Questions tagged [reward-program]

For questions related to credit card, bank, or merchant reward programs.

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56
votes
8answers
9k views

Gigantic point amount on rewards card - what are potential consequences?

Recently, I asked with an online form for some receipts to get added to my rewards card (because I forgot the card when paying). However, they accidentally added more than a thousand times the amount ...
32
votes
4answers
7k views

How does the math work when buying airline miles?

Signing up for credit cards to get airline bonuses and flying more are good options to earn miles. With an average redemption/valuation of 1 cent/mile or maybe 1.2 cents/mile why would it make sense ...
31
votes
3answers
14k views

Why does Chase Freedom require me to “activate” my card for rewards every quarter?

Note: The "activation" I am talking about here is not the same as the "activation" in this question. I just got a Chase Freedom credit card, mostly for the 5% cash back rewards. I had seen that ...
27
votes
5answers
2k views

Are credit card rewards taxable?

There have been several questions about reward point/loyalty programs offered by credit cards Best Travel Point Credit Cards Best Reward Benefit Credit Cards Easy Comparison of Reward Benefit Cards ...
12
votes
4answers
964 views

Are there cons to paying monthly bills with a rewards card and then paying it off monthly?

I have a rewards card I really like and we have about $5k in bills monthly. Almost all of them I could setup to pay out of this card. That would earn about $600+ in rewards annually, which would ...
12
votes
4answers
92k views

How can I determine which stores are regarded as supermarkets for a rewards credit card?

I'm considering applying for a credit card which offers additional rewards on supermarket purchases. How do I determine which stores in my area are considered supermarkets by the card issuer? For ...
12
votes
2answers
1k views

Why are earning credit card rewards often tied to groceries and gas?

Is there a business model that makes those more attractive categories for the issuers?
12
votes
3answers
578 views

Why do cash back credit cards give a higher rate for dining and gasoline purchases?

Title says it all. For example the Amazon.com Chase card gives 3 points/dollar for Amazon purchases, 2 for gas station and dining purchases, and 1 point for everything else. It's obvious that money ...
11
votes
2answers
2k views

Why does Discover Card warn me about selecting certain payment due dates?

The date I would like to use for my payment due date in the future on my Discover Card account warns me with a tooltip: Selecting this date will reduce the number of days in the current anniversary ...
9
votes
2answers
749 views

Are travel point / reward credit cards worth the hassle and cost?

Are travel point / reward credit cards worth the hassle and cost? Many such cards have fees, and when you try to book there are often restrictions. What has your experience been with these types of ...
9
votes
4answers
1k views

How do you find the credit card with the best rewards/points? [US]

I'm using a CC that basically gives me 2% cash back on everything. It adds up, but I have a feeling that I'm not benefiting from how often I use my card. I easily put over a thousand each month on the ...
8
votes
5answers
21k views

Can you buy gift cards at grocery store to receive a higher reward rate?

Numerous websites such as this Time article or this Nerdwallet page say you can buy gift cards at grocery store to get the higher category rate when applicable. You can purchase gift cards at ...
8
votes
7answers
23k views

Should I use cash back rewards for rewards, or to pay off the balance?

I have a credit card with cash back rewards. I can use these rewards to go shopping on Amazon, for example, to buy gift cards, to pay off the balance, and possibly some other options that I may have ...
8
votes
6answers
298 views

Are credit card membership points best used for swag or for travel?

As far as I can tell, most reward point programs are confusopolies. I have a difficult time figuring out how much my points are really worth since the exchange rate seems to vary depending on what ...
8
votes
1answer
1k views

How do credit card companies track your purchase categories?

I've seen a few responses scattered on the internet that attempt to answer this but they seem to disagree on the matter. When dealing with cash-back credit cards, they offer different percentages for ...
7
votes
2answers
529 views

What's the benefit of a credit card with an annual fee, vs. a no-fee card?

My credit cards don't have an annual fee. I get mailers from American Express all the time and I see that card has an annual fee. I know a few friends and see a lot of people subscribed to such cards ...
6
votes
3answers
2k views

Can someone earn money from Credit Card Cash Back by buying and selling back and forth?

If I understand cash back programs correctly, the Credit Card companies give you back a percentage of the money you spent on a purchase. 1% would give you back $1 on a $100 purchase. If this is the ...
6
votes
3answers
5k views

Should I cancel an existing credit card so I can open another that has rewards?

I have four credit cards. One has a cash back rewards, one a discount, and the other two do nothing for me. However, one of those two is my oldest card, so I cannot close that account. I would like ...
6
votes
2answers
322 views

How to enter credit card “statement credits” (e.g. cash back) in double entry accounting? [duplicate]

A credit card statement credit is a reduction in liability, so I would think it's "income" of a sort. But, I could also see it as a reduction in expense; for example, buying a plane ticket using a ...
6
votes
2answers
245 views

how far can one push the signup bonus game?

I have never signed up for cards with signup bonuses with the expectation of canceling, but I am getting curious about it. The signup bonuses range from $250-500, more if you redeem for travel ...
5
votes
3answers
4k views

(Theoretical) Paying credit cards with other credit cards

I want to preface this question by saying that this is theoretical, and I fully understand that it is a slippery slope that could get out of hand if not handled properly, and that the gains do not ...
5
votes
1answer
4k views

Credit card changed by card company: Why is Citi changing my Visa dividend platinum select card to dividend world Mastercard?

My citi divident platinum select card is being replaced with citi dividend world mastercard. I don't quite understand their explanation. But what are the changes on the benefits? why change from ...
5
votes
1answer
4k views

Overpaying credit card to simulate a credit line increase? [duplicate]

I keep my credit card lines small for various reasons (reduce possibilty of impulse purchases, minimize my credit footprint etc) but there are times when certain necessary purchases exceed the amount ...
4
votes
3answers
611 views

Should I trust barcode iPhone apps? Are they secure for rewards and airmiles points collection?

My husband downloaded all kinds of iPhone apps that mimic the barcodes on my rewards cards such as AirMiles, Aeroplan, Longo's, Hallmark etc. Are these types of applications secure?
4
votes
1answer
196 views

Is credit card signup bonus taxable?

If a credit card company offers you $500 for making $1500 in purchases within the first 3 months, is that taxable income?
4
votes
2answers
881 views

Is there a downside to applying for several credit cards for rewards?

Qantas offers several bonuses (mostly frequent flyer points) for applying for some credit card programs and spending X amount within Y months with that card. Most of these cards have annual fees. I ...
3
votes
6answers
230 views

Why use credit card rewards for vendor credit not cash?

Some credit cards (e.g. Capital One, Chase) have rewards programs for using their cards, which can either be used for cash (credit to the credit card itself) or for 3rd party vendor credit (a gift ...
3
votes
2answers
218 views

Is there an easy way to compare store or credit card loyalty programs? How can I tell which is best?

Surely someone has come up with a spreadsheet or calculator to run comparisons?
3
votes
1answer
204 views

Using cash back rewards from business credit card

Are there any tax constraint I should be aware of when using cash back rewards from a business credit card (a C-Corporation with just 1 person, me)? Would taxes go through directly to me for using the ...
3
votes
4answers
455 views

How much do I need to travel for mileage rewards to beat cash back?

I'm happy with my cash-back rewards cards. I pay my balance in full and don't care about the interest rate. Now I'm trying to evaluate a promotional offer for an airline miles card to see if it's ...
3
votes
2answers
92 views

Site to find out which card to use for specific purchases

I've got a couple of large purchases coming up (thousands of dollars). I plan to use credit card for that - I have the money for it, but various credit cards have 1% to 5% cashback bonuses, and with ...
3
votes
1answer
126 views

Rewards credit card for large repeating purchases in Australia

I have no revolving credit card debt: I pay it off every month. I also have a significant throughput of charging/paying off, including a large repeating medical cost that will be at least $3000 every ...
2
votes
2answers
184 views

What is a good credit or debit card that offers a reward with each transaction in the US?

I am looking for a rewards card (credit or debit) where you can earn some number of cents (I've seen 10 or 20) per purchase that you charge to the card regardless of the amount. Something similar to ...
2
votes
1answer
95 views

Change credit card, keep age of credit line?

I have two credit cards that charge fees and have significantly downgraded their value to me. In both cases I would like to switch to no-fee versions of the same card, but I don't want to reduce my ...
2
votes
1answer
152 views

Is there a hidden condition in these T&C?

I went through a FAQ on a website regarding an offer where it mentioned customers using a particular credit card can get a 10% discount. The minimum limit to get the discount is Rs. 6000. 1. What ...
1
vote
4answers
413 views

How do consumer reward point systems work?

For example, Starbucks developed its own point system where customers can collect them and get a free drink. Pretty sure there is a way to make money from it. Or is it just a marketing strategy to ...
1
vote
3answers
469 views

Credit Card with rewards points

My bank is currently offering me a credit card with reward points. Here are the details on it Earn 20,000 bonus rewards points when you spend $2,000 in net purchases (purchases minus returns/credits) ...
1
vote
1answer
231 views

How Credit Card company makes money (when considering rewards and pay full balance every month)

I am aware of two income sources: interest and merchant transaction fees. But it doesn't quite add up. For example, Citi Double Cash pays total 2% cashback. And considering balance is paid off every ...
1
vote
2answers
1k views

How do I calculate what percentages I'm getting back on my credit card on which I get points, not dollars?

So, I have a Scene Visa card (Canadian) which instead of giving me money, gives me points for which I can use for a variety of things, but the most common being movies. How do I figure out what ...
1
vote
2answers
174 views

Can I maximize my credit card rewards and keep a low utilization?

I have seen that low utilization is key to keeping or improving my credit score. My question is more in line with credit limit, cash back rewards, and ulitilization. If I make a purchase and then ...
1
vote
1answer
134 views

Timing between loans and applying for a new credit card

Here's the skinny. I can get answers out of a variety of the question threads here, but putting it all together is a bit of a different matter. Bought a house 18 months ago. Put 20% down, got a 3.5% ...
1
vote
1answer
59 views

Rewarding my affiliates [closed]

I could not find a really fitting site and thoight this is the closest. Otherwise please let me know. I own a website where I get income from affiliate links. I would like to give back some ...
1
vote
2answers
378 views

There are 2% cash back (on all purchases) business credit cards, are there ones for individuals? [closed]

I've been searching for a simple, 2% cash back (no exceptions or categories, etc etc) credit card for individuals. My capital one business CC is quite simple - 2% cash back on all purchases. I have 2 ...
0
votes
1answer
470 views

How can credit card companies offer a cash back program? [duplicate]

Many credit cards offer cash rewards or similar programs which effectively amount to a small % discount (at the CC company's expense) for various purchases. For instance, American Express has a card ...
0
votes
1answer
816 views

Do I have to make a minimum payment to my credit card even if the balance is $0 after redeeming rewards?

Let's say this month I spent $50 with the card. The statement comes at the end of the month with a $50 balance and a $30 minimum payment required. Let's say I redeem my rewards on the card, which ...
0
votes
1answer
115 views

Which reward/benefits card is the best value for money in Australia?

As per the question this is based off: Which card do you use and why? Some cards are similar but some not. This will also be affected by personal preference, so indicate why you chose a certain ...
0
votes
1answer
57 views

Relationship between points and air miles

Let us say I have Air Canada Aeroplan card, and if I shop at certain retailers, I accumulate points. Now let us say a particular flight on air Canada cost 100,000 miles. How to know how many points ...
-1
votes
2answers
2k views

Pay Yourself With Credit Card Make Money With Cash Back [duplicate]

Let us say I have a Credit Card that gives 2% cash back on any purchase with Unlimited cash back. Now let's say I also own a business where I'm charged a small transaction fee say 1% of the total ...
-1
votes
1answer
171 views

How soon can I close Amazon rewards credit card after opening?

I got the card today for the $70 sign up 'Gift Card', only have 2 other credit cards with $5,000+ limits with $0 balance on both and want to know when I can close the Amazon account. I only spent ....