topic Create your own rewards categories credit card. in Credit Cards

Create your own rewards categories credit card.

Anonymous — Sat, 11 Jun 2016 08:45:03 GMT

As far as I know, a card like this doesn't currently exist. I do however feel it would be pretty darn cool if it did, and I think the perceived value to the customer would actually exceed the theoretical value thus not making it unprofitable for the creditor. In a nutshell, the creditor could provide a list of however many different categories that we're all familiar with such as gas, groceries, restaurants, home improvement stores, movies, amazon, etc. Then the applicant could pick say any 3 categories and get X percent back on them (I don't know, 3%?) but 0% back on "all other" purchases. I'm sure the numbers could be played with to make it worthwhile for the creditor.

Anyway, I just think it would be a cool concept that the applicant actually gets to choose the categories that personally suit them best. I would think something like this would catch on since it's able to be customized and tailored to the individual. Any thoughts on some sort of variation of this?

Re: Create your own rewards categories credit card.

noobody — Sat, 11 Jun 2016 09:50:03 GMT

Cash+?

Re: Create your own rewards categories credit card.

coldnmn — Sat, 11 Jun 2016 10:25:12 GMT

US Bank Cash+

Re: Create your own rewards categories credit card.

coldnmn — Sat, 11 Jun 2016 10:28:04 GMT

https://cashplus.usbank.com/site/how_it_works

Re: Create your own rewards categories credit card.

Anonymous — Sat, 11 Jun 2016 10:47:13 GMT

I need something for drag racing, motors and such. That would be cool. Automotive category.

Re: Create your own rewards categories credit card.

kdm31091 — Sat, 11 Jun 2016 12:17:56 GMT

Cash+ is about the only card that does it. It started off with broader categories but they have tightened up over time. I think many years ago the Chase Freedom did something similar but it was 3 percent.

I just think most regular consumers don't really want to be bothered, and pay little attention to these things, so opting in, rotating categories, choose your own, etc never seem to catch on with the public well.

Re: Create your own rewards categories credit card.

Anonymous — Sat, 11 Jun 2016 12:37:03 GMT

@Anonymous wrote:
I need something for drag racing, motors and such. That would be cool. Automotive category.

This is me. I need a card for car/motorcycle parts, WalMart, and cell phone/utilities. And I need them all to give me at least 10% back!

Re: Create your own rewards categories credit card.

Anonymous — Sat, 11 Jun 2016 13:58:08 GMT

I like this idea...to add, it would also be great to have a system where I can hit the love button everyday for approved increases without disturbing the credit line increase god and be fearful of an AA.

Re: Create your own rewards categories credit card.

RonM21 — Sat, 11 Jun 2016 16:44:28 GMT

Nice idea. It certainly would allow for it to be customized to your preferred habits with the card.

Re: Create your own rewards categories credit card.

Anonymous — Sat, 11 Jun 2016 20:04:43 GMT

It already exists... in Canada anyway. It's called the Tangerine Money-Back Credit Card (it's a Mastercard) and it has 10 different categories to pick from that offer 2% CB automatically every month (2% is a lot in Canada as the card competition isn't quite as stiff). You get 1% everywhere else and you can pick 2 categories for the 2%, but if you're a regular banking customer with them you get a bonus 3rd category. They are a virtual/online bank (formerly ING Direct, now owned by Scotiabank). You can even have the CB go automatically into a savings acct every month. You can also change your categories every 90 days, and many things are covered but not everything. There is no category that covers the Apple store or Costco, for example. The categories include gas, recurring bill payments (pre-auth ones), grocery stores, home improvement stores, drug stores, entertainment, hotels/motels, public transport, restaurants, and furniture. An electronics store & a warehouse or club store category would be nice. Maybe they will come later. Anyway, it's a pretty cool card. It's even orange and partially see-through, so it looks nice too (although some find that look to be ugly).

Re: Create your own rewards categories credit card.

Anonymous — Sat, 11 Jun 2016 20:07:51 GMT

Huntington Voice does this as wel.l

People just don't care. Too much work.

Re: Create your own rewards categories credit card.

kdm31091 — Sat, 11 Jun 2016 20:14:31 GMT

@Anonymous wrote:
Huntington Voice does this as wel.l

People just don't care. Too much work.

Oh true, I forgot about that option.

The general public just isn't interested in this kind of thing. Plenty of people aren't even aware of their rewards program. Although Freedom is a popular card for example there are many who use it without even being cognizant of the 5% categories existing. So the number of people who are going to hop online and opt into categories is pretty low (unless they are interested in credit cards).

Re: Create your own rewards categories credit card.

Anonymous — Sat, 11 Jun 2016 20:13:14 GMT

Amex SimplyCash. Sort of. The 3% category allows you to choose from a list of several like shipping, restaurants, travel, etc.

Re: Create your own rewards categories credit card.

Anonymous — Sat, 11 Jun 2016 20:17:12 GMT

@kdm31091 wrote:
@Anonymous wrote:
Huntington Voice does this as wel.l

People just don't care. Too much work.
Oh true, I forgot about that option.

The general public just isn't interested in this kind of thing. Most people aren't even aware of their rewards program. Although Freedom is a popular card for example there are many who use it without even being cognizant of the 5% categories existing. So the number of people who are going to hop online and opt into categories is pretty low (unless they are interested in credit cards).

Yes, since Cash Plus is still going, I assume there are enough people who sign up for it, and then use it for everything, thus making it profitable for US Bank. And I guess similarly for cards like BCP. Even with the AF, I would think maxing out groceries and using it for nothing else would cost Amex money

Re: Create your own rewards categories credit card.

Anonymous — Sun, 12 Jun 2016 03:42:13 GMT

Interesting feedback thus far. It seems there are a few options out there already. I don't really understand the "too much work" comments though? I don't get what the "work" is? I just find that the majority of CB cards out there always seem to have something that I don't need. Like restaurants for example. I eat out once or twice a year, TOPS. So when I see a restaurant category to me that's worthless and it would just be nice if the card could be tailored to what I specifically want. I also think that people would like to know that their card is customized precisely to what matters most to them.

Re: Create your own rewards categories credit card.

Anonymous — Sun, 12 Jun 2016 04:55:14 GMT

@Anonymous wrote:
Interesting feedback thus far. It seems there are a few options out there already. I don't really understand the "too much work" comments though? I don't get what the "work" is? I just find that the majority of CB cards out there always seem to have something that I don't need. Like restaurants for example. I eat out once or twice a year, TOPS. So when I see a restaurant category to me that's worthless and it would just be nice if the card could be tailored to what I specifically want. I also think that people would like to know that their card is customized precisely to what matters most to them.

Tbe small amount of work is signing up every quarter, which seems to be the norm for cards with potentially revolving categories. Then, for those with many cards, the work is remembering to use that card with the appropriate categories.

I think that in general what you suggest (and the cards that approximate it) may fall into a gap: those peoplr that care sufficiently about rewards will want to maximize rewards using several cards, potentially making the custom card unprofitable for the issuer by only using it in the enhanced reward categories, And those that don't care (perhaps because spend is relatively small anyway) just want to use one or two cards for everything and can't be bothered to choose categories.

Re: Create your own rewards categories credit card.

Anonymous — Sun, 12 Jun 2016 06:42:29 GMT

@Anonymous wrote:
@Anonymous wrote:
I need something for drag racing, motors and such. That would be cool. Automotive category.
This is me. I need a card for car/motorcycle parts, WalMart, and cell phone/utilities. And I need them all to give me at least 10% back!

Lol. For sure. My cash back would be huge between my motorcycles, hot rods and my truck.

Re: Create your own rewards categories credit card.

Anonymous — Mon, 13 Jun 2016 00:26:34 GMT

@Anonymous wrote:
Tbe small amount of work is signing up every quarter, which seems to be the norm for cards with potentially revolving categories. Then, for those with many cards, the work is remembering to use that card with the appropriate categories.

I think that in general what you suggest (and the cards that approximate it) may fall into a gap: those peoplr that care sufficiently about rewards will want to maximize rewards using several cards, potentially making the custom card unprofitable for the issuer by only using it in the enhanced reward categories, And those that don't care (perhaps because spend is relatively small anyway) just want to use one or two cards for everything and can't be bothered to choose categories.

I feel like a lot of people do this already... using cards like the Freedom or Discover for their revolving categories but using another card as their "daily driver." I don't really see the type of card I'm suggesting being all too different than these two cards I've just mentioned. Not giving cash back on "all other purchases" I thought would be a difference that could end up being a win-win for both the creditor and the customer (that doesn't plan on using it for non-custom-category purchases).