So if you use your CSP to dine in a restaurant or check in a hotel in Australia, where the CC transaction fee is greatly reduced, normall below 1% for most merchants and below 2% for traditionally high-profit industries like hotel.
Here comes the question, if you check in a hotel, then Chase actually receive far less than 2% of transaction fees, but Chase still gives you 2 UR points per dollar, which can be redeemed for 1cent/point cashback, though in reality it's far more valuable than 1 c/p if you use it for award plane tickets. Since Visa merchants code is universal, so merchants should code the transaction the same way. And there's no forex fees.
I know there's a guy who frequently travel between Australia and US here in the forum, CreditScholar? . So I think he really saves a lot of money from this because local Australian creditors offer very lousy CC award, 1 point every five dollar!? and a hefty AF (How lucky we are!).
Does this mean Chase is losing money? 
@Anonymous wrote:So if you use your CSP to dine in a restaurant or check in a hotel in Australia, where the CC transaction fee is greatly reduced, normall below 1% for most merchants and below 2% for traditionally high-profit industries like hotel.
Here comes the question, if you check in a hotel, then Chase actually receive far less than 2% of transaction fees, but Chase still gives you 2 UR points per dollar, which can be redeemed for 1cent/point cashback, though in reality it's far more valuable than 1 c/p if you use it for award plane tickets. Since Visa merchants code is universal, so merchants should code the transaction the same way. And there's no forex fees.
I know there's a guy who frequently travel between Australia and US here in the forum, he's scholar what.. I don't remember exactly. So I think he really saves a lot of money from this because local Australian creditors offer very lousy CC award, 1 point every five dollar!? and a hefty AF (How lucky we are!).
Does this mean Chase is losing money?
I don't quite understand the whole thing in general, but here's my take.
Chase may be losing money for a few transactions, or maybe for a few customers. They're making money through other aspects as well, such as interest fees. The general population is not going to accrue mostly overseas charges and transfer UR points to their partners. We don't even know how much Chase is paying their partners for those points. For all you know Chase might be getting them for less than 1ccp due to existing business dealings with those partners.
Where's CreditScholar when one needs him 
@Anonymous wrote:
@Anonymous wrote:So if you use your CSP to dine in a restaurant or check in a hotel in Australia, where the CC transaction fee is greatly reduced, normall below 1% for most merchants and below 2% for traditionally high-profit industries like hotel.
Here comes the question, if you check in a hotel, then Chase actually receive far less than 2% of transaction fees, but Chase still gives you 2 UR points per dollar, which can be redeemed for 1cent/point cashback, though in reality it's far more valuable than 1 c/p if you use it for award plane tickets. Since Visa merchants code is universal, so merchants should code the transaction the same way. And there's no forex fees.
I know there's a guy who frequently travel between Australia and US here in the forum, he's scholar what.. I don't remember exactly. So I think he really saves a lot of money from this because local Australian creditors offer very lousy CC award, 1 point every five dollar!? and a hefty AF (How lucky we are!).
Does this mean Chase is losing money?
I don't quite understand the whole thing in general, but here's my take.
Chase may be losing money for a few transactions, or maybe for a few customers. They're making money through other aspects as well, such as interest fees. The general population is not going to accrue mostly overseas charges and transfer UR points to their partners. We don't even know how much Chase is paying their partners for those points. For all you know Chase might be getting them for less than 1ccp due to existing business dealings with those partners.
+1
Which is how most financial institutions leverage their marketing and strategic partnership agreements with a variety of them to begin with.
@Anonymous wrote:
@Anonymous wrote:So if you use your CSP to dine in a restaurant or check in a hotel in Australia, where the CC transaction fee is greatly reduced, normall below 1% for most merchants and below 2% for traditionally high-profit industries like hotel.
Here comes the question, if you check in a hotel, then Chase actually receive far less than 2% of transaction fees, but Chase still gives you 2 UR points per dollar, which can be redeemed for 1cent/point cashback, though in reality it's far more valuable than 1 c/p if you use it for award plane tickets. Since Visa merchants code is universal, so merchants should code the transaction the same way. And there's no forex fees.
I know there's a guy who frequently travel between Australia and US here in the forum, he's scholar what.. I don't remember exactly. So I think he really saves a lot of money from this because local Australian creditors offer very lousy CC award, 1 point every five dollar!? and a hefty AF (How lucky we are!).
Does this mean Chase is losing money?
I don't quite understand the whole thing in general, but here's my take.
Chase may be losing money for a few transactions, or maybe for a few customers. They're making money through other aspects as well, such as interest fees. The general population is not going to accrue mostly overseas charges and transfer UR points to their partners. We don't even know how much Chase is paying their partners for those points. For all you know Chase might be getting them for less than 1ccp due to existing business dealings with those partners.
Here I mean whether Chase lose money in this kind of transactions or not. Because obviously this small portion of CC spending will not cause the whole Chase CC business to lose moeny.
And second, I'm pretty sure Chase buy airline reward mile for more than 1 cent each, United MileagePlus for example. Because only certain cards of certain banks can transfer points to airline miles on 1:1 bases. If 1 mile is cheaper than 1 cent, then every large bank should offer this kind of transfer instead of a plain 1 point to 1 cent cash back redemption on their no AF CC.
