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Old 01-08-2022, 06:47 PM   #41
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I have heard that rebate cards cost the stores more than non-rebate. Some restaurants around here are charging a surcharge of up o 4% for using a credit card, which really bothers me (fortunately I get 5.25% back from my BofA CCR card).
I heard it is all those people who do not pay off their cards every month that are paying for the 2% I get.
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Old 01-08-2022, 06:54 PM   #42
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I have heard that rebate cards cost the stores more than non-rebate. Some restaurants around here are charging a surcharge of up o 4% for using a credit card, which really bothers me (fortunately I get 5.25% back from my BofA CCR card).
I would never pay a surcharge to any restaurant for using a credit card. I mean, how many people actually use cash when dining in restaurants these days? Credit cards are the absolute norm and have been for a long time.
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Old 01-08-2022, 10:45 PM   #43
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I would never pay a surcharge to any restaurant for using a credit card. I mean, how many people actually use cash when dining in restaurants these days? Credit cards are the absolute norm and have been for a long time.
I would never pay the surcharge if it cost me more than what I get back in a rebate (same as paying a surcharge to charge my income taxes). The restaurants are being foolish about this, cash has its own costs, unless the owner is pocketing some of it and not reporting it.
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Old 01-08-2022, 10:50 PM   #44
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I heard it is all those people who do not pay off their cards every month that are paying for the 2% I get.
Combination of that and the merchant fees, which apparently CAN be higher for rewards cards. No actual numbers, but it's mentioned in this article.

https://www.cardratings.com/bonus-or...dit-cards.html
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Old 01-09-2022, 08:22 AM   #45
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Does anyone on this thread have a minimum dollar threshold for dealing with this stuff? I decided a year or two ago that below a certain amount it wasn't worth the hassle unless the reward was a certain dollar amount or more.
Yeah, I don't mess with anything without a $500 equivalent. This year's bonus points were two airlines, AA 50k bonus (plus another 10k spent). Also wifey got the Southwest Airlines with a 100k points (plus another 10k spent). We live in Dallas and have tons of destinations we use these for. An example is sometimes as few as 6500 (Southwest) for return flights to visit her family that would normally be $300 normally to a smaller market location. We also use American sometimes to return from Cozumel with a 12k PT cost for a $350 one way equivalent.

We also get 2% on $30k deposits in a small bank by using the debit card 12 times monthly (on small purchases) and get $600 for that (taxable, so more like $480). I lump this with the CC bonuses...

Other bonus items this year was around $400+$500 bonus on the 2% cash back biz card. Our spending is not crazy, so we reduce our annual spending ($50k) by 5-7% after bonuses, another way to look at it.

The only thing we don't spend CC's on is property taxes and lumber yard as they change 2-3% fees. Debit cards work there.
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Old 01-09-2022, 10:35 AM   #46
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I would never pay the surcharge if it cost me more than what I get back in a rebate (same as paying a surcharge to charge my income taxes). The restaurants are being foolish about this, cash has its own costs, unless the owner is pocketing some of it and not reporting it.
I think it depends on the business. Several years ago the owner of a small family restaurant explained it this way to me:

Suppose I spend $50 on dinner for two. The restaurant's profit is $10 before taxes. If the CC charges 3%, the bank takes $1.50 which is 15% of the restaurants profit. I suspect the this owners cost of handling cash is probably minimal in his mind since he considers it part of his job.

Of course in big stores handling cash has many other costs: - slower cashier lines, more security to deter employee theft, on-going 'cash pickups' at registers that are getting stuffed with cash, and all the counting of the cash that occurs after hours when the register translations are balanced. The people who do these jobs don't work for free.

I pay cash if they like. But otherwise I do use my reward cards. And, of course, credit cards do encourage more spending by removing the psychology of having to physically remove cash from one's wallet and hand it to somebody else. OUCH!
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Old 01-10-2022, 09:11 AM   #47
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I donít seek them out. They seek me. As long as it is not a hassle, why not. But I canít see ever having $100k+ in CC charges, unless I end up charging some incredibly expensive vacation!
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Old 01-10-2022, 09:32 AM   #48
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Originally Posted by SecondCor521 View Post
Does anyone on this thread have a minimum dollar threshold for dealing with this stuff? I decided a year or two ago that below a certain amount it wasn't worth the hassle unless the reward was a certain dollar amount or more.

I guess I'm a bit surprised that people with high spending rates are still chasing bonuses of a few hundred dollars. Probably the same old story: hard to turn off those habits. /snip/
I have purposely chosen cards that are easy/automatic. I only have to remember to use AMEX at the grocery store or getting gas. Everything else on the USAA card. AMZN purchases are automatically put on the Chase card. So, no real effort to get cash back.

I used to "chase" bonuses, but not so much these days since they aren't nearly as great as they were a few years ago.
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Old 01-10-2022, 09:33 AM   #49
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How does that work? Do cashback cards cost more for merchants than other cards?I have not seen any local retail stores around here pushing cash over cards. If anything contactless payment forms are gaining ground.
Generally speaking, yes...the merchant fees are higher for the reward cards.
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Old 01-10-2022, 02:27 PM   #50
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Our cash-back reward total for 2021 was $1,688. That's an average of 2.5% on spend of $68.7K.

Most of that was from the Fidelity 2% VISA. We also have the Amazon 5% card, but overall spend is much lower on that card.

We also have an old AMEX Blue Cash with no annual fee that pays 5% on groceries, gasoline, and drug stores. But we only get 5% after spending $6.5K at 0.5%. Average on that card was 2.4% for the year. So it's still a little better than just using the Fidelity card, but not by much. Just for simplicity, we may stop using this card at some point. It made more sense when we had kids in the house eating groceries and we both commuted.
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Old 01-10-2022, 06:19 PM   #51
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I have purposely chosen cards that are easy/automatic. I only have to remember to use AMEX at the grocery store or getting gas. Everything else on the USAA card. AMZN purchases are automatically put on the Chase card. So, no real effort to get cash back.

I used to "chase" bonuses, but not so much these days since they aren't nearly as great as they were a few years ago.
Yep. After a recent round of signup bonuses, I'm back to just regular cards. Personally I have a three card regime now: a USBank card that gives 4% on travel and gas, another USBank card that gives 4% on eating out, and then the Fidelity Visa which gives me 2% cash back on everything which I count as more than 2% back because in my case I use the cash back into my HSA, which gives me the associated tax benefits which are worth something (how much I'm too lazy to calculate at the moment).
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Old 01-10-2022, 07:36 PM   #52
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Free airline travel-every trip. Since 2012 with the Southwest Card, Companion Pass. It expired again in Dec 2021 and will get it again in a month and be good for 2022/2023.

We use points for the first ticket and the Companion Pass for me to fly free. It's my favorite. Second place is Chase rewards points. I reimbursed about $3000 in food charges this year. If I run out of Southwest points, they transfer there too. A couple years ago they took us lie flat business class to Spain.

I love Credit Card points!
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Old 01-12-2022, 09:58 PM   #53
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We are not big spenders so between the BOA 2%/3%, Citi 2% cashback, Discover 5%, PFCU 5% we netted only $728 but with various bank bonuses we earned an additional $4150. At the end of December, I started using the Wells Fargo 2% Credit card and Citi 5% Custom Card both with a $200 easy bonus and 0% monthly minimum payment for 15 months. They're kinda like a 15 month reverse loan.
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Old 01-13-2022, 05:05 PM   #54
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Made me look. $1,684 for 2021 on credit card points that don't expire( BOA and Chase). We also collected $1,900 in bonuses for opening new checking/savings accounts in 2021( all now closed).
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Old 01-14-2022, 05:42 PM   #55
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Used 1 card only - fidelity Visa @ 2% - approximately $2k for year. Happy with that.

Anybody have info on the USAA card for 2.5%? We are USAA members.
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Old 01-14-2022, 06:09 PM   #56
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3 cards, $544.98 cash back, We are not big spenders.
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Old 01-14-2022, 08:20 PM   #57
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Those of you with big Fidelity credit card rebates should really look into stashing $100k in stock/ETFs at Merrill Edge, so you can qualify for Bank of American Preferred Rewards at the Platinum Honors level. You can get 2.625% back on all purchases with their Premium Rewards card once you are at that level, and 3.5% on dining and travel.
Actually, with Bank of America Customized Cash Rewards card you can get 5.25% on a selected category (3% plus 2.25% [75% platinum honors points]).
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Old 01-14-2022, 08:31 PM   #58
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If you got the BOA Customized Cash card , and stashed $100K at ML , then the preferred rewards with give you 5.25% back on ALL your online shopping not just Amazon.
I think you also get the 5.25% on warehouse clubs (BJ'c,Sams,Costco etc) and gas.
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Old 01-14-2022, 11:51 PM   #59
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I think you also get the 5.25% on warehouse clubs (BJ'c,Sams,Costco etc) and gas.
Warehouse Clubs are only 2/3.5% on the CCR, unless you do an online purchase (possibly using the app, but a recent post said it did not work) and choose the online 3/5.25% category. Gas is also a separate 3/5.25% category.
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Old 01-15-2022, 12:18 AM   #60
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I don't know the exact numbers in credit cards cash back, but we aren't big spenders so it isn't a huge amount. We put what we can on a 2% Fidelity card and 5% Amazon card, including our Whole Foods shopping. WFs 365 house brand prices are pretty good, often comparable to Grocery Outlet prices, and even better with the 5% cash back. Plus WF has free online order and pick up. That is like having a personal shopper for free.

I didn't do any of the credit card games last year as we refinanced the mortgage and I didn't want any new debts on the credit report. I'll probably open a few new cards this year for the bonus miles or cash.

Most of my extra money last year came from product reviews ($6K last year, taxable income) plus a little extra from some odds and ends, like store rewards programs and ink recycling. The other big savings for us usually has been things like seat filler tickets and Facebook specials on event tickets, but last year because of the pandemic that was close to $0.
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