Worldperks Visa - Any Retention Bonus

 
Old Jun 1, 07, 10:34 am
  #1  
Original Poster
 
Join Date: Jul 2001
Location: DTW
Programs: Dirt Status w/ All
Posts: 4,994
Worldperks Visa - Any Retention Bonus

I'm planning on canceling my WP Visa card next month. I've switched to cash back cards as I think they provide a better payback with no annual fee.

Does US Bank offer any attempts at retention for those trying to cancel? I might be willing to keep using it if they waived the annual fee and threw some bonus miles my way. I charged about $30K to it over the last year, paying off the balance monthly if that has any bearing.
tev9999 is offline  
Old Jun 1, 07, 10:42 am
  #2  
 
Join Date: Jan 2007
Posts: 5,643
You paid it off in full every month?!?! That makes you a "deadbeat" as far as the credit card company is concerned!
motytrah is offline  
Old Jun 1, 07, 11:02 am
  #3  
 
Join Date: Dec 2005
Location: DTW
Programs: NW Platinum Elite, *Wood Platinum, HHonors Diamond, Hertz PC, National Exec Elite
Posts: 1,644
Originally Posted by tev9999 View Post
I'm planning on canceling my WP Visa card next month. I've switched to cash back cards as I think they provide a better payback with no annual fee.

Does US Bank offer any attempts at retention for those trying to cancel? I might be willing to keep using it if they waived the annual fee and threw some bonus miles my way. I charged about $30K to it over the last year, paying off the balance monthly if that has any bearing.
They may offer to wave your annual fee, but I wouldn't expect them to give your miles.
kcnwa is offline  
Old Jun 1, 07, 11:14 am
  #4  
 
Join Date: Nov 2006
Location: Lost in Space
Programs: MR Plat, AA EXP, Hertz Presidents Club, SPG Plat
Posts: 170
Originally Posted by motytrah View Post
You paid it off in full every month?!?! That makes you a "deadbeat" as far as the credit card company is concerned!
That is not true. They do not only make money on the interest they charge the card holder. They make money off the merchants as well. I am willing to bet they make more money off of business cardholders who charge everything and spend $30k a year and pays it off every month vs a consumer who carries a $5000 balance.
jetlagjunkie is offline  
Old Jun 1, 07, 11:16 am
  #5  
 
Join Date: Dec 2005
Location: DTW
Programs: NW Platinum Elite, *Wood Platinum, HHonors Diamond, Hertz PC, National Exec Elite
Posts: 1,644
Originally Posted by jetlagjunkie View Post
That is not true. They do not only make money on the interest they charge the card holder. They make money off the merchants as well. I am willing to bet they make more money off of business cardholders who charge everything and spend $30k a year and pays it off every month vs a consumer who carries a $5000 balance.
Typically 2-4% merchant fee plus usually .50 cents "transaction fee"
kcnwa is offline  
Old Jun 1, 07, 11:20 am
  #6  
FlyerTalk Evangelist
 
Join Date: Sep 2003
Location: DL Silver, HH Diamond, IHG Plat, BW Diamond
Posts: 26,256
Originally Posted by kcnwa View Post
Typically 2-4% merchant fee plus usually .50 cents "transaction fee"
I believe that most of the Interchange fee is passed through to the issuing card. This is generally in the 1.6% range for Visa and Mastercard. So a $30k spend would generate $450 or so to the issuing card/network.
Jaimito Cartero is offline  
Old Jun 1, 07, 11:36 am
  #7  
 
Join Date: Jun 2005
Location: DTW
Programs: Delta Plat, Starwood Gold
Posts: 221
Originally Posted by tev9999 View Post
I'm planning on canceling my WP Visa card next month. I've switched to cash back cards as I think they provide a better payback with no annual fee.

Does US Bank offer any attempts at retention for those trying to cancel? I might be willing to keep using it if they waived the annual fee and threw some bonus miles my way. I charged about $30K to it over the last year, paying off the balance monthly if that has any bearing.
They can definelty waive the fee if they want to.....I sent in to cancel my citibank AA card. They called me and offered to waive fee so that I would keep it.
Bran28 is offline  
Old Jun 1, 07, 12:51 pm
  #8  
 
Join Date: Jan 2007
Posts: 5,643
Originally Posted by jetlagjunkie View Post
That is not true. They do not only make money on the interest they charge the card holder. They make money off the merchants as well. I am willing to bet they make more money off of business cardholders who charge everything and spend $30k a year and pays it off every month vs a consumer who carries a $5000 balance.
I was being a bit tounge and cheek about it, however card companies actually do call customers who pay off balances every month "Dead Beats".

The issuing bank (US Bank) get's a portion of the Interchange Fee (Visa takes a cut from the Interchange as well.) Another chunk of which they share with NW for the miles. I'd say US Bank would be lucky if they ended up with more than .5% in fees after expenses. It's still money on the table, but they'd really really like you to run a balance.
motytrah is offline  
Old Jun 1, 07, 12:55 pm
  #9  
FlyerTalk Evangelist
 
Join Date: Nov 2002
Location: Freeload Univ. Where are you sitting?
Posts: 13,546
I've tried to cancel a couple of cards. They passed me off to a "retention specialist". After a short conversation, they offered to waive the fee. A little later they offered some miles (2000 to 10,000, depending on the card).

I just smiled and reluctantly said OK.

And I usually either put nothing on the card after the initial spend to trigger the bonus, or else pay the balance off every month.
BigLar is offline  
Old Jun 1, 07, 1:58 pm
  #10  
 
Join Date: Jan 2007
Posts: 5,643
To a certain degree having good credit helps in terms of retention. While you may be a "dead beat" to them in terms of actual cash, on paper most of us that pay off cards every month have good income and great credit. That enhances the value of the porfolio. There is some value to US Bank just for having the card. The retention department will make a call based on the value we bring and how much they want to spend to retain that.

Here's an interesting question. Is there a better time of the month to call? Like is calling the last day of the month better than the first day?
motytrah is offline  
Old Jun 1, 07, 2:13 pm
  #11  
myk
 
Join Date: Dec 2005
Programs: Hilton Diamond, JetBlue Mosaic
Posts: 517
I just saw on my bill that I got charged the $55 annual fee for the coming year. so I decided to cancel it. I don't use the card, and $55 is a lot of money when you consider you're getting something of roughly 1% cash back (1 cent per mile, 1 mile per dollar). So I called and asked to cancel. They said "No problem sir, have a good day"

and in retrospect what a craptastic bank. They cut off your online access to pay your bill the second you say "cancel". So now lets say you have a payment due on.. Sunday.. which I do (..., who makes things needed-to-be-postmarked on a sunday), you need to call and make it over the phone, and they will NOT waive the $10 phone payment fee

im so glad to not be doing business with them anymore as of today

Last edited by myk; Jun 1, 07 at 2:21 pm
myk is offline  
Old Jun 1, 07, 2:58 pm
  #12  
 
Join Date: Oct 2003
Location: Seattle, Wa
Programs: DL Diamond 1MM
Posts: 111
Not sure what version of the card I got (don't see it offered anymore) but I have no annual fee (I check all bills closely) and a $10000 limit. Even thoughI always pay up full, they keep increasing the limit. Guess they hope to reach a point where I can not pay .
ttk56 is offline  

Thread Tools
Search this Thread