What does it mean for the "points to retain their original redemption value"? For example, if there's a CSR with 30k points and a CF with 10k points and you transfer the 10k over, does the CSR technically have 2 distinguishable pools of points? As in you can use the 30k to redeem for travel at 1.5 cpp, but the 10k would only be 1cpp?
@mkhan1093 wrote:What does it mean for the "points to retain their original redemption value"? For example, if there's a CSR with 30k points and a CF with 10k points and you transfer the 10k over, does the CSR technically have 2 distinguishable pools of points? As in you can use the 30k to redeem for travel at 1.5 cpp, but the 10k would only be 1cpp?
That's one of the possibilities being thrown around.
Again, nothing has actually changed yet.
@Anonymous wrote:
UpperNewGuy - Well it definitely covers transfers from the Freedom, as explained.
For the Freedom Unlimited with the CSR you only get an extra 0.75% value per point. So spending over $20,000 annually on the Freedom Unlimited would end up outweighing the AF which honestly I don't spend 20k on it, but I'm sure there are some that do. But if those people already have the CSR (or CSP) why not just put that 20k or more spend on those cards instead of the FU and transferring?
It's just not adding up...am I missing something?
Depends how the math works out.
@Currently FU @ 1.5x > CSR @ 1x for default spend.
@With the transfer in play and no difference between the points, the bonus for CSR redemption is equal. If they disallow the redemption, then it's a different calculus as someone stated: CSR @1.5x including the bonus, vs JCB at 2.9% or Alliant at 2.5% or USAA at 2.5%? If you can get 2 cpp maybe, if you can't... well, this is pretty basic math.
I'm not doing anything including worrying about it until the hammer drops if it even does, but I did consolidate my points from all of my cards to my CSR just in case... was going to do that anyway either in part or in whole at some point, this just stopped me from being lazy about it.
@Anonymous wrote:
They earn the max each quarter which would total out to $300 annually. If they purchase through the Chase portal to get their extra 25-50% redemption value that's an extra $75/$150 value.
The $95 or $450 Annual Fee both outweigh the additional redemption value, which is likely something they factored in when determining AF's.
But you pay the AF whehter or not you transfer. The Annual Fee is not a function of transferring points from the Freedom, it is a requirement of having the CSP/CSR. The entire additional value is a loss for Chase.
@Anonymous wrote:
Also, when you book through the Chase Portal Chase earns miles/hotels/points by purchasing it with a rewards account of its own that they then use in turn to pocket more money when people book through them
That may not be what it used to be. The idea is that Chase purchases a whole bunch of points on bulk at a significant discount, then give it out as rewards for their credit cards. But the travel industry as a whole is facing stiff competition from budget operators and alternatives, which is forcing them to devalue their own rewards points/miles. It would logically follow that their bulk rates are going up accordingly as well. Airlines face mounting competition from budget airlines whose discount is in cash, and traditional hotels are fighting to keep up against the likes of Airbnb and against OTAs that tend to do a much better job of comparison shopping. Both are facing a customer base that are savvier shoppers and want discounts here and now. The more people comparison-shop and choose what to fly/where to stay based on the price today, the less likely they are to stick with a single brand to rack up points.
In other words, my observation is that the travel industry is more focused on acquiring customers by offering discounts and deals rather than by creating a loyal base through rewards points. So, cash is king.
