Speculation: Chase Ink changing 5X categories to 3X?
Oct 14, 2016, 7:21 am
#4
Moderator
Join Date: Jun 2003
Location: Miami, Mpls & London
Programs: AA & Marriott Perpetual Platinum; DL & HH Gold
Posts: 48,953
Moderator action
Thread title edited for clarity after transfer from Manufactured Spending.
5X is a loss leader to establish the INK brand in the small business card segment. Once Chase has met their market share objective they could probably maintain it at 3X, and allowing existing INK Plus cardholders to continue to earn 5X for a period would be an effective way to keep them paying the annual fee. It's less clear why they would grandfather INK Cash cardholders, because there is no annual fee.
5X is a loss leader to establish the INK brand in the small business card segment. Once Chase has met their market share objective they could probably maintain it at 3X, and allowing existing INK Plus cardholders to continue to earn 5X for a period would be an effective way to keep them paying the annual fee. It's less clear why they would grandfather INK Cash cardholders, because there is no annual fee.
Oct 14, 2016, 7:36 am
#5
Join Date: Dec 2015
Posts: 530
I don't think Chase is going to GF old card holders for very long. I also 100% buy this rumor since 5x category is a clear loss case for Chase. I'm not exactly sure what Amex will do it its recently launched 5x copycat of Ink.
That said, earning 3x on gas is a pretty good deal imo. You also get to earn 3x on hotels (Ink+) or 3x on dining (Ink Cash). If you don't travel much but dine a lot then CSP+ Ink Cash might be superior to CSR+Ink Cash.
All in all, an expected change and I'm glad the card wasn't nerfed to hell.
Oh and the source is doc.
http://www.doctorofcredit.com/rumor-...lders-changes/
That said, earning 3x on gas is a pretty good deal imo. You also get to earn 3x on hotels (Ink+) or 3x on dining (Ink Cash). If you don't travel much but dine a lot then CSP+ Ink Cash might be superior to CSR+Ink Cash.
All in all, an expected change and I'm glad the card wasn't nerfed to hell.
Oh and the source is doc.
http://www.doctorofcredit.com/rumor-...lders-changes/
Oct 14, 2016, 8:12 am
#6
Moderator
Join Date: Jun 2003
Location: Miami, Mpls & London
Programs: AA & Marriott Perpetual Platinum; DL & HH Gold
Posts: 48,953
They likely won't change it. Airfare transactions include specific details which provides an additional revenue stream because American Express can sell targeted ads for hotels, cars, restaurants, attractions, etc at the destination. They can also feed it into their fraud detection algorithm.
Office supplies and telephone service don't provide the same opportunity.
Office supplies and telephone service don't provide the same opportunity.
Oct 14, 2016, 9:09 am
#7
Join Date: Dec 2015
Posts: 530
They likely won't change it. Airfare transactions include specific details which provides an additional revenue stream because American Express can sell targeted ads for hotels, cars, restaurants, attractions, etc at the destination. They can also feed it into their fraud detection algorithm.
Office supplies and telephone service don't provide the same opportunity.
Office supplies and telephone service don't provide the same opportunity.
Oct 14, 2016, 9:20 am
#8
Moderator
Join Date: Jun 2003
Location: Miami, Mpls & London
Programs: AA & Marriott Perpetual Platinum; DL & HH Gold
Posts: 48,953
Oct 14, 2016, 11:12 am
#12
Moderator
Join Date: Jun 2003
Location: Miami, Mpls & London
Programs: AA & Marriott Perpetual Platinum; DL & HH Gold
Posts: 48,953
This is all speculation, they could do anything, but when businesses make these changes they are not only interested in improving profits on this product, they are also signalling intentions to their competitors. Reducing 5X cards to 3X sends a clearer message than tinkering with the details.
Oct 14, 2016, 11:39 am
#13
Join Date: Sep 2012
Posts: 4,431
My AF for the Ink Plus posted on 10/1. I was going to call for retention in the next week, but now I'm wondering if I should just convert it to the Ink Cash (also 5x UR, but $25K/yr limit). I have the CSR so I don't technically need Ink Plus to transfer UR to travel partners. The way I see it, if I PC it to Ink Cash now, I can lock in 5x, at least for a couple years (maybe), but if I keep Ink Plus and eventually convert to Ink Plus when retention offers run dry, then I'll be stuck with 3x.
On the other hand, my wife has the Ink Plus so maybe I can just get an AU for her card and use that as my 5x.
On the other hand, my wife has the Ink Plus so maybe I can just get an AU for her card and use that as my 5x.
Oct 14, 2016, 11:51 am
#14
Join Date: Jan 2016
Posts: 127
So I'm in the process of likely changing jobs in the next few months. My Ink Plus card is in the name of a partnership I'm currently working for and which I'm a partner in. If I change jobs, can I simply change my address to my home address and keep the card? Can I simply transfer it to the name of my new company without reapplying for new card? I would like to keep the grandfathered 5x benefits as long as I can and if I have to apply for a new card under my new business after the new changes go into effect (if they do), it sounds like I would not receive the benefit of being grandfathered in. Anyone have any thoughts on this?
Oct 14, 2016, 11:52 am
#15
Moderator
Join Date: Jun 2003
Location: Miami, Mpls & London
Programs: AA & Marriott Perpetual Platinum; DL & HH Gold
Posts: 48,953
Let's assume the rumor is exactly accurate and that Reserve and INK both end up as 3X cards with different categories and different fees, and that you need a fee-paid card for airline transfers. Which is more valuable for you long term: Reserve ($150, 3X travel & dining) or INK Plus ($95, 3X supplies, phone, internet, gasoline and hotels)?