topic Re: Signature/Platinum in Credit Cards

Signature/Platinum

Anonymous — Fri, 16 Nov 2012 01:23:06 GMT

I was wondering why some (Visa) cards are issued as Signature and some as Platinum. Is there some advantage to the bank for example not to have signature. Looking at my Visas in order of decreasing CL (highest is 30K, lowest is 15K)

Capital One No Hassle, platinum,

Chase Amazon, Signature,

Penfed, Platinum

Capital One Plat, platinum

Citi AA Visa,, Signature

US Bank Cash Plus, Signature

So it doesn't seem related to CL or when I got the card (Penfed and US Bank in the last two weeks for example). And also not just the issuer, as Cap One does have signature cards as well. (Although it looks like Penfed doesn't).

Any ideas?

Re: Signature/Platinum

HiLine — Fri, 16 Nov 2012 01:50:05 GMT

That's a great question. I'm curious about this too. When I applied for a BofA card through my banking associate, he said I would likely be approved for a Visa Signature as a preferred customer. I thought this was roughly the standard for all creditors, but clearly, if a creditor approves a 15k limit, you must be a great customer with them too.

Re: Signature/Platinum

Anonymous — Fri, 16 Nov 2012 04:19:22 GMT

@Anonymous wrote:

I was wondering why some (Visa) cards are issued as Signature and some as Platinum. Is there some advantage to the bank for example not to have signature. Looking at my Visas in order of decreasing CL (highest is 30K, lowest is 15K)

Capital One No Hassle, platinum,
Chase Amazon, Signature,
Penfed, Platinum
Capital One Plat, platinum
Citi AA Visa,, Signature
US Bank Cash Plus, Signature

So it doesn't seem related to CL or when I got the card (Penfed and US Bank in the last two weeks for example). And also not just the issuer, as Cap One does have signature cards as well. (Although it looks like Penfed doesn't).

Any ideas?

I think that the issuing bank probably has to pay a premium for the premium cards.

Much like a bank that offers cards with the PayPass feature in MC. PayPass is an optional feature. So I am sure that the issuer has to pay a premium in order to give their bank customers that option.

Visa's pecking order goes something like this: Visa Standard, Visa Gold, Visa Platinum, Visa Siggy

Re: Signature/Platinum

Anonymous — Fri, 16 Nov 2012 04:32:31 GMT

I have heard that the banks rake in higher swipe fees for Visa Signature cards than for regular Visas, so there's a benefit for them to issuing Signature cards.

Re: Signature/Platinum

Revelate — Fri, 16 Nov 2012 04:36:29 GMT

@Anonymous wrote:
I have heard that the banks rake in higher swipe fees for Visa Signature cards than for regular Visas, so there's a benefit for them to issuing Signature cards.

Actually it's a higher merchant fee which goes on to the transaction network (Visa / MC in the World Elite case) is my understanding it.

Platinum used to mean something, but now it's basically the standard card. Signature has requirements (5K minimum CL) and also comes with additional benefits. That's really about it, other than some Signature cards don't get their CL's reported but fortunately there's fewer lenders that do that every year.

Re: Signature/Platinum

navigatethis12 — Fri, 16 Nov 2012 04:53:12 GMT

@Revelate wrote:
Actually it's a higher merchant fee which goes on to the transaction network (Visa / MC in the World Elite case) is my understanding it.

Platinum used to mean something, but now it's basically the standard card. Signature has requirements (5K minimum CL) and also comes with additional benefits. That's really about it, other than some Signature cards don't get their CL's reported but fortunately there's fewer lenders that do that every year.

True about platinum. I was watching a television show from some years back and the girl thought it was awesome her parents had a platinum visa. Visa Signature has become meaningless as well. 5000 is way to low for a supposedly high ranking card. It would be better to be 15 or 20. I would lose the ones I have, but oh well. Creditors give them out like nothing these days.

Not every issuer offers a Visa Signature card either. To me it does not really matter. Going over the limit is nice, but the concierge was worthless when I tested it.

Re: Signature/Platinum

Anonymous — Fri, 16 Nov 2012 06:03:42 GMT

@navigatethis12 wrote:
@Revelate wrote:
Actually it's a higher merchant fee which goes on to the transaction network (Visa / MC in the World Elite case) is my understanding it.

Platinum used to mean something, but now it's basically the standard card. Signature has requirements (5K minimum CL) and also comes with additional benefits. That's really about it, other than some Signature cards don't get their CL's reported but fortunately there's fewer lenders that do that every year.
True about platinum. I was watching a television show from some years back and the girl thought it was awesome her parents had a platinum visa. Visa Signature has become meaningless as well. 5000 is way to low for a supposedly high ranking card. It would be better to be 15 or 20. I would lose the ones I have, but oh well. Creditors give them out like nothing these days.

Not every issuer offers a Visa Signature card either. To me it does not really matter. Going over the limit is nice, but the concierge was worthless when I tested it.

Yes, things change! I remember, back in the 80's, I got my first Gold Mastercard, and some people were impressed. Don't think that would do so much these days.

But thanks everyone for the answers, good possible explanations for why Signature vs Platinum seems not to be too correlated with CL (over the $5K minimum for signature) or level of rewards.

Re: Signature/Platinum

RonDawg — Fri, 16 Nov 2012 06:59:14 GMT

@Anonymous wrote:
I have heard that the banks rake in higher swipe fees for Visa Signature cards than for regular Visas, so there's a benefit for them to issuing Signature cards.

I have heard that as well.

Re: Signature/Platinum

Anonymous — Fri, 16 Nov 2012 07:16:54 GMT

at our CU, standard visa is 2500, gold is 5000 and platinum is 10000

Re: Signature/Platinum

JonStur — Fri, 16 Nov 2012 11:26:13 GMT

@Anonymous wrote:

I was wondering why some (Visa) cards are issued as Signature and some as Platinum. Is there some advantage to the bank for example not to have signature. Looking at my Visas in order of decreasing CL (highest is 30K, lowest is 15K)

Capital One No Hassle, platinum,
Chase Amazon, Signature,
Penfed, Platinum
Capital One Plat, platinum
Citi AA Visa,, Signature
US Bank Cash Plus, Signature

So it doesn't seem related to CL or when I got the card (Penfed and US Bank in the last two weeks for example). And also not just the issuer, as Cap One does have signature cards as well. (Although it looks like Penfed doesn't).

Any ideas?

It's based on the level of service you receive. Signature Card holders are privy to a 24/7 Concierge service that should assist you in restaurant reservations, travel bookings, tickets at sporting events, and some may even assist in daycare for a pet while traveling. It also doesn't hurt to ask if there are any available discounts for travel or fine dining, and getting tickets to a popular or sold out event. Also unlike a Platinum card, there is no over limit fee.

Re: Signature/Platinum

Anonymous — Fri, 16 Nov 2012 13:55:36 GMT

Re: Signature/Platinum

webhopper — Fri, 16 Nov 2012 14:12:00 GMT

@Credit314 wrote:
+1

Credit314, I see from this post that you agree with the previous reply. Do you mind elaborating on your experiences? Detailed and constructive posts containing your experiences and thoughts are always helpful to others who may be going through the same thing! Thanks in advance for your additional input!

Re: Signature/Platinum

Anonymous — Fri, 16 Nov 2012 15:00:08 GMT

@JonStur wrote:

It's based on the level of service you receive. Signature Card holders are privy to a 24/7 Concierge service that should assist you in restaurant reservations, travel bookings, tickets at sporting events, and some may even assist in daycare for a pet while traveling. It also doesn't hurt to ask if there are any available discounts for travel or fine dining, and getting tickets to a popular or sold out event. Also unlike a Platinum card, there is no over limit fee.

That's an explanation of the difference between the type of cards. My question is what determines whether bank X issues user Y a signature or a platinum. From my original post in most cases ("most" only because some issuers don't have signature cards) it doesn't seem dependent on CL, which would be an obvious guess.

Re: Signature/Platinum

Anonymous — Fri, 16 Nov 2012 15:11:16 GMT

For the most part, when You are approved for a card above 5000 nowadays it will be a visa sig-however if you pass 5000 through credit limit increases, then most dont automatically convert, you usually need b to ask them to switch from platinum to visa signature.

Re: Signature/Platinum

trumpet-205 — Fri, 16 Nov 2012 15:29:36 GMT

@Anonymous wrote:
I think that the issuing bank probably has to pay a premium for the premium cards.

Much like a bank that offers cards with the PayPass feature in MC. PayPass is an optional feature. So I am sure that the issuer has to pay a premium in order to give their bank customers that option.

Visa's pecking order goes something like this: Visa Standard, Visa Gold, Visa Platinum, Visa Siggy

Issuing bank earn more swipe fee for Signature than Platinum. Same from Platimum vs Gold, etc.

But Signature offers the option to spend over your credit limit, so Signature is reserved for those with excellent credit.

Re: Signature/Platinum

Anonymous — Fri, 16 Nov 2012 16:01:38 GMT

@trumpet-205 wrote:
@Anonymous wrote:
I think that the issuing bank probably has to pay a premium for the premium cards.

Much like a bank that offers cards with the PayPass feature in MC. PayPass is an optional feature. So I am sure that the issuer has to pay a premium in order to give their bank customers that option.

Visa's pecking order goes something like this: Visa Standard, Visa Gold, Visa Platinum, Visa Siggy
Issuing bank earn more swipe fee for Signature than Platinum. Same from Platimum vs Gold, etc.

But Signature offers the option to spend over your credit limit, so Signature is reserved for those with excellent credit.

But as others have said, there are probably added costs as well. What drove my question is getting in the same week: Penfed Platinum Rewards with a 20K limit and a US Bank Cash Plus with 15K. The latter is signature, the first isn't. Looking into it more, it seems that Penfed doesn't have signature cards, so presumably there is some incentive for them not to.

My highest CL Visa card (Cap One, 30K) is also just Platinum, but that is fairly old (2004), and even though that was the initial (and current!) CL, it might be that at that time signature didn't exist/wasn't common/Cap One didn't do it.

Re: Signature/Platinum

mxp114 — Fri, 16 Nov 2012 16:06:49 GMT

My guess is some lenders target a different market, perhaps focus on users that won't need/want concierge or other Signature services. Or simply they don't want the added expense of subsidizing some of these benefits. PenFed doesn't issue Visa Signature, which does seem unusual.