Organic versus Manufactured spend to earn new account bonus with AA mailers?
Jun 12, 2019, 10:20 am
#17
Join Date: Apr 2008
Posts: 615
Yep, same for me. I'll pay the 2+% fee for 60-75k points, no question. Only way I can do a monthly churn since liquidating GCs for me is a PITA.
Jun 13, 2019, 2:58 pm
#18
Join Date: Aug 2010
Location: LAS, MPL
Programs: DL Platinum, 1 MM
Posts: 1,320
I wouldn't call it MS, but between taxes, insurance, club dues and my wife's haircuts we can do about 10 AA cards a year. On the taxes I pay the 1.xx percent service charge mark up, on the rest I guess I pay the built-in credit card mark up. One way or another, we pay.
Jun 13, 2019, 3:08 pm
#19
FlyerTalk Evangelist
Join Date: Jul 2006
Location: Upper Sternistan
Posts: 10,034
That assumes you have an option to pay cash at a discount.
Jun 14, 2019, 8:09 am
#20
Join Date: Aug 2010
Location: LAS, MPL
Programs: DL Platinum, 1 MM
Posts: 1,320
Jun 14, 2019, 8:39 am
#21
FlyerTalk Evangelist
Join Date: Jul 2006
Location: Upper Sternistan
Posts: 10,034
Then I'm losing your original point. Is it that since we're all paying this markup that is built into everything, we're all really paying for these credit card bonuses we're getting?
Jun 14, 2019, 12:30 pm
#22
Join Date: Aug 2010
Location: LAS, MPL
Programs: DL Platinum, 1 MM
Posts: 1,320
That's exactly my point. Banks typically don't lose money on credit cards (except maybe Chase on some of their's), so yes, somebody is paying for the bonuses. I call it the skimming economy. Give or take 3% is "skimmed" from every credit card transaction by the Visas and Amexs of the world. In return, some of us get sign-up bonuses, some of us get to enjoy free credit (the grace period), we all get the convenience of whipping out a piece of plastic at the store instead of carrying copious amounts of cash. And then there are quite a few who get to pay 25% interest on their balances.