I do not travel internationally at all. So I'm not interested in foreign transaction fees. I was just worried about the closures and got concerned. But it seems like you guys are makig me feel like it's still ok to get the PPMC.
@longtimelurker wrote:
@Beast26 wrote:I do not travel internationally at all. So I'm not interested in foreign transaction fees. I was just worried about the closures and got concerned. But it seems like you guys are makig me feel like it's still ok to get the PPMC.
Possibly not important either, but you don't have to travel in incur such fees. Buying from a foreign website can hit you with the fee
Can also hit you with a lot of other things too
@Beast26 wrote:...I was just worried about the closures and got concerned. But it seems like you guys are makig me feel like it's still ok to get the PPMC.
If your choice is between Citi DC and PPMC, they both have their stengths and weaknesses. For that matter, all the 2% or better cards have some quirks or caveats of which different people have different tolerances. In my opinion, PPMC is better between those two. I like the no minimum redemption for one thing. The big complaint with those who have PPMC seems to be the cumbersome digital interface. There isn't a dedicated app or website so it must be managed through your PayPal account. Cashing out rewards goes back through the PayPal account also, from my understanding. And there isn't an ability to set up account alerts (texts) like with many cards. (Note: These are not my personal observations but what I've read in reviews about those who actually have had PPMC.)
There are many other cards that pay uncategorized 2% or better. Most of the others that I am aware of except for these two require you to have membership or accounts set up (such as at Fidelity or a credit union). However, there is at least one more card that doesn't make you open accounts to get the 2%. First National Bank of Omaha (FNBO) is a great bank and they had a 2% card (Complete Rewards) which previously required you to have a bank account to get the full 2%. Last fall, they added their "Cashback Rewards" card that allows you to get 2% in rewards without having an account to redeem into. See info here:
https://www.fnbo.com/personal-banking/credit-cards/cashback-rewards/
Some of those other lenders require you to maintain a certain balance or set up direct deposit or limit redemption options. That's the reason why you hear so much more about those two mainstream cards as they are less complicated to get plus they get more advertising and attention. However, depending on where you bank or other variables, some of the other 2% may be a better value for you. I recently pointed someone to the Key Bank CashBack card because they mentioned they bank with Key. I personally prefer the PenFed Power Cash Rewards card for many reasons, but a couple of months ago I added the AOD FCU Visa Signature that pays 3% cashback uncategorized, and I've been very pleased and impressed with it. But both those cards do require you to set up new credit union membership. The Alliant FCU cards or the State Department FCU Premium Cash Back + have both been popular also.
For anyone interested, here are some other options to consider in the 2%+ cash-back realm:
- AOD FCU Visa Signature 3%
- Citi Double Cash Visa
- Fidelity Visa (Elan Financial Services)
- Alliant FCU Platinum Rewards 2% (no AF)
- Alliant FCU Visa Signature 2.5% (with AF)
- PayPal Cashback Mastercard
- PenFed Power Cash Rewards
- Navy FCU Flagship Rewards 3%/2% (with AF)
- State Dept FCU Premium Cash Back +
- BBVA Rewards Card
- Randolph-Brooks FCU Cashback Rewards Visa
- Pennsylvania State Employees CU (PSECU) Founder's Cashback Visa
- Signature FCU Visa Signature
- Key Bank Cashback Card
- FNBO Complete Rewards Visa
- FNBO Cashback Rewards Visa
- Bank of Missouri Ollo Optimum Mastercard (invitation-only)
- Bank of America Premium Rewards Visa (*with assets invested)
@Remedios wrote:I'm not sure why $25.00 minimum redemption is being talked about as a negative.
If it's taking you months of uncategorized spend to reach it, there is a good chance you can do just fine without 2% card.
Possibly. For those with lower incomes and lower spends, that becomes less accurate. Higher income (and higher spend) makes it less of a big deal to meet thresholds and could make it harder for someone to understand why someone else cares about minimums.
For anyone who uses more travel points rewards than cash-back rewards, there's a different expectation. For points, someone may be used to letting them accrue to a large amount to make redemption worthwhile. Accrual is part of the game to get more value. For consumers who like cash-back cards, there is no incentive for letting the rewards pile up. Unless someone likes to use the cash-back as a defacto "savings account," most will cash in at lower values, often immediately. Even if you're using the cashback to save for a special vacation or other expense, you're better off pulling the money out and earning a little interest off of it until you need it.
For others of us, it is the principle of the issue and the loss of control of redemption at whatever amount I choose. Are they my rewards or not? I dislike the games some banks choose to play and I dislike some contractual gotcha's in the fine print of Terms and Conditions. And I actually take the time to read them, which I imagine many people do not.
Capital One Quicksilver, IIRC, was the first card that offered uncapped and uncategorized 1.5% cashback, before 2% cards even came along. And they've always had no minimum redemption. They don't even make you wait until statement posting. Cash back is available immediately once a transaction posts. To me, that is the gold standard in cash-back redemption. Even before Capital One, Discover card had no minimum redemption. I used the card; I earned my rewards. Don't play games and make me wait for them if I want to redeem them immediately. No minimum redemption puts the customer in control of managing his rewards, at whatever the amount.
I believe the redemption thresholds are there to serve the banks' interests, not the customers. They are just another tool and loophole that banks use to possibly not ever have to pay the full promised rewards payout or to delay having to do so. At the least, they are holding onto all those unclaimed rewards without having to pay any dividends so it's a win-win for them. If you take $24.99 and multiply it by the total cardholders, that's a lot of potential cash back they could be sitting on. It also uses negative reinforcement (no rewards for you!) if you fail to keep using their card. If I earn $20 in rewards and decide to concentrate my spending on other cards for awhile, that cashback is unavailable until I use their card. Or if I decide to close it (or if the bank closes my account), I just forfeited any accumulated rewards.
I was glad to see Bank of America among others change their redemption policy to no minimum. And the no-minimum redemption was one of many factors I love about my PenFed Power Cash Rewards. Another great example is the new AOD FCU Visa Signature. They automatically credit all your earned cashback in the previous month to your balance due. Simple. If a small credit union from Alabama can do it, why can't anyone else including much larger banks?
There's just no good reason to require minimum redemptions except that some banks want to complicate their programs.
I agree, but maybe I’m looking at it through different colored glasses?
@Remedios wrote:I'm not sure why $25.00 minimum redemption is being talked about as a negative.
If it's taking you months of uncategorized spend to reach it, there is a good chance you can do just fine without 2% card.
It sometimes takes me months (when I have 5% gas on Discover or BBVA) to earn the $25 minimum redemption on my PNC card for 4% gas. It honestly doesn’t bother me. When I reach it, I redeem it. Of course, I pool my cashback from all cards to big enough sums to do something with it. If let it auto redeem a few dollars here and there I’ll blow it and really know I had it.
