Penfed makes redeeming rewards harder with slight devaluation

[Shadowfactor]

Logged into today to buy a $50 Visa card with my Penfed Platinum Rewards card points.

I wasn’t able to find the Visa GC in a smaller denomination then $100. There used to be a $25 and $50 option. I called Penfed to enquire and the CSR informed me that the $25 and $50 were no longer available.

Penfed raised the minimum redemption value to get the most value out of your points.

Now the only options to redeem $25 are 3rd party GC’s at a higher rate. 2940 points. While I believe that’s the value they have been. It’s certainly harder to redeem points now. I view this as a slight devaluation of points

[gdale6]

Making things more difficult in this day and age of max rewards is liable to result in a flood of account closures. To disclose I have no relationship with PenFed.

[UpperNwGuy]

The PenFed Platinum Rewards card has always been a terrible card.  I remember the sudden and secretive devaluation of the points a few years back, so this latest action doesn't surprise me at all.  I just hope that this kind of devaluation doesn't migrate over to the PenFed Power Cash Rewards card.  Those who have the PenFed Pathfinder should watch their redemption options closely in the coming months, because Pathfinder, like Platinum, has points that are worth less than a penny each.

[Anonymous]

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@UpperNwGuy wrote:

The PenFed Platinum Rewards card has always been a terrible card.  I remember the sudden and secretive devaluation of the points a few years back, so this latest action doesn't surprise me at all. 

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Not sure I would describe it as "terrible", fairly easy to get and giving ~ 4.2% on gas at the pump.  I was also able to use it at supermarkets abroad to get ~ 2.5%, which wasn't possible with Amex (even without the FTF) but other visa cards do better now.

But yes, any point system can have sudden secret devaluations, let's hope URs stay with a par 1c!

[imaximous]

I've posted before about my dissatisfaction with Penfed's rewards program. The conversion is definitely not 1:1 when it comes to cash equivalent redemptions.
Then, the other issue is travel redemptions. The portal is ancient and doesn't offer a lot of options. The search results yield much higher costs for booking when comparing the same itineraries with other travel sites or even directly with airlines or hotels. So, they claim a higher redemption value on travel, but then, the cost of the actual booking is also much higher. Very frustrating.
I should've done my research before getting the Pathfinder for the rewards, so it's been SDed after I met the SUB. But, I'm keeping the card because it actually pays you to, being that it's a no AF card. I'll continue to claim my annual $100 for travel incidentals and Global Entry. I'm just not charging anything on it.
I believe both the Platinum Rewards and Pathfinder use the same type of rewards structure.

[Shadowfactor]

I agree the rewards system isn’t great but for a No-AF card. 4.2% on gas is pretty good. It’s the whole reason I got the card. Although the automated fuel pump requirement makes it tricky to use overseas where I go for work. I ended up just giving the card to my mother to use on gas. She likes T.J. Maxx so she redeems the points for those giftcards and she’s happy. She’s not a big credit card person anyway.

I don’t have the pathfinder but what I read on the internet was that the Platinum rewards structure was slightly better as they allowed $25 VISA GC’s where the pathfinder didn’t.

[imaximous]

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@Shadowfactor wrote:
I agree the rewards system isn’t great but for a No-AF card. 4.2% on gas is pretty good. It’s the whole reason I got the card. Although the automated fuel pump requirement makes it tricky to use overseas where I go for work. I ended up just giving the card to my mother to use on gas. She likes T.J. Maxx so she redeems the points for those giftcards and she’s happy. She’s not a big credit card person anyway.

I don’t have the pathfinder but what I read on the internet was that the Platinum rewards structure was slightly better as they allowed $25 VISA GC’s where the pathfinder didn’t.

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I honestly gave up on their rewards site. I have the points sitting there and no energy to claim them, haha. I only saw store gift cards when I was looking and not Visa cards that I remember, so you're probably right.

Here's an idea for gas in case you're not aware. If there are Mobil or Exxon gas stations by you, download their Speedpass+ app on either iOS or Android. Then, you can use your AR as the payment option. It'll ring as mobile wallet if you use Apple Pay or Samsung Pay to pay getting you 3x, and potentially 4.5x if redeemed for travel. That's what I've been doing for months now. Plus, Speedpass+ has its own rewards system on top of that where you save money on gas. 

[Loquat]

I don't really care for the $100 minimum redemption but I could live with it.  What I don't like is having to wait for a Visa gift card via snail-mail.  At least give me the option to redeem for statement credit.

[UpperNwGuy]

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@imaximous wrote:
I've posted before about my dissatisfaction with Penfed's rewards program. The conversion is definitely not 1:1 when it comes to cash equivalent redemptions.
Then, the other issue is travel redemptions. The portal is ancient and doesn't offer a lot of options. The search results yield much higher costs for booking when comparing the same itineraries with other travel sites or even directly with airlines or hotels. So, they claim a higher redemption value on travel, but then, the cost of the actual booking is also much higher. Very frustrating.
I should've done my research before getting the Pathfinder for the rewards, so it's been SDed after I met the SUB. But, I'm keeping the card because it actually pays you to, being that it's a no AF card. I'll continue to claim my annual $100 for travel incidentals and Global Entry. I'm just not charging anything on it.
I believe both the Platinum Rewards and Pathfinder use the same type of rewards structure.

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PenFed Platinum Rewards, PenFed Pathfinder, and PenFed Power Cash Rewards all have rewards programs administered by an outside company called LoyaltyEdge, so the similarities between the Platinum and Pathfinder points programs is not surprising.  Both make use of devalued points and awkward redemptions.  So far the Power Cash has a simpler cash-only rewards program that doesn't use points, and hopefully that won't change.

[imaximous]

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@UpperNwGuy wrote:

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@imaximous wrote:
I've posted before about my dissatisfaction with Penfed's rewards program. The conversion is definitely not 1:1 when it comes to cash equivalent redemptions.
Then, the other issue is travel redemptions. The portal is ancient and doesn't offer a lot of options. The search results yield much higher costs for booking when comparing the same itineraries with other travel sites or even directly with airlines or hotels. So, they claim a higher redemption value on travel, but then, the cost of the actual booking is also much higher. Very frustrating.
I should've done my research before getting the Pathfinder for the rewards, so it's been SDed after I met the SUB. But, I'm keeping the card because it actually pays you to, being that it's a no AF card. I'll continue to claim my annual $100 for travel incidentals and Global Entry. I'm just not charging anything on it.
I believe both the Platinum Rewards and Pathfinder use the same type of rewards structure.

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PenFed Platinum Rewards, PenFed Pathfinder, and PenFed Power Cash Rewards all have rewards programs administered by an outside company called LoyaltyEdge, so the similarities between the Platinum and Pathfinder points programs is not surprising.  Both make use of devalued points and awkward redemptions.  So far the Power Cash has a simpler cash-only rewards program that doesn't use points, and hopefully that won't change.

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Thanks for the info. No idea who handled their rewards, but if they also manage the Power Cash, then it shouldn't be a problem for them to add the ability to convert Platinum or Pathfinder rewards to straight cash either as a statement credit or deposit to an account. Of course, they won't do that to make it more annoying to redeem anything. I also have the Power Cash, so I only use that card from the 2 Penfed's.