Schwab Invest Visa? 2% cash back on everything? [Discontinued card]
Sep 12, 2011, 7:44 pm
#1112
Join Date: Jan 2003
Location: NYC
Posts: 8,498
I don't get why anyone would pay the $75/year for the Prestige card with 1% cash back. You can get quarterly rotating 3x or even 5x bonuses on any number of fee free cards (Chase Freedom, Discover, etc.). And the extra 40bps you get if you have a BoA bank account doesn't even pay back the $75 fee until you spend almost $20k per year.
There was a time when I had three different cards (from Citi, Chase and HSBC) that gave 5% cashback on all gas grocery and drugstore purchases all the time (although subject to annual limits). Alas, all those cards got "enhanced" to lower rewards as well.
Oh well. I guess I'll keep the fee free BoA card in the drawer for the occasional Fandango Visa Signature promo. But I'll probably get a PenFed Amex and use my (shudder) CapOne Visa as backup for forex stuff.
Oh well. I guess I'll keep the fee free BoA card in the drawer for the occasional Fandango Visa Signature promo. But I'll probably get a PenFed Amex and use my (shudder) CapOne Visa as backup for forex stuff.
Sep 12, 2011, 9:09 pm
#1113
FlyerTalk Evangelist
Join Date: Jul 2006
Location: Upper Sternistan
Posts: 10,028
I'd like to make two quick points here about the last few days of posts:
1 - The "discount rate" or fee that merchants pay to their bank to accept this card is probably greater than 3% on average. Yes, the average Visa is close to 2%, but this is a Signature with features, and there is a different schedule on the interchange list for this type of card. No merchant pays only 2% when we use this card.
2 - While getting 3% from merchants seems like it should make a 2% card profitable, even with customers who pay in full each month, the proof is in the pudding. No other bank offers one; the one that did is pulling it. It's just not profitable or there would have been competitors.
1 - The "discount rate" or fee that merchants pay to their bank to accept this card is probably greater than 3% on average. Yes, the average Visa is close to 2%, but this is a Signature with features, and there is a different schedule on the interchange list for this type of card. No merchant pays only 2% when we use this card.
2 - While getting 3% from merchants seems like it should make a 2% card profitable, even with customers who pay in full each month, the proof is in the pudding. No other bank offers one; the one that did is pulling it. It's just not profitable or there would have been competitors.
Sep 13, 2011, 12:40 am
#1114
FlyerTalk Evangelist
Join Date: Jul 2003
Posts: 11,377
1 - The "discount rate" or fee that merchants pay to their bank to accept this card is probably greater than 3% on average. Yes, the average Visa is close to 2%, but this is a Signature with features, and there is a different schedule on the interchange list for this type of card. No merchant pays only 2% when we use this card.
2 - While getting 3% from merchants seems like it should make a 2% card profitable, even with customers who pay in full each month, the proof is in the pudding. No other bank offers one; the one that did is pulling it. It's just not profitable or there would have been competitors.
Sep 13, 2011, 6:17 am
#1115
Join Date: Dec 2001
Location: NYC
Programs: AA LT PLT, SPG Gold
Posts: 2,564
I had already been using SPG Amex as my primary card for years prior to getting the CS Visa...so I would strongly suggest going that route. you'll find it's easy to get better than $0.02/Starpoint for hotel/airfare on SPG...so assuming you travel even occasionally you'll likely find the Amex is a superior card. However, now I too am in the boat of those looking for a new backup for the times a vendor doesn't take Amex...or for purchases abroad.
Sep 13, 2011, 8:27 am
#1116
Join Date: Jan 2003
Location: NYC
Posts: 8,498
The most logical non-Amex replacement would seem to be CapitalOne's Cash Rewards Mastercard. No annual fee, no foreign purchase fee, and effective 1.5% cash back on everything (1% on each transaction plus a 50% annual bonus on cash back earned). The only big downside is that it's CapOne, and I've found their customer service to be very difficult to work with. Also I believe you have the manually redeem the rewards, but that's not that big a deal.
Sep 13, 2011, 10:46 am
#1117
Join Date: Apr 2005
Location: ATL
Posts: 802
You are right about the "miser mindset" not making someone 100 million. But I did not use the word miser. FYI, I never made more than about $90,000 annually, but I can cash a check today for 2.6 million and it will clear after some settlements, so I still believe in the total determined mindset of an individual having a great deal to do with wealth accumulation.
Sep 13, 2011, 3:42 pm
#1118
FlyerTalk Evangelist
Join Date: Jul 2003
Location: Florida
Posts: 29,740
I'd like to make two quick points here about the last few days of posts:
1 - The "discount rate" or fee that merchants pay to their bank to accept this card is probably greater than 3% on average. Yes, the average Visa is close to 2%, but this is a Signature with features, and there is a different schedule on the interchange list for this type of card. No merchant pays only 2% when we use this card.
2 - While getting 3% from merchants seems like it should make a 2% card profitable, even with customers who pay in full each month, the proof is in the pudding. No other bank offers one; the one that did is pulling it. It's just not profitable or there would have been competitors.
1 - The "discount rate" or fee that merchants pay to their bank to accept this card is probably greater than 3% on average. Yes, the average Visa is close to 2%, but this is a Signature with features, and there is a different schedule on the interchange list for this type of card. No merchant pays only 2% when we use this card.
2 - While getting 3% from merchants seems like it should make a 2% card profitable, even with customers who pay in full each month, the proof is in the pudding. No other bank offers one; the one that did is pulling it. It's just not profitable or there would have been competitors.
Last edited by Happy; Sep 13, 2011 at 3:47 pm
Sep 13, 2011, 3:45 pm
#1119
FlyerTalk Evangelist
Join Date: Jul 2003
Location: Florida
Posts: 29,740
You are right about the "miser mindset" not making someone 100 million. But I did not use the word miser. FYI, I never made more than about $90,000 annually, but I can cash a check today for 2.6 million and it will clear after some settlements, so I still believe in the total determined mindset of an individual having a great deal to do with wealth accumulation.
Sep 13, 2011, 3:53 pm
#1120
Join Date: Feb 1999
Location: Denver CO
Posts: 3,682
You are right about the "miser mindset" not making someone 100 million. But I did not use the word miser. FYI, I never made more than about $90,000 annually, but I can cash a check today for 2.6 million and it will clear after some settlements, so I still believe in the total determined mindset of an individual having a great deal to do with wealth accumulation.
So too can a great 21 foot jump shot.
Sep 13, 2011, 7:39 pm
#1122
Join Date: Oct 2004
Location: Clinging to the edifices of a decadent past from the biggest city in America nobody really cares about.
Programs: (ಠ_ಠ)
Posts: 9,077
BoA.
Sep 13, 2011, 9:09 pm
#1123
Join Date: Sep 2009
Programs: AA EXP
Posts: 105
I think the fidelity charges a foreign transaction fee....I think the next best card (without any foreign transaction fee) will be CapOne Cash Reward Mastercard (1% but will give 50% match annually = 1.5%). Already applied today for CapOne Cash Reward MC and was approved instantly!
Sep 13, 2011, 9:30 pm
#1124
Join Date: Oct 2004
Location: Clinging to the edifices of a decadent past from the biggest city in America nobody really cares about.
Programs: (ಠ_ಠ)
Posts: 9,077
Got my letter today. Will be drawering BoA card...
I think the fidelity charges a foreign transaction fee....I think the next best card (without any foreign transaction fee) will be CapOne Cash Reward Mastercard (1% but will give 50% match annually = 1.5%). Already applied today for CapOne Cash Reward MC and was approved instantly!
I think the fidelity charges a foreign transaction fee....I think the next best card (without any foreign transaction fee) will be CapOne Cash Reward Mastercard (1% but will give 50% match annually = 1.5%). Already applied today for CapOne Cash Reward MC and was approved instantly!
Blah. Really wish we could have kept the status quo, but oh well...so I guess the questions I really need to answer are:
a) what card to use for non AX purchases domestically? (looking like Capital One Venture for the 2% back via travel.)
b) SPG AX vs Fidelity AX for US spend? (Honestly torn here: value SPG @ $.025 but 2% liquid cash is also nice...need to mull that one over)
c) FX spend? (Guessing either the Venture Card or my Chase PPlus.)
b) SPG AX vs Fidelity AX for US spend? (Honestly torn here: value SPG @ $.025 but 2% liquid cash is also nice...need to mull that one over)
c) FX spend? (Guessing either the Venture Card or my Chase PPlus.)
Sep 14, 2011, 4:02 am
#1125
Join Date: Mar 2003
Location: EWR Ionosphere Club, LAX Clipper Club, Still Traveling Global, yearly BIS miles
Programs: EAL Silver Wings, I-Club, Flying Colonels DL, WorldPass PLat from the olde Meatball and PE SMARTbank
Posts: 1,986
Did anyone get a 2% card?
what is it called?
thanks
what is it called?
thanks