Unprofitable Rewards

[Anonymous]

It appears a lot of Savor cardholders are getting a 1.5% cash back minimum until the end of the year. The usual 1% cash back is being bumped for 3 months. This is to encourage people to use the card for more than just entertainment and dining. 

So far, I was not offered the temporary bump. I don't expect to get it.

I think, as I suspected, CCCs are looking at accounts that use the higher rewards rates only. I wasn't one of them as I often purposely use the card for 1% categories. This may be why I'm not getting the temporary 1.5%. Just a thought,  but I don't think it's a coincidence.

[Anonymous]

I use reward category only. So far I got plenty of offers from chase, axp. I have only 1 card from cap1 and 2 from citi.

It is what it is, worrying too much of what I can't control doesn't do me any good,

[Anonymous]

@Anonymous one thing, the benefits of protection for credit cards is not there for Debit Cards. And, why would I not take what I can get for rewards whatever they are it is more than Debit. Debit gives me nothing and in today's world exposes my banking relationship to the whims of the lender, not worth it!

[Anonymous]

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@Anonymous wrote:

I use reward category only. So far I got plenty of offers from chase, axp. I have only 1 card from cap1 and 2 from citi.

It is what it is, worrying too much of what I can't control doesn't do me any good,

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I certainly don't worry about it. The point is they do look at profitability by customer at times.

[Anonymous]

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@Anonymous wrote:

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@Anonymous wrote:

I use reward category only. So far I got plenty of offers from chase, axp. I have only 1 card from cap1 and 2 from citi.

It is what it is, worrying too much of what I can't control doesn't do me any good,

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I certainly don't worry about it. The point is they do look at profitability by customer at times.

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well no, that remains your guess. Your single anecdotal evidence is not conclusive in anyway. Now if you get a hold of secret memo of Cap1, then that would be very convincing.

[kdm31091]

Obviously Capital One would prefer you use the Savor card for most/all purchases, not just the ones earning 4%. Whether it has anything to do with who gets targeted for the bonus promotions, who knows?

[Anonymous]

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@Anonymous wrote:

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@Anonymous wrote:

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@Anonymous wrote:

I use reward category only. So far I got plenty of offers from chase, axp. I have only 1 card from cap1 and 2 from citi.

It is what it is, worrying too much of what I can't control doesn't do me any good,

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I certainly don't worry about it. The point is they do look at profitability by customer at times.

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well no, that remains your guess. Your single anecdotal evidence is not conclusive in anyway. Now if you get a hold of secret memo of Cap1, then that would be very convincing.

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I was told once that a CSR has summaries of customer information on their screens when you call. On time payment %, YTD interest, etc. This was before rewards cards really kicked in. Would not be surprised if they track profitability by customer.  At least we know now that CO probably looks at rewards profitability  by customer, maybe not in real time, but via batch processing.

[Anonymous]

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@kdm31091 wrote:

Obviously Capital One would prefer you use the Savor card for most/all purchases, not just the ones earning 4%. Whether it has anything to do with who gets targeted for the bonus promotions, who knows?

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It might. I put about 100/mo on Savor at 1%, and 600/mo at 4%. They don't need to offer me 1.5% on 1% categories. 

[Anonymous]

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@Anonymous wrote:
@Anonymousone thing, the benefits of protection for credit cards is not there for Debit Cards. And, why would I not take what I can get for rewards whatever they are it is more than Debit. Debit gives me nothing and in today's world exposes my banking relationship to the whims of the lender, not worth it!

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Speaking of benefits, some debit cards do have extended warranty, etc. (example) Also, with issuers like Citi getting rid of a whole bunch of them at the lower end, I'm not sure there's much of a difference between debit and credit cards anymore for most (from that perspective).

That said, I will admit that there are stronger legal protections for fraudulent credit card charges (especially if for some reason you don't report the charges within 48 hours). In practice, however, debit cards get treated the same as credit cards. No bank wants to be known as one that doesn't stand by their customers, after all, especially when there are thousands of others to choose from.

(Rewards-wise? No question that credit cards are better. Merchants aren't too happy with paying the level of interchange required to sustain those, though, so who knows how much time we have left to take advantage of CC rewards.)

[Turbobuick]

"Unprofitable Rewards" is by definition an oxymoron. All rewards are profitable to the recipient, but not to the bearer. Yes, the many that gain from the rewards depend on those that carry large balances and absorb fees. Hence, they balance out us takers and them givers.