Originally Posted by
Orange County Commuter
you’re missing one key factor. There also has to be no corresponding increase in spend by someone currently not having a fit. And that’s where the problem lies.
Delta American Express etc. don’t care if it’s your $, my $1, or someone who has never flown Delta before in their life. The money is all that matters.
and I know we all want to believe that no one will ever spend any money after we leave but history shows it’s that’s probably not going to happen
The thing is, getting a new cardholder for a premium annual fee credit card has a relatively high fixed cost for the card issuer. People expect to get a value beyond that first annual fee back to them from the sign up bonus. AmEx has dealt with the by adding in the ‘once in a lifetime’ language to significantly reduce their card churn rate so they don’t have to pay out as many SUBs.
There’s also the new language about SUB eligibility out that reduces the ability to get SUBs for lower cost cards if you’re already gotten a SUB for a premium annual fee credit card.