A lot to unpack here.
Originally Posted by
NYC Flyer
Interesting discussion. Can you point us to some specific reports or disclosures addressing this? What are the charge card products they are pushing, or are you simply inferring that the highest cash-back/rewards focused products are positioned as "charge cards" in that the target audience tends to not carry a balance. Capital One certainly has developed products that appeal to this audience, IMHO, and their customer service seems to have improved in recent years to support these cards.
Assuming you are referring to targeted charge card Venture X offers, MIA linked a thread with some data points.
Originally Posted by
NYC Flyer
Chase built quite a mountain, but others are starting to chip away at its foundation and, without innovation on Chase's part, will continue to do so. At this stage, still, I'd guess the numbers signing up for the "perfect starter" rewards card still dwarf those downgrading because they have replaced Chase Sapphire with Bilt, Capital One, Amex Gold, etc. The development of the lounge network, while welcome, is certainly an indicator that the CSR, at $550/yr, had become less relevant than it once (thus, the innovation).
I have not seen any data to suggest Chase market share is decreasing. Can you cite something? If anything, their market share has increased with the, crucially taking over from Amex for PV
https://wallethub.com/edu/cc/market-...d-issuer/25530 All data I have seen on acquisition shows Chase consistently beating all other issuers. I expect to see a lot more consolidation into Chase across banking over the next few years for obvious reasons.
Originally Posted by
NYC Flyer
Visa certainly positioned itself to ride the wave of some very profitable portfolios (Chase Sapphire/United/Costco)
Agreed. Visa is the big winner here with every major issuer besides Amex and Citi (though even Citi has been forced to issue a Costco Visa). In not sure how defensible their market position is but their shareholders (not me) are probably quite pleased right now.
Originally Posted by
NYC Flyer
Certainly, shifting the quality of new accounts/total exposure toward prime/super-prime would help, but whether the new customer acquisitions are for revolving or charge type accounts would not seem to have an impact within this category of customer, IMHO. Shifting existing accounts to different products would not seem to have an impact on overall risk exposure (not to mention that the lowest risk customers are really the target audience for charge products). I've not dug through Capital One's financial disclosures, but could not find any search references to "charge card conversions" and Capital One.
There are many data points of these targeted charge card offers across both FlyerTalk and Reddit, as MIA as linked. I doubt they are doing it for risk either as most data points indicate they are targeting transactors anyway. My best guess would be this being a play at trying to drive more of to capture further interchange revenue. There are cases where I need to make a large purchase (mid 5 figures) and have no option but to put it on an Amex charge card, even if the rewards are sub-optimal.