Credit card points/rewards

[Jag_Warrior]

Until a year or so ago, I never paid any attention to the reward points that showed up at the bottom of my credit card statements. I almost never carry a balance and mainly use cards for the purchase protections ($50 max liability if someone manages to get into my account), the ability to easily track purchases and payments and the fact that they allow me to dispute charges for bad service or faulty products much easier. And of course, I use cards because I can use the bank's money for free for about 30 days. Almost as a game, I used to track the miles and points on airline and hotel membership cards when I traveled more. But I never really thought about the card points until I finally realized how much money was "sitting" in my account. Now, I only buy things using my credit cards. I'll even use my card to pay for purchases for friends who are about to pay cash when I'm with them. Hand me your cash cause I want those points! :dork:

Do others here also purchase things using their cards that they would otherwise pay cash for? Do banks in Europe and Asia also offer rewards? Do merchants in Europe charge fees for using cards or do you just avoid those who do?

[gadjo_dilo]

I never pay by card. I just love to feel money filling my pockets. :devil:

[GridGirl]

I have an American Express Nectar credit card that I use for everything possible. I gain points by using the card but also gain extra points by purchasing products from companies within the Nectar reward scheme. Until very recently it included Amazon which gained me tonnes of points but I also use it at Ford when getting my car serviced or repaired, buying my groceries as well as for at least 75% of items I purchase online. I usually cash my points in once a quarter these days and get around £100 back. Previously I've cashed my points in to buy my sat nav, Apple TV, Nintendo DS and my Dyson vacuum cleaner.

Interestingly Jag, I just got a letter last week saying that I would have to start paying a fee for my AmEx. I've never paid a fee for any credit card before so this might be a new thing. I weighed it up and the fee is worth paying for the amount of points and therefore cash I earn back on purchases I would be making regardless.

[Mark]

I used my Nectar card for all purchases I did at Leeds Sainsburys and petrol station for 3 years while I worked down that way. Amounted to about £100 of points.

After I left we started to use my wife's card and I thought I should cash mine in. Went to find the balance and it was zero. Seems they expire if you don't use your card for a year :(

[airshifter]

I use the points card most of the time, unless I just have excess cash in my pocket I want to get rid of. For some things I still like carrying cash, just to avoid the possibility that a card reader is down or something. I've got a few hundred in cash sitting in my current card balance, should cash it in soon. I might add that some store cards now also offer a discount. As an example Target gives 5% off at the register on every purchase if you use a Target card.

Card companies have made nothing off of me or my wife for many years. Similar to Jag it's simply a "borrow money for free" thing.


Funny story on points cards. After retirement one of my uncles and his wife tooled all around the US in an RV, just checking things out and playing golf mostly. They used an airline points card for most purchases and then used the points on occasion to fly home and visit the kids and grandkids. At one point he decided to get a larger RV and wanted to use his card for the purchase. They wouldn't let him do it. :)

[Firstgear]

Funny story on points cards. After retirement one of my uncles and his wife tooled all around the US in an RV, just checking things out and playing golf mostly. They used an airline points card for most purchases and then used the points on occasion to fly home and visit the kids and grandkids. At one point he decided to get a larger RV and wanted to use his card for the purchase. They wouldn't let him do it. :)

I use my card for the 'points/free money for a month' thing as well and always pay off any balance.

I went through a similar thing as your uncle with my last car purchase - trying to max out my card for the points. The most they (the dealership) would allow me to put on the card was $5000. They told me it just gets to expensive for them, as they have to pay a percentage to the credit card company. Trying to force their hand, I told them it's either the card or a personal cheque - thinking they'd rather avoid the risk of a cheque bouncing and let me use the card afterall. They went for the cheque.

[schmenke]

The wife and I each have a Visa Avion card where every dollar charged earns air miles that can be used towards ticket purchases on just about any airline (plus hotels, rental cars, etc).
A few months ago we finished up some extensive home renovations where we purchased several thousand dollars worth of material using our cards, paying the balance off at the end of each month. We earned a poopload of air miles this way :)

[airshifter]

I use my card for the 'points/free money for a month' thing as well and always pay off any balance.

I went through a similar thing as your uncle with my last car purchase - trying to max out my card for the points. The most they (the dealership) would allow me to put on the card was $5000. They told me it just gets to expensive for them, as they have to pay a percentage to the credit card company. Trying to force their hand, I told them it's either the card or a personal cheque - thinking they'd rather avoid the risk of a cheque bouncing and let me use the card afterall. They went for the cheque.

Sounds like what he did. He tried to play hardball but they weren't bluffing. I forget the cost of his RV after trade but it was a lot more than they were willing to allow. I suggested to him later that he might have wanted to check into it, as in many places it is illegal for them to set limits unless it is displayed within the facility. For some reason strange laws in much of the US (if not all) state that you can't charge a different amount for credit card charges. You can however offer a discount for cash payments.

[Firstgear]

You can however offer a discount for cash payments.
I notice that when I'm in the States too, especially when filling the tank - cash is king.

[Jag_Warrior]

I use my card for the 'points/free money for a month' thing as well and always pay off any balance.

I went through a similar thing as your uncle with my last car purchase - trying to max out my card for the points. The most they (the dealership) would allow me to put on the card was $5000. They told me it just gets to expensive for them, as they have to pay a percentage to the credit card company. Trying to force their hand, I told them it's either the card or a personal cheque - thinking they'd rather avoid the risk of a cheque bouncing and let me use the card afterall. They went for the cheque.

I don't know if they still do it, but GM/Chevy offered a credit card at one time. I never checked into it, but I assume you could put your downpayment on it. Or maybe not. Not sure what it was about. But I remember seeing that you could get points that could be used at dealerships for oil changes, maintenance and various swag like Corvette jackets and such.

Funniest story I have about things being bought on a card is my uncle who has an Amex Platinum card and he bought a house with it. I'm not sure of the exact price. It was an investment property he found while traveling and he put it on his card somehow. I don't know if those cards give points though.

I guess as long as not too many people get on this bandwagon (buying EVERYTHING on a card, paying the balance each month and racking up the points/rewards), the companies will keep this gravy train going. It just gives me a warm, happy feeling knowing that I'm getting over on the banks. :)

[Malbec]

I guess as long as not too many people get on this bandwagon (buying EVERYTHING on a card, paying the balance each month and racking up the points/rewards), the companies will keep this gravy train going. It just gives me a warm, happy feeling knowing that I'm getting over on the banks. :)

Oh no, the banks are getting one over on you ;) They more than make up what they pay you through the fees they get from the businesses you buy from.

I've resisted supermarket reward cards because its one huge data-mining exercise and it doesn't suit my paranoid nature. Over ten years ago I met someone at a dinner party who ran a company that sorts out a loyalty card scheme for a major UK supermarket and frankly it scared me exactly how much information they could get from seemingly innocuous information like what brand detergent you buy. I read recently that things are so advanced that they can predict two or three years ahead that a woman is planning to have kids and will subtly shift the advertising she receives to reflect that she would be preparing for this (like home improvement products etc).

Since I've already got my mobile phone and search engine spying on my every move I don't want to add to my corporate surveillance with a loyalty card.

When it comes to credit cards however as they say everyone can be bought for a price, and my price is 1.5% cashback on my Amex card. The problem with this is that very few shops take Amex in the UK because of the exorbitant fees they charge businesses.

I've also used credit cards that charge 0% for a year as cheap loans in the past, then closed the account once I've paid it off. I'm not sure exactly how the banks make money on those deals but I'm sure they do somehow.

[airshifter]

Oh no, the banks are getting one over on you ;) They more than make up what they pay you through the fees they get from the businesses you buy from.



But the banks doesn't get anything from the consumer in that instance, they take the return to the consumer from the business you purchase some. If more businesses were smart they would offer cash discounts so they could screw the banks as well.

[Jag_Warrior]

But the banks doesn't get anything from the consumer in that instance, they take the return to the consumer from the business you purchase some. If more businesses were smart they would offer cash discounts so they could screw the banks as well.

Exactly! What goes on between the banks and the merchants doesn't concern me. Until the merchants begin charging more for using credit cards, I'll keep using credit cards... and cashing those neat little rewards checks they send out from time to time. :)

As for any concerns about the rewards cards being unique, with regard to data mining, they are babes in the woods compared to Acxiom. And it really doesn't matter where you live, as Acxiom, with 32 billion records, is the biggest data miner in the world. Even governments access Acxiom when they want to know something about you. Though it's something that I'm also not very comfortable with, I don't think much about it anymore, as there is no way to live in the modern world and avoid being data mined.

[BDunnell]

I've resisted supermarket reward cards because its one huge data-mining exercise and it doesn't suit my paranoid nature. Over ten years ago I met someone at a dinner party who ran a company that sorts out a loyalty card scheme for a major UK supermarket and frankly it scared me exactly how much information they could get from seemingly innocuous information like what brand detergent you buy.

My view exactly, coupled with the fact that I never use stores that offer loyalty cards often enough to render it even slightly worthwhile.

[SGWilko]

Slightly off tangent here, but does anyone use and make money out of the Santeander 123 current account? Most of the utility bills come out of my account as SWMBO does not work. They keep asking me to switch in branch, but hate to pay a wunch of bankers anything for an account.