re: Credit Card Rewards and Points Discussion

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The app will be free to use. We capitalize monetarily on the float time between when we collect your money and when we actually use it to pay. Any interest earned on users balances is revenue for us. That's a very small # in individual scenarios, but that # gets exponentially larger if we can penetrate even a small percentage of the total market. This is how similar financial tech companies like Digit, PayPal, and Venmo operate.

We have also kicked around the idea of $.05 roundups for additional revenue. For example, if you spend $9.72, we will always round up to the nearest $.05 making it $9.75. We keep the $.03 as a type of convenience fee. That adds a recurring revenue stream while having a very small financial impact on users. If you had 50 transactions a month, which is on the absolute high end, and we took the max roundup possible at $.04, you are only paying $2/month in those fees.

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There is some app out there that rounds up to the nearest dollar, and then it puts that money in an account for you. I don't know what it is called but I've read about it before. Might want to see what type of structure the app has because it could offer some competition. Also, the most revenue for you might come from advertising like it has for Facebook. That may be just as profitable as the interest. If there is a way you can tap into advertising on your app, I would do that.

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Would be curious to know you and your friends payment habits are?

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Honestly, I know people all over the spectrum. Some try to stay on budget to save up for their next house or pay off student loans, and they either keep close track of their credit card balances or just use cash. Dave Ramsey's envelope system has caught on with a lot of people.
Other friends, and myself, use credit cards a lot more for the rewards. But most of us do end up spending more than we plan on. I pay mine off every month but I am sometimes shocked at how much I spent in the previous month. Actually, starting this month, I started keeping close track of every charge and trying to make myself more conscious of how much I'm spending.

Your app sounds like it is a good tool to help with budgeting without having to think about it. With some strategic marketing, you could point out the benefits to several groups of people who may be in different stages of life (trying to save for a goal, trying to rein in spending, trying to earn rewards, etc.,)
Best of luck to you

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Any suggestions on which hotel is best to accumulate points?

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I've heard good things about Hyatt and the card benefits so that could be a great,option in L.A. but they don't have the variety of the other majors. Outside of Four Seasons and Hyatt, Starwood has the sweetest hotels in L.A. and most of the world imo.

Get the SPG Amex and earn up to 5x points at SPG properties. The points are some of the most flexible out there and for sure most valuable.

Any place like cardcash that you can buy gift cards for 5x on ink? Only Office Depot near me and the selection isn't all that great.

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5x spend on $8000-$10000/year in grocery spending

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That was the plan with cardcash and walmarks. Hit it hard for about 5 mos then it went away. My wife used the last walmarks card this morning. Ebay walmarks cards are crazy!

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Just got approved for the Chase Sapphire this morning. Gonna use that to get the 50,000 points with the engagement ring purchase. Also added the authorized user, for the extra 5,000 bump.

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Wise choice. I will be doing the same soon (getting the card, not engaged). Good luck.

55k is a nice start. Will be getting that card in time for Christmas shopping.

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airport access

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Good thing it has airport access. Finally! Now we can all fly!

Authorized user fee $75, which makes me think they get lounge access, Global entry credit and other benefits.


Also, the 5/24 month rule, how do you count the 24 months? Is it to the date or what?

What's the source on the 50% discount? That seems rich considering the travel credit.

I can't wait for the Reserve card. I will likely drop the Amex Plat or downgrade. Im not realizing a lot of the benefits and the customer service of Amex isn't nearly as good as chase.

I follow you. I have about 200k UR points. If those transfer to the Reserve bucket the additional value will pay for the card.