused?  My argument is weak only if US Bank is in fact losing money.  I don't think that is the case.

Gas: Discover It, Penfed Platinum Rewards x2, Chase freedom, Citi TYP
Plane tickets: CSP
Groceries: AMEX BCP, Penfed Platinum Rewards,Citi TYP
Clothes: Express, Amex BCP, Discover IT
Amazon: Citi Forward, Cash +
Restaurants: Citi Forward, Chase Freedom, Discover IT, CSP
Hotels and other travel: Discover Escape, CSP
Movies: BofA travel rewards visa signature(fandango), Discover IT, Citi Forward, Freedom
Bars, clubs, tomfoolery: CSP, Citi Forward, Discover IT, Freedom
Balance transfers: Kroger 123 rewards
Bill Pay: Chase Ink Plus, Citi Forward,
Everyday spending: Bofa Accelerated cash rewards amex, Discover Escape
Established Contributor
Posts: 652
Registered: ‎12-12-2012
0

Re: Cash + Holders, let's fight for our rewards!


bs6054 wrote:

FutureBillionaire wrote:

I think it is laughable for these banks to cry poverty.  They are making a killing on swipe fees.  Also, some people are probably paying annual fees, interest, and other fees.  I find it hard to believe that the product in their current form is losing them money. I think they believe that they can have even better margins, so they decided to make the changes. 

 

My biggest qualm is that they changed too many things at once.  As an aspiring business owner, I respect their desire to make profits.  I just don't see a problem with offering a product that is far superior to others so I can build customer loyalty and hopefully increase my number of customers.  I dislike the mentality of capitalism that we need to cut corners and give customers less all in the name of profit. 


 

 

What about the BCP cap?  Do you think there wasn't a problem there?


I hated the BCP change.  But, I didn't complain because they didn't totally destroy the rewards.  They let us keep the 6%, but added the cap.  I'm ok with that.  I've said this whole time that I would be ok with the changes if they kept the categories and added caps.  This card is essentially the same as the others out there on the market.  They can make money with this card, and so can we for that matter, if they keep the categories and add the caps.  I would be more apt to use this card for the 1 and 2 percent categories if they kept all of the existing categories and implemented caps.  I would have to because I wouldn't be able to charge as many bills to the card.  I will admit that I didn't carry this card before because I always put all of my bills on there throughout the month.  I'm going to use it for smaller purchases now, which will help them get swipe fees.  Overall, I won't put as much cash through it though.    They will get 2% of very small purchases from me now.

Gas: Discover It, Penfed Platinum Rewards x2, Chase freedom, Citi TYP
Plane tickets: CSP
Groceries: AMEX BCP, Penfed Platinum Rewards,Citi TYP
Clothes: Express, Amex BCP, Discover IT
Amazon: Citi Forward, Cash +
Restaurants: Citi Forward, Chase Freedom, Discover IT, CSP
Hotels and other travel: Discover Escape, CSP
Movies: BofA travel rewards visa signature(fandango), Discover IT, Citi Forward, Freedom
Bars, clubs, tomfoolery: CSP, Citi Forward, Discover IT, Freedom
Balance transfers: Kroger 123 rewards
Bill Pay: Chase Ink Plus, Citi Forward,
Everyday spending: Bofa Accelerated cash rewards amex, Discover Escape
Senior Contributor
Posts: 4,694
Registered: ‎02-23-2011
0

Re: Cash + Holders, let's fight for our rewards!


FutureBillionaire wrote:

As greedy as banks are, are we sure that they are dumb enough to launch a product uncapped with so much high potential spending without doing their due diligence to make sure it could be profitable?  They didn't anticipate that the bill pay would be a hot button category and potentially abused?  My argument is weak only if US Bank is in fact losing money.  I don't think that is the case.


Yes, big banks are pretty dumb.

 

Seriously, they are always reactive, and can't implement any kind of forward thinking at all.  Take Citibank, for example.  Text book case of a very large global bank making some of the dumbest and most stupid decisions we've ever seen.

 

 

Established Contributor
Posts: 652
Registered: ‎12-12-2012
0

Re: Cash + Holders, let's fight for our rewards!


Open123 wrote:

FutureBillionaire wrote:

As greedy as banks are, are we sure that they are dumb enough to launch a product uncapped with so much high potential spending without doing their due diligence to make sure it could be profitable?  They didn't anticipate that the bill pay would be a hot button category and potentially abused?  My argument is weak only if US Bank is in fact losing money.  I don't think that is the case.


Yes, big banks are pretty dumb.

 

Seriously, they are always reactive, and can't implement any kind of forward thinking at all.  Take Citibank, for example.  Text book case of a very large global bank making some of the dumbest and most stupid decisions we've ever seen.

 

 


I guess this is why we have to bail out banks with tax payer money.  We can agree to disagree Open.  I respect your views and I think you are very articulate.  I enjoy a good debate. 

Gas: Discover It, Penfed Platinum Rewards x2, Chase freedom, Citi TYP
Plane tickets: CSP
Groceries: AMEX BCP, Penfed Platinum Rewards,Citi TYP
Clothes: Express, Amex BCP, Discover IT
Amazon: Citi Forward, Cash +
Restaurants: Citi Forward, Chase Freedom, Discover IT, CSP
Hotels and other travel: Discover Escape, CSP
Movies: BofA travel rewards visa signature(fandango), Discover IT, Citi Forward, Freedom
Bars, clubs, tomfoolery: CSP, Citi Forward, Discover IT, Freedom
Balance transfers: Kroger 123 rewards
Bill Pay: Chase Ink Plus, Citi Forward,
Everyday spending: Bofa Accelerated cash rewards amex, Discover Escape
Advertiser Disclosure: The listings that appear on myFICO are from companies from which myFICO receives compensation, which may impact how and where products appear on myFICO (including, for example, the order in which they appear). myFICO does not review or include all companies or all available products.
† Credit cards for FICO Score ranges: The score ranges are guidelines based on actual applicant approvals and having a FICO Score in a particular range does not guarantee you will be approved for credit cards recommended in that range.

Copyright ©2001-2015 Fair Isaac Corporation. All rights reserved.   | Terms of Use | Privacy Policy | Sitemap

IMPORTANT INFORMATION: All FICO® Score products made available on myFICO.com include a FICO® Score 8, along with additional FICO® Score versions. Your lender or insurer may use a different FICO® Score than the versions you receive from myFICO, or another type of credit score altogether. Learn more

FICO, myFICO, Score Watch, The score lenders use, and The Score That Matters are trademarks or registered trademarks of Fair Isaac Corporation. Equifax Credit Report is a trademark of Equifax, Inc. and its affiliated companies. Many factors affect your FICO Score and the interest rates you may receive. Fair Isaac is not a credit repair organization as defined under federal or state law, including the Credit Repair Organizations Act. Fair Isaac does not provide "credit repair" services or advice or assistance regarding "rebuilding" or "improving" your credit record, credit history or credit rating. FTC's website on credit.