topic Re: New 3% cashback card in Credit Cards

New Crypto (up to 3%) cashback card

TryItAgain — Thu, 14 Jan 2021 17:02:19 GMT

I just got an email to sign up for waitlist on a new Gemini 3% cashback card. Gemini is a crypto-currency broker similar to Coinbase but smaller. No clue on the terms but seems interesting anyway. Likely will pay 3% back in crypto from usd card spends but I'm fine with that.

https://www.gemini.com/credit-card/waitlist

That was the url from my email where I signed up, if anyone else jhears or knows anything please advise.

Re: New 3% cashback card

MisterWives — Thu, 14 Jan 2021 15:41:40 GMT

Interesting seems like a fun way to get rewards. Not sure how I feel about my cashback reward amount fluctuating in value lol

Re: New 3% cashback card

KJinNC — Thu, 14 Jan 2021 15:46:21 GMT

If you scroll to the bottom, I notice it says "... earn up to 3% ..." emphasis added. Very interested in learning more details when they're available. Thanks for posting!

Re: New 3% cashback card

MisterWives — Thu, 14 Jan 2021 15:55:49 GMT

@KJinNC wrote:
If you scroll to the bottom, I notice it says "... earn up to 3% ..." emphasis added. Very interested in learning more details when they're available. Thanks for posting!

Ah yes the good old marketing tactic of "Up to X" I have less hope for this card now

Re: New 3% cashback card

gregorius — Thu, 14 Jan 2021 16:34:52 GMT

Blockrize (crypto card startup) sent an email to their waitlist this morning that they've been acquired by Gemini (crypto exchange) - I bet this is the result. They were originally offering a 1% crypto card, and IIRC the 3% earnings they tout includes the appreciation of the various currencies you can choose to earn.

Re: New 3% cashback card

Andypanda — Thu, 14 Jan 2021 16:42:00 GMT

@MisterWives wrote:
Interesting seems like a fun way to get rewards. Not sure how I feel about my cashback reward amount fluctuating in value lol

I have tge CS platinum, i like investing my rewards, just unsure if I'm ready to invesin bitcoin.

Re: New 3% cashback card

Anonymous — Thu, 14 Jan 2021 17:26:37 GMT

I used to not like rewards cards for investment (because you would have to add funds to invest rewards), like the 2% cash back Fidelity card. But now that you can buy partial shares with no fee, these types of cards could become more popular.

This one is interesting. If they would have offered this card 4 years ago, it would be by far the best rewards card in the history of credit cards. But, not sure how long the bitcoin runup will go, even though it wouldn't bother me to read candlestick charts to see my rewards balance history.

Re: New 3% cashback card

wasCB14 — Thu, 14 Jan 2021 18:23:22 GMT

@Andypanda wrote:
@MisterWives wrote:
Interesting seems like a fun way to get rewards. Not sure how I feel about my cashback reward amount fluctuating in value lol
I have tge CS platinum, i like investing my rewards, just unsure if I'm ready to invesin bitcoin.

That's my take. I'll let cards influence where I invest (the brokerages), but I don't want them to influence my thinking on how I invest.

Re: New 3% cashback card

wasCB14 — Thu, 14 Jan 2021 18:37:21 GMT

@Anonymous wrote:
I used to not like rewards cards for investment (because you would have to add funds to invest rewards), like the 2% cash back Fidelity card. But now that you can buy partial shares with no fee, these types of cards could become more popular.

This one is interesting. If they would have offered this card 4 years ago, it would be by far the best rewards card in the history of credit cards. But, not sure how long the bitcoin runup will go, even though it wouldn't bother me to read candlestick charts to see my rewards balance history.

The process through which tax software electronically imports brokerage 1099 forms isn't perfect. Keep in mind that when you actually sell all those partial shares, it may take a long time to manually check your return's accuracy.

Less of a concern in tax-advantaged accounts.

Re: New 3% cashback card

Anonymous — Thu, 14 Jan 2021 18:54:02 GMT

@wasCB14 wrote:
@Anonymous wrote:
I used to not like rewards cards for investment (because you would have to add funds to invest rewards), like the 2% cash back Fidelity card. But now that you can buy partial shares with no fee, these types of cards could become more popular.

This one is interesting. If they would have offered this card 4 years ago, it would be by far the best rewards card in the history of credit cards. But, not sure how long the bitcoin runup will go, even though it wouldn't bother me to read candlestick charts to see my rewards balance history.
The process through which tax software electronically imports brokerage 1099 forms isn't perfect. Keep in mind that when you actually sell all those partial shares, it may take a long time to manually check your return's accuracy.

Less of a concern in tax-advantaged accounts.

Yeah, I haven't actually sold any of those shares. Hopefully my brokerages will handle it correctly on the tax statements.

I guess bitcoin investments from this card will have the same issues, if any. Nothing like getting a 1099 with your year-end rewards statement.

Re: New 3% cashback card

TheCreditCount — Fri, 15 Jan 2021 01:44:23 GMT

Up to 3% is suspiciously inexact.

Using the Fidelity Visa Signature at Fidelity just seems like the best no AF way to have your card rewards tied in an investment platform. Of course any 2% card's rewards can buy crypto on Robinhood or whatever. I can't imagine the regular rate will beat 2%.

Re: New 3% cashback card

RootDet — Tue, 27 Apr 2021 20:12:17 GMT

They announced it will be a mastercard backed by Webbank.

Just got an email with this url: https://www.gemini.com/blog/gemini-credit-card-to-launch-with-mastercard-as-network-partner

What do we know about this bank? Seems like they did more low-tier cards.

Re: New 3% cashback card

donotpassgo — Tue, 27 Apr 2021 20:45:24 GMT

We'll continue to see allot more about Webbank, surely. They're probably mostly known around here for their partnership with Petal, which also recently got a shot in the arm.

Webbank is all in on the fintech wave, which it bid in early on to large success. Not surprised to see them partner with Gemini, they're dynamic and experienced enough to be able to pull that stuff off.

Don't forget Webbank has long-held partnerships with some giants, such as paypal. They're not new to the space, to say the least.

Re: New 3% cashback card

TheBoondocks — Tue, 27 Apr 2021 22:02:41 GMT

Let's just say this is like a points card lol...

Re: New 3% cashback card

RootDet — Wed, 28 Apr 2021 17:43:29 GMT

At the end of the day, any card is just a fancy points card. But this one has the added benefit where your rewards have a good chance to appreciate in value once they post to the gemini exchange. Also a decent way to auto-buy in and have some low-cost averaging in some cryptos depending on how much you run through it each month.

Re: New 3% cashback card

Citylights18 — Thu, 29 Apr 2021 04:01:44 GMT

@Anonymous wrote:
I used to not like rewards cards for investment (because you would have to add funds to invest rewards), like the 2% cash back Fidelity card. But now that you can buy partial shares with no fee, these types of cards could become more popular.

This one is interesting. If they would have offered this card 4 years ago, it would be by far the best rewards card in the history of credit cards. But, not sure how long the bitcoin runup will go, even though it wouldn't bother me to read candlestick charts to see my rewards balance history.

I own some bitcoin. Bitcoin is like the McDonald's of cryptocurrencies. Its everywehre but its not where you go to make the the real money. Its becoming more of benchmark for the overall coin market like the S&P 500 for stocks. You can look at the S&P and by doing so can read what the overall trading day is going to look like and for crypto bitcoin serves the same function.

Obviously you can trade the price of a coin against a dollar. But you can trade the price of a coin relative to bitcoin. That limits downside risk because if bitcoin is down 20% the coin might be down 22% so realtive to bitcoin its only down a couple of percent. If long term that coin goes up 10x and the value in the same time frame for Bitcoin is up 2x then you have a 500% gain overall with more limited risks than trading a coin straight against a dollar. Only really Bitcoin and Ethererum can be used as benchmark exchange rates like this.

As to the crypto earning cards upon investigation I've opted to just stick with traditional rewards cards because of reliable earn rates of 3x or 5x that can then be multipled with transfer partners. I can easily get 10% or more out of the travel points compared to 1-3% with a crypto rewards card. To use crypto rewards elsewhere you'll have to pay fees to convert first to another currency then to get them off the exchange.

Re: New 3% cashback card

Anonymous — Thu, 29 Apr 2021 08:48:58 GMT

I can't discuss the merits of crypto because I'm not an expert.

Due to accounting rules you may have to report every time you receive rewards in crypto as ordinary income, then you have to deal with capital gains or losses when you transact the bitcoin.

The law is not yet clear on this. Typically credit cards rewards are treated as discounts or rebates and are usually not taxable, but the rules governing crypto state that every single crypto transaction has to be documented no matter the source or the amount of the transaction and reported to the IRS via form Schedule 1 1040 for the receipt of the crypto and Form 8949 when you transact it. I have an accounting degree but taxes are not my area of expertise. You should consult a tax professional before taking the word of a for profit credit card company. To me this seems like a grey area unless someone else here can provide insight.

Re: New Crypto (up to 3%) cashback card

woodyman100 — Fri, 30 Apr 2021 00:23:45 GMT

I have developed another addiction, Crypto. Now my 2 addictions are converging.😎