USAlliance card change

[longtimelurker]

---

@Kforce wrote:

---

@craig10x wrote:

That's because the Rewards Link isn't hooked up yet...No eta on that...

---

Just logged in today.

My rewards have rolled over all 18 points.  

They are adding new points as charges post.

Have points listed in two columns.

Ex:

Transaction                       Base Points        Bonus Points

Ex: Costco   $500              500                      1000

Looked at the redemption page for statement credit and cashback to account.

It looks like they only have redemption in  $25 chunks, leaving money on the table.

Give you points sooner but make you leave money for next time  

---

Yes, the $25 increments was a real pain which they briefly had got rid of, but now it is back!   Means I have to try to calculate Dec 2022 spending carefully, so I can fully cash out before the 3% ends!    (Even though it will be a 2% card, with $25 min, $25 increments and a FTF, nothing to recommend it)

[craig10x]

Don't rule out the possibility of them extending the 3% cashback beyond the end of this year...they have "extended" it several times already...in the past for 6 month periods and now for a full year...so...good chance they will do it again...

[longtimelurker]

---

@craig10x wrote:

Don't rule out the possibility of them extending the 3% cashback beyond the end of this year...they have "extended" it several times already...in the past for 6 month periods and now for a full year...so...good chance they will do it again...

---

I agree, but not planning on it!  If they extend, I hope they do in advance.  Last time, I did plan and cash out my rewards, then the following month they reinstituted 3%       Not sure what competition they have though that would make them need/want to continue.  AOD is pretty niche outside this forum....

[Kforce]

---

@longtimelurker wrote:

---

Yes, the $25 increments was a real pain which they briefly had got rid of, but now it is back!   Means I have to try to calculate Dec 2022 spending carefully, so I can fully cash out before the 3% ends!    (Even though it will be a 2% card, with $25 min, $25 increments and a FTF, nothing to recommend it)

---

I am also planning to retire the card in Nov or Dec.

Will be using the calculator to get my rewards and have a zero balance.

I almost closed it last time, before they gave it CPR.

Will be patient this time and not rush to close.

Agree not a top 2% card, won't see kforce spend unless they re-extend the 3%

[craig10x]

Consider this...by having the cashback rate at 3% for so long....i think most card holders would expect it to be a regular thing...in fact if you didn't read the fine print you would think that it is always the rate...They will probably realize that after having it for so long...it might drastically affect card usage if the move it down to 2%...It's not like it was just a short term promotion lasting only a few months...

It is ADVERTISED as a 3% card... 

[longtimelurker]

---

@craig10x wrote:.

It is ADVERTISED as a 3% card... 

---

What do you mean???   It is CLEARLY stated, at the bottom of the page, in 1 point font:

" 3 Points per dollar accrual rate is a promotional value and expires on 12/31/2022,"

Sure, a causual viewer might miss it but that's hardly our fault!

When many of us applied when it first became FotM (just before AOD) we were very surprised to see the card say it was a promotional rate.  I was pretty sure that that wasn't indicated anywhere, but seeing the current disclosure style, who knows!

[craig10x]

But consider this: if you keep the rate at 3% cashback for a whole year...i would think they would realize that if they did bring it down to 2% then they would lose a tremendous number of users...question is: would they want to take that risk?

Especially considering that 2% cards are plentiful out there...Having 3% makes their card STAND OUT and not only keeps a strong user base but also attracts many new customers...

[longtimelurker]

---

@craig10x wrote:

But consider this: if you keep the rate at 3% cashback for a whole year...i would think they would realize that if they did bring it down to 2% then they would lose a tremendous number of users...question is: would they want to take that risk?

Especially considering that 2% cards are plentiful out there...Having 3% makes their card STAND OUT and not only keeps a strong user base but also attracts many new customers...

---

It's not just customers.   The question is whether 3% is costing too much money, or if, presumably like AOD, it is still somehow profitable

[craig10x]

One last point: if it wasn't more profitable for them to have the 3% cashback...why the heck have they renewed for 6 months....then another 6 months and now for one full year?  Think about that...

Again 2% cards are a dime a dozen...3% makes them stand out...attracts a LOT of new members AND greatly increases card usage for those who have the card...and that can more than make up for the extra cashback...

[longtimelurker]

---

@craig10x wrote:

One last point: if it wasn't more profitable for them to have the 3% cashback...why the heck have they renewed for 6 months....then another 6 months and now for one full year?  Think about that...

Again 2% cards are a dime a dozen...3% makes them stand out...attracts a LOT of new members AND greatly increases card usage for those who have the card...and that can more than make up for the extra cashback...

---

This sounds like making up losses with volume!    I think most of believe that issuers aren't making a profit on paying 3% rewards (they don't get enough of any swipe fee), so it can be viable if you attact members who then use other products, or who pay interest on the credit cards, or both.

And in response to your first question: if it IS profitable, why have they bothered to put a sunset clause in at all?  Just as valid a question!  AOD hasn't.  Most issuers just quietly nerf.

Personally, since it's points based, I am surprised that they didn't/don't follow the Penfed method and just devalue the points.   No need to make an announcement.

But anyway, I now know how they finance the card.  Problems with USAlliance - myFICO® Forums - 6512504   Disappearing $35K works wonders...