Originally Posted by
mhdena
Chase admitted they lost $300 million with the CSR.
They see the future in fewer renewals coming percentage wise, similarly to why Amex reduced the Business Platinum redemption from 50% to 35%.
Chase cut the sign up bonus to 50K, and changed the definition of "annually".
AMEX raised the AF to $550.
Both trying to stem the bleeding.
However AMEX still wins in the depts of customer service primarily in how to handling claims of all covered benefits. - purchase protection, trip interruption, Med Evac which does not even need to use the AMEX Plat card to pay the initial travel, rental car coverage, and just the general disputes - far better than how Chase handles it as Chase outsources the functions completely while AMEX keeps at least the administration in house afaik last time we used such benefits.
Chase should stay with its own mid market level instead of trying to break in the high end cards market. The decision to incur huge acquisition cost has proved to be a costly mistake so far and it could not wait to make remedy. Some analysts estimate that it would take Chase 5 to 6 years to recoup that acquisition cost. A very large percentage of the new customers acquired probably would not renew anyway whether it devalue the UR program or not. Now with the inevitable devaluation of UR program it just adds MORE attrition to the CSR card, as well as the Freedom and Freedom Unlimited card because now a straight 2% cash rebate card looks a whole lot better. Even for the 1.5% CapOne QuickSilver due to it has no Forex Fee and CapOne does not add any Visa network fee to the transaction unlike with all Chase so-called 0 Forex fee cards actually still incur 1% Visa Network fee built in the exchange rates.