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re: Credit Card Rewards and Points Discussion
Posted on 9/3/16 at 6:53 am to TigerRob20
Posted on 9/3/16 at 6:53 am to TigerRob20
The lady at Chase told me they were shipping out temp plastic ones and that the metal ones will follow. Something about a delay in production.
I didn't even ask about it, she said enough people were griping so she was just telling everybody preemptively
I didn't even ask about it, she said enough people were griping so she was just telling everybody preemptively
1
Posted on 9/3/16 at 10:39 am to Old Sarge
Posted on 9/3/16 at 11:05 am to Odinson
Just had a new experience. I applied for the Chase Sapphire Reserve last night, got a message that my application was pending review. So, I waited until this morning and did what I always do: I call the reconsideration line to answer any questions they have or discuss moving credit lines around to make room for the new card.
Guy answers the phone, and after giving him my information, immediately tells me that my application was approved. They must be churning through these app reviews at breakneck speed
Guy answers the phone, and after giving him my information, immediately tells me that my application was approved. They must be churning through these app reviews at breakneck speed
Posted on 9/3/16 at 11:52 am to AmeriKop45
Holy cow
10,000 approvals in the first few days?
10,000
Just say $1,000 worth of rewards given out per card as incentives, based on 100,000 points given per card
$10,000,000
Marketing Cost to launch the card????????
10,000 approvals in the first few days?
10,000
Just say $1,000 worth of rewards given out per card as incentives, based on 100,000 points given per card
$10,000,000
Marketing Cost to launch the card????????
Posted on 9/3/16 at 1:22 pm to Old Sarge
Couple things - 1) These points don't cost Chase what they cost us. They have deals in place with all their transfer partners etc. 2) Don't forget the $450 fee not waived the first year which covers almost 4.5M per 10K. While sign-up bonuses are loss leaders for Chase (and all other banks), it isn't $10m per 10K.
This post was edited on 9/3/16 at 1:24 pm
Posted on 9/3/16 at 1:34 pm to AmeriKop45
Hell they already put the $450 on my card and it hasn't even arrived yet. Noticed that online the other day. They mean business.
Posted on 9/3/16 at 1:36 pm to AmeriKop45
quote:
1) These points don't cost Chase what they cost us. They have deals in place with all their transfer partners etc.
I had that exact same thought, but people can theoretically redeem for a statement credit, which would be dollar for dollar, minus the 3% or so Chase skimmed off the top of the transaction. I can't imagine Chase having a deal set up for Global Entry ($100). I'm also not sure how they would swing a deal on the open ended $300 travel credit, which is potentially $600 in the first year.
Honestly, $1,000 upfront loss per card might be conservative.
Posted on 9/3/16 at 1:36 pm to Old Sarge
quote:
Holy cow
10,000 approvals in the first few days?
10,000
Just say $1,000 worth of rewards given out per card as incentives, based on 100,000 points given per card
$10,000,000
Marketing Cost to launch the card????????
How much does discover/Capital One pay to advertise cards on TV?
Chase probably makes ~1.5% on transaction fees which means that first $5000 spend for 10k signup nets them $750k too
Posted on 9/3/16 at 2:03 pm to Old Sarge
quote:There's plenty of people paying interest, especially on their lower level cards.
Holy cow
10,000 approvals in the first few days?
10,000
Just say $1,000 worth of rewards given out per card as incentives, based on 100,000 points given per card
$10,000,000
Marketing Cost to launch the card????????
Posted on 9/3/16 at 3:28 pm to Joshjrn
quote:
Joshjrn
You are absolutely right about that. I was just referring to just the sign-up bonus. As far as GE credit goes, not everyone uses that benefit. Including me, who has had maybe 5-6 cards that gave this free. So I am sure Chase has a per card valuation on that which is certainly not at $100 (100%). $300 travel credit nets them like the interchange fee, so again, while close to $300, it is not at $300. But you are right about these benefits being extremely cash-like.
The 100K sign-up bonus is to attract customers to get the product. Get their foot in the door so to speak. Apart from that, Chase hopes you will keep that card, pay the $450 AF to cover the costs of other benefits plus profit a little from the usage you put on that card. Remember - not everyone is a churner and most likely would have 1 primary card.
After year 1, assuming you've used your GE credit, Chase is charging $450 as AF and you get a $300 benefit. Nets Chase $150, and hopefully, all your other spend.
Btw, to the poster that commented about interest. An AmEx banker explained how interest is not the way banks make money on these "top of the line" cards. These cards are aimed at the Super-Prime market. People who have stellar credit, are among the highest spenders and pay their bills on time. Banks are targeting near risk-free profit through interchange fee through high spend. They don't have to worry about high bad debt expenses and just pocket that small % each time. Therefore, with these super prime cards, interest is a small amount of income and not an intended (or viable) cash flow strategy. This is very very lucrative for banks at the moment.
This post was edited on 9/3/16 at 3:30 pm
Posted on 9/4/16 at 9:24 pm to AmeriKop45
Absolutely all of the above.
Most card companies collect about 2% FOR EVERY TRANSACTION, no questions asked. That's what they factor into bottom line and profit when they shell out these huge promos and sign up bonuses.
It's really a win-win. We collect bonuses to recoup and profit over annual fees. They collect interchange fees from businesses.
For the couple hundred bucks of points out per person, they are collecting that back several times over on the average consumer. Not to mention, the lagniappe of those that keep balances and pay interest.
Most card companies collect about 2% FOR EVERY TRANSACTION, no questions asked. That's what they factor into bottom line and profit when they shell out these huge promos and sign up bonuses.
It's really a win-win. We collect bonuses to recoup and profit over annual fees. They collect interchange fees from businesses.
For the couple hundred bucks of points out per person, they are collecting that back several times over on the average consumer. Not to mention, the lagniappe of those that keep balances and pay interest.
This post was edited on 9/4/16 at 9:26 pm
Posted on 9/5/16 at 3:25 am to SomethingLikeA
quote:
They collect interchange fees from businesses.
A lot of people don't realize that the signup bonus is a great way to work a CC into someone's payment rotation. Forces you to use the card for things regularly.
They pay a little up front to earn all those valuable fees hopefully for years. Churners are a minority of the population
Posted on 9/5/16 at 8:34 am to GenesChin
How does the Global Entry credit work? Do I just schedule it on my own and pay for it with the card and get a $100 credit applied automatically? Or do I need to submit something for credit?
Posted on 9/5/16 at 9:37 am to TigerTatorTots
Whether it's Amex/Chase, you need to use that particular card when you apply for global entry or tsa pre-check.
Once you are approved and you pay with the particular card, you will get a statement credit. That's it.
Once you are approved and you pay with the particular card, you will get a statement credit. That's it.
Posted on 9/5/16 at 9:46 am to TigerTatorTots
I used the card for GE and it appeared as a credit immediately.
Posted on 9/5/16 at 10:00 am to VABuckeye
Sorry to hijack whatever y'all are talking about but I didn't want to start a separate thread. I just got the Southwest Plus card a week or so ago and put about $700 on it already. I checked my Rapid Rewards account to see if I had any points but didn't see any. I went ahead and paid it all off a couple days ago and still don't see any points?
Do I need to do something specific or does it take time?
I'm also worried because I don't see anything about the 50k bonus I was under the impression I'd get after I spend 2k in 3 months. The only promotions I see on my Chase account site are the 50k for the Premier card. I'm gonna be pretty irate if they try and screw me with something.
Do I need to do something specific or does it take time?
I'm also worried because I don't see anything about the 50k bonus I was under the impression I'd get after I spend 2k in 3 months. The only promotions I see on my Chase account site are the 50k for the Premier card. I'm gonna be pretty irate if they try and screw me with something.
Posted on 9/5/16 at 10:15 am to dualed
quote:
I just got the Southwest Plus card a week or so ago and put about $700 on it already. I checked my Rapid Rewards account to see if I had any points but didn't see any. I went ahead and paid it all off a couple days ago and still don't see any points?
Do I need to do something specific or does it take time?
You'll receive any points earned when your statement generates
Posted on 9/5/16 at 10:15 am to dualed
You don't get points until the statement closes. You don't get the bonus until the statement closes after the spend is met. I don't know what bonus you signed up under but if you signed up under a bonus you'll get the miles.
Posted on 9/5/16 at 10:27 am to VABuckeye
Appreciate it fellas
Posted on 9/5/16 at 10:28 am to TigerTatorTots
quote:
How does the Global Entry credit work? Do I just schedule it on my own and pay for it with the card and get a $100 credit applied automatically? Or do I need to submit something for credit?
Just found out that I'm going to have to drag arse down to MSY for the GE interview *grumbles*.
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