topic Re: Verizon credit card question in Credit Cards

Verizon Visa rewards (math nerd help needed)

MrDisco99 — Fri, 04 Feb 2022 15:16:35 GMT

Hi all

I've got my Verizon Visa earning 2% cash back on my Verizon bill every month, which is nice.

However, it ocurred to me that if I apply my Verizon dollars towards my bill as soon as I get them, my next payment will be lower and earn me less rewards.

Does it make more sense to hold on to Verizon dollars and use them on something big (like a whole bill or phone upgrade or something) or do I not come out ahead either way?

Would love to see the math explained as well.

Re: Verizon Visa rewards (math nerd help needed)

bigseegar — Fri, 04 Feb 2022 18:24:16 GMT

Of course it makes way more sense to build it up than to use it every time you get a dollar or two

Re: Verizon Visa rewards (math nerd help needed)

Kforce — Fri, 04 Feb 2022 19:23:06 GMT

Don't have a Verizon Visa so just some thoughts.

Rewards might be earned on charges to you and not be affected by credit from rewards. Would need to have real numbers from statements for a couple months to see what is happening. If they are really using the bottom line and subtracting rewards before calculating you would be getting 1.96% reward not 2.00%. The only CC I know that punishes one for getting statement credit is the Citi Double Cash.

PS: The numbers would be the same if every month or saved up if redeemed as a statement credit. If you can get gift cards, check or another full value out side of statement credit you gain 4c per 100 dollars. Need info from other Verizon card holders that knows if they include the rewards or not in calculations.

Re: Verizon Visa rewards (math nerd help needed)

MrDisco99 — Fri, 04 Feb 2022 19:35:57 GMT

@Kforce wrote:
Don't have a Verizon Visa so just some thoughts.
Rewards might be earned on charges to you and not be affected by credit from rewards. Would need to have real numbers from statements for a couple months to see what is happening. If they are really using the bottom line and subtracting rewards before calculating you would be getting 1.96% reward not 2.00%. The only CC I know that punishes one for getting statement credit is the Citi Double Cash.

PS: The numbers would be the same if every month or saved up if redeemed as a statement credit. If you can get gift cards, check or another full value out side of statement credit you gain 4c per 100 dollars. Need info from other Verizon card holders that knows if they include the rewards or not in calculations.

Yeah the way the rewards works is you get Verizon dollars, which can be applied toward your bill or other Verizon purchases. So if I apply my rewards towards my bill, it reduces the bill amount, which reduces how much I earn on the next card statement.

Of course, same goes if I save them up and use it to pay an entire bill... my next card statement would have zero rewards earned from my bill payment because there isn't one.

The more I ponder this and try to spreadsheet this out, the more it seems like it's a wash either way.

EDIT: Actually it seems like I may come out ahead using rewards every month as the increased monthly discount more than makes up for the reduced rewards earning. Of course my math could be wrong. Maybe one of you accounting/finance nerds could help me out.

Re: Verizon Visa rewards (math nerd help needed)

Kforce — Fri, 04 Feb 2022 19:43:09 GMT

The Math:

Bill #1 : $100, earn 2% rewards, $2.00

Bill#2: $100 - Credit of $2 from rewards last month = Bill for $98

Bill #2: Rewards = (98*0.02)=1.96

Rewards/Spend = Reward % = (1.96/100) = 1.96%

* This is assuming things not in evidence as they say *

* They might be removing cash back credits before calculating current rewards *

Re: Verizon Visa rewards (math nerd help needed)

K-in-Boston — Fri, 04 Feb 2022 20:37:40 GMT

🧮 ready!

I think the rest of you figured this out, but if rewards are earned on purchases (not payments, or a combination like Double Cash) and they do not deduct rewards for applying a credit (it acts like a payment made, not like a merchant credit for a return or something), then the order and manner you do this in makes no difference at all.

In addition to losing out a fraction of a percent by using a statement credit rather than a payment that earns the other 1% with Double Cash, a similar scenario is presented with the Amazon store card. If you apply your rewards toward a new purchase at Amazon, you don't earn the 5% cash back on that portion of the purchase, but if you instead apply it as a statement credit you always get the full 5% on all purchases.

Re: Verizon Visa rewards (math nerd help needed)

Kforce — Fri, 04 Feb 2022 20:50:20 GMT

With an even $100 a month (monthly vs saving)

Save a few cents waiting a few months for rewards.

Have a couple extra dollars every month to invest, save, etc.

Re: Verizon Visa rewards (math nerd help needed)

Anonymous — Fri, 04 Feb 2022 23:36:22 GMT

@Kforce wrote:

With an even $100 a month (monthly vs saving)
Save a few cents waiting a few months for rewards.
or
Have a couple extra dollars every month to invest, save, etc.

So using these scenarios and thinking about after month 5: With the use each month, after month 5 you have paid 492.12 + have 1.96 reward dollars

The other way you have paid 492 and have 1.84 reward dollars left. So the 12c less in reward dollars offsets the 12c paid in cash.

My initial thought had been that they should be exactly the same, but I convinced myself otherwise by doing something similar to the above but considering just two months. In the use reward scenario, I spend $198 and have 1.96 reward dollars. In the other, I spend $200 and have 4 reward dollars, and the amounts don't match (4c better off waiting). But once I use the reward dollars, as in the example above, that cancels out.

Re: Verizon Visa rewards (math nerd help needed)

Kforce — Sat, 05 Feb 2022 00:29:50 GMT

Yes they are equal, however you can invest the monthly.

$2.00/month @ 0.55% and an extra $2.00 month = ~12c over 5 months.

Re: Verizon Visa rewards (math nerd help needed)

Duke_Nukem — Sat, 05 Feb 2022 16:40:31 GMT

@Kforce wrote:
The Math:

Bill #1 : $100, earn 2% rewards, $2.00
Bill#2:   $100 - Credit of $2 from rewards last month = Bill for $98
                Bill #2: Rewards = (98*0.02)=1.96
                 Rewards/Spend = Reward % = (1.96/100) = 1.96%

* This is assuming things not in evidence as they say *
* They might be removing cash back credits before calculating current rewards *

Don't forget to add the $5 Verizon UP credit you get each month that can be transferred to Verizon Dollars since you have this card (if you choose that option).

So you would actually be cashing in your monthly 2% as well as $5. Using your $100 example:

Bill #1 : $100, earn 2% rewards, $2.00

Bill#2: $100 - Credit of $2 from rewards last month + $5 UP = Bill for $93

Bill #2: Rewards = (93*0.02)=1.86

Rewards/Spend = Reward % = (1.86/100) = 1.86%

Re: Verizon Visa rewards (math nerd help needed)

ptatohed — Sun, 06 Feb 2022 06:56:00 GMT

Unlike Citi DC which gives you 1% CB on your payment, hence making it a 1.99% card if you take the statement credit, I don't believe other CB cards penalize you for taking statement credit. A 2% CB card should give you 2% on your spend/charges. If the Verizon bill is $100, that's $100 of spend and should be $2 CB. You can then apply last months $2 CB to that $100 bill but the CB should still be $2 (Verizon Dollars).

Like others have said, we'd need to see a Verizon statement to confirm. But my hunch is it's a full 2% CB. But my hunches have often been wrong!

Re: Verizon Visa rewards (math nerd help needed)

KingReem — Sun, 06 Feb 2022 07:50:54 GMT

Verizon dollars are soon to be a thing of the past so I've read somewhere else I haven't been receiving any since maybe the middle of last year im unsure if it's the same with anyone else

Re: Verizon Visa rewards (math nerd help needed)

FinStar — Mon, 07 Feb 2022 02:55:50 GMT

@KingReem wrote:
Verizon dollars are soon to be a thing of the past so I've read somewhere else I haven't been receiving any since maybe the middle of last year im unsure if it's the same with anyone else

Can you cite or provide the source @KingReem? I've had no issue in receiving them at all -- very much like clockwork 🤷‍♂️

Re: Verizon Visa rewards (math nerd help needed)

KingReem — Mon, 07 Feb 2022 05:49:24 GMT

@FinStar I see what they did here so if you have Verizon service but dont have the card you no longer receive device dollars. But if. You have the card and Verizon service you get the device dollars which are converted into Verizon dollars

Re: Verizon Visa rewards (math nerd help needed)

Duke_Nukem — Mon, 07 Feb 2022 20:48:17 GMT

@ptatohed wrote:
Unlike Citi DC which gives you 1% CB on your payment, hence making it a 1.99% card if you take the statement credit, I don't believe other CB cards penalize you for taking statement credit. A 2% CB card should give you 2% on your spend/charges. If the Verizon bill is $100, that's $100 of spend and should be $2 CB. You can then apply last months $2 CB to that $100 bill but the CB should still be $2 (Verizon Dollars).

Like others have said, we'd need to see a Verizon statement to confirm. But my hunch is it's a full 2% CB. But my hunches have often been wrong!

The Verizon card doesn't receive the rewards as "statement credit" to be used towards anything inside the Synchrony Verizon Card account. Things such as reducing the card's payment amount or purchase of gift cards within Synchrony are unavailable.

All rewards are transferred to your Verizon account and lumped into a Verizon Dollars account at Verizon (not the Synchrony card account). To use your Verizon Dollars means you will spend it within Verizon, of which one of the options is to apply the Verizon Dollars towards the monthly bill. When used towards the bill, the amount billed on the Verizon Card is reduced which in turn reduces the amount of cashback earned since less is charged on the card.

Verizon credit card question

Azza — Wed, 16 Feb 2022 04:56:06 GMT

What is the percentage returned for paying my Verizon bill with the Synchrony Verizon card?

If it's 2%, then it makes more sense to use any other card instead of opening a line solely for this, I think.

Thanks.

sidenote: Why is it if it is not a hotel or airline card are most of the "store-based" perks typically 2%? Citi Cotsco I'm lookin at you...

Re: Verizon credit card question

AlanGJP — Wed, 16 Feb 2022 05:51:10 GMT

My understanding is that the card earns rewards (Example being 4% back in the form of Verizon cash on gas) which you then use to pay all or a portion of your Verizon bill. I don't believe you earn more (if even) than the 1% base if you use the card to pay your bill. (Correct me if I'm wrong)

Re: Verizon credit card question

FinStar — Wed, 16 Feb 2022 05:54:18 GMT

@AlanGJP wrote:
My understanding is that the card earns rewards (Example being 4% back in the form of Verizon cash on gas) which you then use to pay all or a portion of your Verizon bill. I don't believe you earn more (if even) than the 1% base if you use the card to pay your bill. (Correct me if I'm wrong)

The rewards structures are discussed upthread.

@Azza - paying your Verizon bill will earn 2% as explained in the discussion above.

Re: Verizon Visa rewards (math nerd help needed)

arunkumarmm — Wed, 16 Feb 2022 07:20:47 GMT

@MrDisco99 wrote:
Hi all

I've got my Verizon Visa earning 2% cash back on my Verizon bill every month, which is nice.

However, it ocurred to me that if I apply my Verizon dollars towards my bill as soon as I get them, my next payment will be lower and earn me less rewards.

Does it make more sense to hold on to Verizon dollars and use them on something big (like a whole bill or phone upgrade or something) or do I not come out ahead either way?

Would love to see the math explained as well.

I guess you can use those device dollars to get gift cards. If there is a gift card brand in that list that you use, you can get that and won't lose your CB on the bill.

Not sure what advantage you have on using the Verizon visa. I use PPKey + MCP for 5% on my bill, its a CB and dont have to deal with Device dollars. I used to add up the device dollar with the VerizonUp reward. Now they have stopped it but getting $5 Amazon Gift card instead, does not reduce the value for me

Re: Verizon credit card question

EAJuggalo — Wed, 16 Feb 2022 12:49:02 GMT

@Azza wrote:
What is the percentage returned for paying my Verizon bill with the Synchrony Verizon card?

If it's 2%, then it makes more sense to use any other card instead of opening a line solely for this, I think.

This is also the only credit card that can be used and retain the Verizon $10/line autopay discount. There is a workaround with PayPal Key, but otherwise it is debit/checking account only.