US Bank Cash + Restaurants category downgraded to 2% next quarter...

[Anonymous]

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@longtimelurker wrote:

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@14Fiesta wrote:

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@yfan wrote:

Basically, no credit card company can sustain paying more than 2% on any given category with no annual fee forever.

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Except Discover and Chase, and in Discovers case they charge a higher swipe fee to make up for it.

I'd mention Sallie Mae too but I don't think that card has been around a long time yet.

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Right, I think more that no cc can offer more than 2% UNCAPPED forever without an AF or equivalent (BC's threshold for example).   The hope is that enough people use the card in other categories to make money, and even if they don't, total exposure is limited (e.g. to $300 in the case of Freedom and Discover IT)

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What about the OBC.

[mongstradamus]

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@Anonymous wrote:

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@longtimelurker wrote:

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@14Fiesta wrote:

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@yfan wrote:

Basically, no credit card company can sustain paying more than 2% on any given category with no annual fee forever.

---

Except Discover and Chase, and in Discovers case they charge a higher swipe fee to make up for it.

I'd mention Sallie Mae too but I don't think that card has been around a long time yet.

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Right, I think more that no cc can offer more than 2% UNCAPPED forever without an AF or equivalent (BC's threshold for example).   The hope is that enough people use the card in other categories to make money, and even if they don't, total exposure is limited (e.g. to $300 in the case of Freedom and Discover IT)

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What about the OBC.

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It got abused because it was uncapped that why there were mass shutdowns ?

[Anonymous]

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@mongstradamus wrote:

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@Anonymous wrote:

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@longtimelurker wrote:

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@14Fiesta wrote:

---

@yfan wrote:

Basically, no credit card company can sustain paying more than 2% on any given category with no annual fee forever.

---

Except Discover and Chase, and in Discovers case they charge a higher swipe fee to make up for it.

I'd mention Sallie Mae too but I don't think that card has been around a long time yet.

---

Right, I think more that no cc can offer more than 2% UNCAPPED forever without an AF or equivalent (BC's threshold for example).   The hope is that enough people use the card in other categories to make money, and even if they don't, total exposure is limited (e.g. to $300 in the case of Freedom and Discover IT)

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What about the OBC.

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It got abused because it was uncapped that why there were mass shutdowns ?

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Yep!

[longtimelurker]

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@Anonymous wrote:

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@mongstradamus wrote:

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@Anonymous wrote:

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@longtimelurker wrote:

---

@14Fiesta wrote:

---

@yfan wrote:

Basically, no credit card company can sustain paying more than 2% on any given category with no annual fee forever.

---

Except Discover and Chase, and in Discovers case they charge a higher swipe fee to make up for it.

I'd mention Sallie Mae too but I don't think that card has been around a long time yet.

---

Right, I think more that no cc can offer more than 2% UNCAPPED forever without an AF or equivalent (BC's threshold for example).   The hope is that enough people use the card in other categories to make money, and even if they don't, total exposure is limited (e.g. to $300 in the case of Freedom and Discover IT)

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What about the OBC.

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It got abused because it was uncapped that why there were mass shutdowns ?

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Yep!

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My post talks about the threshold on BC, which is the equivalent of an annual fee  (on the first $6,500 you get a lower rate than you would get on other cards)

[weehoo]

My OBC is still kickin, after i met minimum spend i only spend less then $1.5k a month now. Still cashed out all my rewards just in case though.