Miles for Rent/Mortgage/Tuition? [Consolidated]
#46
Join Date: Aug 2004
Location: Kamuela, Hawaii
Programs: Marriott Titanium, Hilton Diamond, AA Plat, UA Silver, AS MVP, HA premier
Posts: 509
I suspect the problem is that Charge"Smart"'s historical customer base is deadbeats who are delaying the inevitable foreclosure/repo by a few months rather than milehounds like us. The deadbeats a) aren't fee sensitive, and b) probably chargeback a lot.
#47
Join Date: Aug 2004
Location: Kamuela, Hawaii
Programs: Marriott Titanium, Hilton Diamond, AA Plat, UA Silver, AS MVP, HA premier
Posts: 509
Apparently Amex and other credit card companies found certain customer patterns to be strong predictors of default. However, they took a lot of heat for the practice and appear to have discontinued it.
I'm not sure if any credit card companies are still profiling customers based on where they shop.
If so, I suspect that using ChargeSmart will quickly result in big cuts to or cancellation of your credit lines.
I'm not sure if any credit card companies are still profiling customers based on where they shop.
If so, I suspect that using ChargeSmart will quickly result in big cuts to or cancellation of your credit lines.
#48
Join Date: Feb 2010
Location: San Francisco
Posts: 9
You see, even if the 2nd "security" fee was a dollar, that would be $1 too much, since you're already imposing your business service fee to begin with. I'd rather you raise that fee and make it all inclusive - but to charge that 2nd ridiculous fee and institute an even more ludicirous method of calculation based on the "amount of payments processed to that company" in any given month borders on hilarity - if for no other reason then you can't see how many potential customers you're actually alienating with it.
We have automated most of our fraud detection procedures, but the high dollar, high risk transactions still require more man-power than one might think. Many of these larger payments require follow up telephone calls or emails, which take up additional resources and cost money.
I'm sorry you feel that the second fee is deceptive, and we will work to make our process more transparent. Keep in mind though, this practice actually lowers our margins substantially and doesn't raise the fee for those paying larger than average amounts.
Even if ChargeSmart doesn't work for your particular card reward or cash management strategy, we appreciate your the discussion and will take a serious look at the suggestions we've received from it.
#50
Join Date: Feb 2009
Programs: DL, CO, Hilton, SPG
Posts: 597
I don't know how to explain it, just go to the site and type in the information that's required. You need one of your statements because you need the exact address to which your payment would normally be mailed so that it is credited properly.
#51
FlyerTalk Evangelist
Join Date: Dec 2002
Location: Danville, CA, USA;
Programs: UA 1MM, WN CP, Marriott LT Plat, Hilton Gold, IC Plat
Posts: 15,716
Apparently Amex and other credit card companies found certain customer patterns to be strong predictors of default. However, they took a lot of heat for the practice and appear to have discontinued it.
I'm not sure if any credit card companies are still profiling customers based on where they shop.
If so, I suspect that using ChargeSmart will quickly result in big cuts to or cancellation of your credit lines.
I'm not sure if any credit card companies are still profiling customers based on where they shop.
If so, I suspect that using ChargeSmart will quickly result in big cuts to or cancellation of your credit lines.
It is too bad that the merchant hasn't been able to develop a program that is better capable of predicting chargebacks. But maybe that's why banks that process visa, mc and amex charge merchants 2-3% on average - to cover risk as well. Perhaps it is smarter to charge a much lower fee for lower amounts - though of course that makes it a loser proposition for those of us who would be stuck with the "insurance" fee.
#52
Join Date: Feb 2009
Programs: DL, CO, Hilton, SPG
Posts: 597
If so it would not follow historical pattern. Amex has cut credit limits for people who shopped at WalMart, charged marital counseling sessions, etc. (query why WalMart would continue to accept Amex though perhaps it doesn't care so long as it gets paid). Using a credit card to pay off installment is not necessarily a predictor of default unless you have data that I haven't seen (if so I'd think all those balance transfer offers would disappear) . In fact I'd wager many FTers would charge mortgages of mileage cards if the price was low enough
It is too bad that the merchant hasn't been able to develop a program that is better capable of predicting chargebacks. But maybe that's why banks that process visa, mc and amex charge merchants 2-3% on average - to cover risk as well. Perhaps it is smarter to charge a much lower fee for lower amounts - though of course that makes it a loser proposition for those of us who would be stuck with the "insurance" fee.
It is too bad that the merchant hasn't been able to develop a program that is better capable of predicting chargebacks. But maybe that's why banks that process visa, mc and amex charge merchants 2-3% on average - to cover risk as well. Perhaps it is smarter to charge a much lower fee for lower amounts - though of course that makes it a loser proposition for those of us who would be stuck with the "insurance" fee.
#53
Join Date: Aug 2009
Location: Charlotte, NC
Programs: Delta PM, USAir, United, AA, Continental
Posts: 28
What specific link(s) did you click? Where they while you were logged into your account?
#54
Join Date: Feb 2009
Programs: DL, CO, Hilton, SPG
Posts: 597
It is not a feature available through wellsfargo.com, you have to use another company but they charge a ridiculous security fee on top of the payment fee so I am steering clear of this service until they have found a way to reduce or eliminate that charge. With the payment fee and security insurance fee, my payment would be charged more than 3% of my mortgage amount, which is unacceptable to me.
#55
Join Date: Oct 2004
Location: BZN
Programs: AA:LT Platinum DL:LT Gold UA:1P MAR:LT Titanium
Posts: 8,289
Sorry, I didn't understand that you didn't see the link: https://www.chargesmart.com/
It is not a feature available through wellsfargo.com, you have to use another company but they charge a ridiculous security fee on top of the payment fee so I am steering clear of this service until they have found a way to reduce or eliminate that charge. With the payment fee and security insurance fee, my payment would be charged more than 3% of my mortgage amount, which is unacceptable to me.
It is not a feature available through wellsfargo.com, you have to use another company but they charge a ridiculous security fee on top of the payment fee so I am steering clear of this service until they have found a way to reduce or eliminate that charge. With the payment fee and security insurance fee, my payment would be charged more than 3% of my mortgage amount, which is unacceptable to me.
#56
Join Date: Aug 2009
Location: Charlotte, NC
Programs: Delta PM, USAir, United, AA, Continental
Posts: 28
Yeah, that's what I'm trying to figure out... not through this other service... directly to WellsFargo. Even a $10 fee is worth the miles I'd get. After that the law of diminishing returns kicks in.
#57
Join Date: Aug 2005
Location: CLT
Posts: 495
chargesmart deceptive at least
To pay my $2400 BofA mortgage is $14.95 fee, plus $46 "insurance fee." This fee is only disclosed on the very last page prior to paying. No where else on the site is there any mention of this fee, except for the very last FAQ. I doubt seriously that the majority of mortgage payments don't incur this fee. Talk about bait and switch.
#58
Join Date: Feb 2009
Programs: DL, CO, Hilton, SPG
Posts: 597
#59
Join Date: Oct 2004
Location: BZN
Programs: AA:LT Platinum DL:LT Gold UA:1P MAR:LT Titanium
Posts: 8,289
I doubt there's a way. For someone with a larger payment, say $5,000/month, the mortgage company would be eating far too much in processing fees to allow it. Would love to be proven wrong, however.
#60
Join Date: May 2004
Posts: 54
I would much like to give them the biz on 3K to 8K per month on
mortg. payments, however price needs to come closer to 1 cent/
USD spend, total. I am a big fan of SPG AMEX, so that would need
to change as well. Perhaps, this company can figure a way to
provide the service, and take into acct. the above, if so I'll stop
charging tax payments and give them 140k+ in biz.
mortg. payments, however price needs to come closer to 1 cent/
USD spend, total. I am a big fan of SPG AMEX, so that would need
to change as well. Perhaps, this company can figure a way to
provide the service, and take into acct. the above, if so I'll stop
charging tax payments and give them 140k+ in biz.