sethb

No, I am in no sense an agent of Chase. I cannot bind Chase to any agreements, nor act in its behalf.

I am a customer of Chase, or, if you prefer, Chase is my agent (because Chase pays the merchant on my behalf).

Happy

Nobody would have any insider information on exactly how those agreements with partners are. However there are enough information in the 10Q and 10K to give you a better idea on how such agreements might work, instead of "I'd think".

You dont need to know why, you just need to realize such expenditures are incurred and are reported in the 10Q and 10K as required by SEC.

If you so incline, you could dig thru Chase 10Q and 10K to see how much it pays for the partner currencies. The disclosures typically are listed in the Notes of said reports filed with SEC.

As a starter, this is how much United recorded its side of the miles purchased by Chase in UAL's 2013 10K. Note the purchases mentioned are for 2014, 2015, 2016 and 2017 - several years in the future at that time. As mentioned, it is recorded as a Liabilities on the partner's side, an obligation to Chase. Likewise, it is recorded as an Asset on Chase side - it has PAID for such currency and carried them on its book - it will be expensed over time when the miles are awarded to various earning activities.

https://www.marketvis.io/stock/ual/f...osuretextblock

Note the word "pre-purchased miles"

Not saying it would have same agreements with hotel loyalty programs, but the likelihood is high that Chase has similar agreements in place with their partners, as that is pretty much a standard practice between banks and their partners of the cobranded cards.

Happy

So I got an instant approval of a Hyatt card on Monday, with $5K line for the Visa Signature. Fine with me.

Today I received a letter from Chase dated a day AFTER the instant approval, suggested to me to think about reallocate CL from my existing Chase card to better meet my needs. Should I like to do so, I can talk to the CSR when activating the card (which has yet to arrive despite it shows up online the evening of the approval).

I have never received such letter from Chase before. Last time the bank simply took 5K from my Freedom to give my Ink Plus so it was a 10K card instead of a 5K card. Then a letter to inform me such AFTER the fact.

Once again, Chase treats co-branded cards completely differently than its own in-house cards.

RNE

First, thank you for agreeing with me that the casino analogy is off-base. I won't disagree with your characterization of agency. What I will express is that merchants pay Chase for our using Chase cards to make purchases and Chase in turn pays us a "commission" thereon. Such is the very basis for reward cards.

BOSOGG

Thank you for sharing this info. Over $200 million per year in UA miles! In your investigative sleuthing have you by chance come up with any indication of the number of actual UA miles these dollar figures would represent? It would be very interesting to have a cost per mile value that Chase is paying.

knowledgeispower

Yes I've done some research on this and my understanding is they buy them at $0.01 per mile.

BOSOGG

I would have guessed more like $0.005 per mile, but just a guess, with nothing factual to base it on.

sethb

Chase/United was a special case: the purchase kept them out of bankruptcy (similar to Amex/Delta).

I just looked through Chase's latest 10Q, and found nothing about purchased hotel points. They might be included in "other intangible assets".

Chase's annual report refers to "purchased credit card relationships" but does not go into enough detail to tell. (But the amounts seem less than United is reporting.)

sethb

I'd call it a "rebate" rather than a "commission".

RNE

Whatever you call it, it's the source of our points and miles. Signup bonuses are a loss leader. Chase wants applicants who will use its cards long after meeting bonus qualifications.

RNE, being Capt. Obvious.

slicktraveler

I applied for Marriott Business card 10 days ago got the pending message & today in the mail go a letter from security department saying to call in they want to verify the validity of the application. Any ideas on what this is other than what it says? Does anyone think this means application will be approved?

Mastermind

I have a Hyatt card opened Oct 2013 free nights earned in Nov. 2013
If I cancel the card in Oct. 2015 and reapply in November 2015 earn in Dec 2015 I should be able to earn 2 free nights, correct?

I did open a Ink Plus card in June 2015 (Nov will be 5 months later). Once Hyatt is cancelled it will be my only Chase account. What is the likely hood of also being approved for the Fairmont card if applied in Nov as well?

Credit Score is in the high 700's-low 800's
Household income > $130k

Happy

2 things you need to keep in mind:

1) while Hyatt posted the free nights as soon as you met the spend requirement, Chase most likely considers it as at the statement close date of the billing cycle the bonus is earned. It is prudent to wait 24 months AFTER the Chase statement date, not the Hyatt posting date to be safe than sorry.

2) Chase system does not reflect account cancellation immediately. Factor that into your scheme.

Again, if you jump the gun, when it works, nobody thinks twice about it. When it fails, everyone would kick himself for not wait one more month to do the new app. Only you can decide whether you want to cut it to the max or give it enough leeway.

yiky98

I have 6 new accounts in the last 24 months, 4 of which are within 12 months.

I'd like to try to apply for the CSP card.

But if it gets turned down because of the 5/24 rule, can I apply for a co-branded card without generating additional hard pull?

Sedentary

The closer together the hard pulls are, the more likely they are to be combined. Remember, it's the CRA's that combine the pulls, not Chase.

So, unless you get instant approval for the CSP, I'd recommend doing the second app immediately.