Changes in your credit/debit card rewards programs?

[smstonypoint]

Have you noticed changes in your credit/debit card reward programs in recent months?

The Missus and I use our SunTrust Visa credit cards for most purchases (groceries, etc.) and monthly bills (utilities, cell phones, etc.) in order to accumulate reward points that we redeem as Visa prepaid cards. (We never carry a balance across months).

A few months ago we received a notice that our SunTrust debit card purchases would no longer earn reward points. Formerly, those purchases would have earned 0.25%.* No problem, we use those cards only for ATM withdrawals from our checking account.

Formerly, our credit card purchases earned 1% in reward points -- $10K in purchases could be redeemed for a $100 prepaid Visa card. I was getting ready to redeem some reward points this a.m. when I noticed that the highest denomination prepaid card I can obtain is $50 and that it requires $5.5K in purchases (0.91%).

Just speculation on my part, but I suspect that this is a consequence of last year's credit card legislation: Credit Card Help: What the new credit card law means for you.

Steve

* If we signed rather than using a PIN.

 

[mjarrels]

Yep... Congress are not working for the people who elected them.

mark

 

[Travelover]

Dunno. I use the Fidelity AmEx card and get 2% deposited in to my Fidelity sweep account, on all purchases, no limit. Even use it at Costco.

 

[grsthegreat]

my am express pays me 4% for all fuel and 1% for everything else i use it for. I also use a capital one visa for my business and this earns 1%. I pay off ALL balances every month, so it costs me nothing to use credit card. I bought $14,000 worth of romex last year and got a check for $140 BACK MADE OUT TO CASH. i FIGURE WHY NOT.

dang caps. Anyways as long as i can get 1% ill keep using it. if they cut that, ill lose the card and resort back to checks.

 

[Bird]

We've used Discover Card for years and I just use the "rewards" cash to pay on the account. And of course, as others have said, I pay in full each month. A couple of months ago, I let Chase Bank "upgrade" my Chase Visa to their so-called "Freedom" Visa; same account number, but supposedly better "rewards" if you don't mind taking the time to jump through all the hoops for the different amounts for different things in different "quarters" of the year. You have to either call or go online to request each of those at the appropriate time. For the most part, more trouble than it's worth.

 

[NY_Yankees_Fan]

Try this card

https://www.penfed.org

1% on back all purchases, 5% back on gas. The rewards are given each month in your statement and are automatically taken off the balance due. We pay off the card each month and do NOT carry a balance.

If you are member of the armed services or a government employee you can have the card. If not you can join one of these 2 organizations here, for a one time fee of $15 and become a member. This is what we did.

https://netmember3.penfed.org/NetMember/Forms/OpenAccounts/Eligibility.aspx

I have been using the card for several years with no problems. They have great rates on auto and home loans.

And NO I do not work for penfed.

 

[Chuck52]

I always cash in the "miles" I earn on my Chase MasterCard as Home Depot cards. There are other options, but so far I've had the few hundred dollars worth of stuff I've needed at Home Depot. I did once try to actually use the "miles" for airline tickets, but I only had enough for one ticket and there was no easy way to get two tickets on the same flight at a reasonable price. It was a better deal to get the tickets I needed online and get Home Depot cards for some stuff I was going to buy anyway.

I haven't noticed any recent change in my rewards program, but I only cash in once a year. I have noticed the company keeps trying to increase my credit limit, probably in the hope they will eventually get some interest money from me, which hasn't happened in many, many years.

Chuck

 

[smstonypoint]

My mistake.

I didn't do enough research -- I can still obtain a $100 Prepaid Visa with $10K in Visa credit card purchases (1%). The Redeem Rewards section on my bank's Web site leaves a lot to be desired.

Steve

 

[SPYDERLK]

My mistake.

I didn't do enough research -- I can still obtain a $100 Prepaid Visa with $10K in Visa credit card purchases (1%). The Redeem Rewards section on my bank's Web site leaves a lot to be desired.

Steve

No, you were actually right. They are tightening up. Some are escaping it for the time being. The benefits will erode if the consumer market continues to use the cards that lower benefits. I have one that gives cash back on retail and gas purchases applied directly against the bill. Used to have 2, but one stopped applying it directly in favor of an improved higher hassle refund. That card is now seldom used.
larry

 

[tallyho8]

I have had a few reward cards stop or lower their benefits over the last few years. I do not think any have been since the new credit card legislation. I think it is mainly a bait and switch tactic by them to get you to use their card and then they decrease the benefits after awhile.

There are still a few good reward cards available if you have good credit. I have a Mastercard that pays 6% rebate on all fuel purchases. I have a Visa that pays 3% rebate at all home improvement stores and office supply stores. They all pay 1% back on everything else.

My Chase Freedom card used to pay off 3% on most things such as grocery stores, gas, drug stores, etc. but they changed their rules and cut way back on their rewards but mailed out flyers informing you of how they were improving their reward program and making it sound like you got more but when you read the fine print you get much less now.

My Discover card used to give back 5% on gas but then they changed it to 1% and it only pays off a higher percentage after your first $1000 purchase each month.

My Paypal card gives back 1 1/2% rebate on purchases when used as a credit card.

 

[grsthegreat]

I had my capital one send me a letter stating they were going to scale back their 1% rewards program, so i called to cancel the card. Ive had it for 15years, so they didnt want to lose me. i told them i want the 1% or ill drop the card. they told me they can honor the 1% IF they can increase my interest percentage. i told them to go ahead and increase the %, SINCE I PAY OFF THE CARD EVERY MONTH...WHO CARES.

I still get my checks, never pay them any interest, all is well in the world again.

 

[dmccarty]

I would guess it is the credit card company trying to squeeze out more profit. I have one card that gives me 1% back. Last year another company send me an application for a card that after we spent a certain amount, we would get 1.25% back. On fuel, drugs, and groceries we get 5% back. The credit card company at 1% I have had for years with no changes. These are cash back rewards. No strange games just cash. :thumbsup:

If the CC changes the percentages I will get a different card. I had one card for decades and they started playing with the due date before they would hit you with late fees. They would send the bill right close to the end/first of the month but the due date was pretty close to the first of the month so it was easy to miss the payment. The due date for years was around the 15th/20th but they slowly moved it in get you with late fees.

They got me once so I called and complained. They took of the charge and reset the date to around the 15/20th. A few bill cycles later they had moved the date back towards the 1st. I called up and canceled.

I STILL get a couple of CC applications a week. Including from the card I canceled. It has slowed down with the economy but I still get too many of them.

Later,
Dan