Does anyone think that quicksilver or Chase Freedom Unlimited will ever raise their rebate from 1.5% to 2% to match other 2% cards like Citi DC?
@Anonymous wrote:Does anyone think that quicksilver or Chase Freedom Unlimited will ever raise their rebate from 1.5% to 2% to match other 2% cards like Citi DC?
Frankly, I don't even get how lenders can maintain 2% at all, since that eats up pretty much everything they make on swipes.
@SouthJamaica wrote:
@Anonymous wrote:Does anyone think that quicksilver or Chase Freedom Unlimited will ever raise their rebate from 1.5% to 2% to match other 2% cards like Citi DC?
Frankly, I don't even get how lenders can maintain 2% at all, since that eats up pretty much everything they make on swipes.
Yeah if you assume that no one carries a balance then premium cards with all their perks(inusrances etc cost money, it's not just the return) would be a giant loss for banks. However for 2% they still get some money for each transaction with the upside of potentially collectin interest. As for the original post, i don't think freedom will ever be 2% unless they stop point transfering because the value would be way ahead of the market with the CSR(3% min return on spend on everything redeemed for travel purchases). Capital one is for churners and not well established borrowers so i don't think so they will try to compete for the "prime" market. The only card that make sense as a long term keep that they offer is the savor but then again the uber card is better at it.
@Anonymous wrote:
@SouthJamaica wrote:
@Anonymous wrote:Does anyone think that quicksilver or Chase Freedom Unlimited will ever raise their rebate from 1.5% to 2% to match other 2% cards like Citi DC?
Frankly, I don't even get how lenders can maintain 2% at all, since that eats up pretty much everything they make on swipes.
Yeah if you assume that no one carries a balance then premium cards with all their perks(inusrances etc cost money, it's not just the return) would be a giant loss for banks. However for 2% they still get some money for each transaction with the upside of potentially collectin interest. As for the original post, i don't think freedom will ever be 2% unless they stop point transfering because the value would be way ahead of the market with the CSR(3% min return on spend on everything redeemed for travel purchases). Capital one is for churners and not well established borrowers so i don't think so they will try to compete for the "prime" market. The only card that make sense as a long term keep that they offer is the savor but then again the uber card is better at it.
Don't think the Quicksilver is for churners (Venture at some stage, maybe) but I agree that it is unlikely to go to 2%. From what I remember, Cap One was one of the early leaders in going to 1.5%, when the norm was 1% at most for flat rate cards. And given that they increased the AF for Venture for new accounts, it seems unlikely that they view 2% as profitable (enough) for a free card.
@SouthJamaica wrote:Frankly, I don't even get how lenders can maintain 2% at all, since that eats up pretty much everything they make on swipes.
Most (if not all?) of the 2% cards are issued as Visa Signature or World/World Elite MasterCard cards. The Interchange for swipes that go almost wholly to the issuing bank for those card types through Visa and MasterCard (both link directly to the latest PDF from each card network) are more than enough to cover the rewards. Plus, only about 35% of U.S. consumers PIF, so the majority of those people "earning 2%" are paying back 1.33% or worse (1.33% is based on 15.99% APR) in interest every month, anyway.
@Anonymous wrote:Does anyone think that quicksilver or Chase Freedom Unlimited will ever raise their rebate from 1.5% to 2% to match other 2% cards like Citi DC?
No. The Freedom Unlimited already redeems at 2.25% if you transfer the points to the CSR, so Chase won’t do it. Capital One has chosen not to compete with the big three (Amex, Chase, and Citi), so don’t expect them to start now.
