Significant change in Penfed cashback visa card

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oneleaf
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Significant change in Penfed cashback visa card

Post by oneleaf »

The recent statement has an announcement that is poor news for many of us who hold the card:


EFFECTIVE MARCH 1,2011, PENFED WILL NO LONGER OFFER 2% CASH BACK FOR SUPERMARKET PURCHASES. YOU WILL CONTINUE TO EARN 5% CASH BACK ON GAS PURCHASES MADE AT THE PUMP AND 1% ON EVERYTHING ELSE, INCLUDING YOUR SUPERMARKET PURCHASES. IF YOU HAVE ANY QUESTIONS, PLEASE CONTACT US AT 800-247-5626 SEVEN DAYS A WEEK OR VISIT PENFED.ORG.
jlq39
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Post by jlq39 »

That's a bummer
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White Coat Investor
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Post by White Coat Investor »

Too bad. But what can you do? When there is a better one out there, I'll switch.
1) Invest you must 2) Time is your friend 3) Impulse is your enemy | 4) Basic arithmetic works 5) Stick to simplicity 6) Stay the course
Chuck
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Post by Chuck »

Stock up on groceries. :)
kirent
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Post by kirent »

EmergDoc wrote:Too bad. But what can you do? When there is a better one out there, I'll switch.
There already is. The Fort Knox Visa Platinum gives 5% on gas and 1.25% on all other purchases. The kicker is you can supposedly pay the balance with another credit card, like the Schwab/FIA Visa and get even more cashback. The card is also supposedly underwritten by PenFed.
Disclaimer: I am not a financial or legal expert and all information I provide is given for entertainment purposes only, at your own risk and with no guarantees of accuracy.
Scorpion
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Post by Scorpion »

This is sad news, especially after they forced us to change card numbers due to data theft... Aargh.
beareconomy
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Post by beareconomy »

Luckily I have a Schwab card to get 2% off groceries. How do you get the fort knox credit card?
Chuck
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Post by Chuck »

stives wrote:There already is. The Fort Knox Visa Platinum gives 5% on gas and 1.25% on all other purchases. The kicker is you can supposedly pay the balance with another credit card
Can you pay the balance with your PenFed card and get 5.95% on gas and 2.2375% on everything else?
kirent
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Post by kirent »

beareconomy wrote:Luckily I have a Schwab card to get 2% off groceries. How do you get the fort knox credit card?
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Disclaimer: I am not a financial or legal expert and all information I provide is given for entertainment purposes only, at your own risk and with no guarantees of accuracy.
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Sheepdog
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Post by Sheepdog »

Well, the lack of grocery rebate didn't hurt me. I still receive annual $800+ rebates thru a seven year old grandfathered MC which pays 5% on all grocery store, drug store, gasoline, Walmart, Kmart purchases. Plus, those items are the only items which I charge with that card. I don't know why they have never cancelled it, but I ain't asking them. I won't even tell you the card name cause someone out there may be jealous.
Ko
Unless you try to do something beyond what you have already mastered you will never grow. (Ralph Waldo Emerson)
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monkey_business
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Post by monkey_business »

Sheepdog wrote:Well, the lack of grocery rebate didn't hurt me. I still receive annual $800+ rebates thru a seven year old grandfathered MC which pays 5% on all grocery store, drug store, gasoline, Walmart, Kmart purchases. Plus, those items are the only items which I charge with that card. I don't know why they have never cancelled it, but I ain't asking them. I won't even tell you the card name cause someone out there may be jealous.
Ko
I'm jealous even without you telling us the card name :cry:
porcupine
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Post by porcupine »

Chuck wrote:Stock up on groceries. :)
Or gift cards for your local grocery store.

- Porcupine
david99
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Post by david99 »

Fidelity offers an Amex card with 2% back on everything ---- so you can use your Amex card for groceries and Pen Fed Visa for gas. I'm not sure if you have to be a Fidelity customer to qualify but you can check their website.
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modal
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Post by modal »

Sheepdog wrote:Well, the lack of grocery rebate didn't hurt me. I still receive annual $800+ rebates thru a seven year old grandfathered MC which pays 5% on all grocery store, drug store, gasoline, Walmart, Kmart purchases. Plus, those items are the only items which I charge with that card. I don't know why they have never cancelled it, but I ain't asking them. I won't even tell you the card name cause someone out there may be jealous.
Ko
Once you tell me the name, I'm going to ask if they ever got my application.

:D Please tell.
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modal
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Post by modal »

I believe the Fort Knox card had an minimum activity level and a inactive fee. Maybe I need to look into it again.
nomad
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Post by nomad »

Penfed has also increased the balance transfer fee to 3%.

On the upside, they eliminated the annual fee on their amex card.
G-Force
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Post by G-Force »

I wonder if they are reducing rewards to help pay all the expenses associated with cleaning up the data breach they had last month.
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sperry8
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Post by sperry8 »

modal wrote:I believe the Fort Knox card had an minimum activity level and a inactive fee. Maybe I need to look into it again.
Yes $26 if you don't use it for a year. Online application process is horrible btw. I was just trying to apply. No info provided at all about answers to questions re the card.

And except for gasoline, this isn't even close to being one of the best credit cards any more. I'm probably going to switch (and just keep this one for gas). So sad.
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Sheepdog
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Post by Sheepdog »

modal wrote:
Sheepdog wrote:Well, the lack of grocery rebate didn't hurt me. I still receive annual $800+ rebates thru a seven year old grandfathered MC which pays 5% on all grocery store, drug store, gasoline, Walmart, Kmart purchases. Plus, those items are the only items which I charge with that card. I don't know why they have never cancelled it, but I ain't asking them. I won't even tell you the card name cause someone out there may be jealous.
Ko
Once you tell me the name, I'm going to ask if they ever got my application.

:D Please tell.
Well, I won't tell you the name, but I will give you another card which some here would like to investigate. I have had this a number of years, but seldom use it. I use it a couple of times a year just to keep it active, just in case I lose my 5% card. See this PNC Everyday Rewards Visa card https://www.pnc.com/webapp/unsec/Soluti ... redit+Card . The benefits include:
■Up to 4% on gasoline at the pump
(up to $250 in eligible monthly net purchases)
■3% on cinema and movie rentals
(up to $150 in eligible monthly net purchases)
■2% on groceries, restaurants and fast food
(up to $750 in eligible monthly net purchases)
■Up to 1% on almost everything else
(1/4% on first $10,000 in eligible net purchases each year, 1% thereafter with no limits)
■Automatic Redemption (earn $100 cash back and receive a check in your next statement)
If I were to start using this card on a regular basis after possibly losing my 5% card mentioned earlier, I would use this card for movies (3%), groceries (2%)and restaurants (2%); then I would use the PenFed card for gas (5%) and everything else (1%).
Jim
Unless you try to do something beyond what you have already mastered you will never grow. (Ralph Waldo Emerson)
Carl53
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Post by Carl53 »

While my PF statement did not show the change, I called and got a confirmation that the grocery reward is changing. I expressed my displeasure and indicated that I would be seeking other options. I hope that they are deluged with complaints. Just a few months ago they offered bonus rebates on select items like school supplies and home improvement purchases. They ran out several other card alternatives recently that offer points and charge fees so I suppose this has been in the works for some time.
Chuck
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Post by Chuck »

I don't think I will switch for the extra 0.25%.
Easy Rhino
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Post by Easy Rhino »

Chase Freedom is offering 5% off groceries this quarter.

Amex Hilton card offers pretty good points at grocery stores.

I have one of those "shall not be named" 5% cards as well. I like it. It has a paltry credit limit, but I'm afraid to even call and try to have it increased or reallocated, because I'm worried I'll lose the cashback bonus. :oops:
Chuck
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Post by Chuck »

Carl53 wrote:I expressed my displeasure and indicated that I would be seeking other options. I hope that they are deluged with complaints.
If they've grown tired of giving you money, your threat to walk away won't harm them much.

When you're riding in a friend's car, just offer to fill their tank for 10 cents off per gallon if they give you the cash. You'll more than make up the difference on the grocery thing.

I often go to lunch with 3 friends, I always pay with my Citi Forward (5% on restaurants) and have them give me the cash. That's an easy way to get 20% cash back.
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jpsfranks
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Post by jpsfranks »

Easy Rhino wrote:Chase Freedom is offering 5% off groceries this quarter.
I recently finally had my 5% groceries/gas Chase Rewards Plus card switched, somewhat surrepticiously, to a Chase Freedom with rotating categories. Without any notice the rewards points were listed on the statements as "Ultimate Rewards" points but still earned 5% on groceries and gas. Then after a few months of that last month they finally mailed me the Chase Freedom labeled card and an info packet. I'm guessing that groceries have been included in the Freedom bonus categories for the last two quarters to help transition people off other cards.

When I called to ask if there was any chance I could retain the old program I was told Freedom was "better" because the rotating categories had the potential to apply to other products as well. Of course, I don't care about other categories and would have preferred sticking to groceries and gas. Oh well, couldn't last forever. When the categories rotate next the card goes into the drawer.
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Cloud
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Post by Cloud »

This is rather bothersome since I've only been with PenFed 6 months and only joined to get this CC. So now in 6 months of my joining they have a security breach giving out my SS info, and now pull this stunt with the rewards. Blah...
kirent
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Post by kirent »

Chuck wrote:
stives wrote:There already is. The Fort Knox Visa Platinum gives 5% on gas and 1.25% on all other purchases. The kicker is you can supposedly pay the balance with another credit card
Can you pay the balance with your PenFed card and get 5.95% on gas and 2.2375% on everything else?
It will probably depend on how PenFed classifies the payment. If you browse through the FatWallet thread you can see what the posters say. With the Schwab/FIA card it appears you get 6.9% off gas and 3.225% off all other items, which very clearly trumps almost every other card combination out there.
Disclaimer: I am not a financial or legal expert and all information I provide is given for entertainment purposes only, at your own risk and with no guarantees of accuracy.
nomad
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Post by nomad »

Chuck wrote:
stives wrote:There already is. The Fort Knox Visa Platinum gives 5% on gas and 1.25% on all other purchases. The kicker is you can supposedly pay the balance with another credit card
Can you pay the balance with your PenFed card and get 5.95% on gas and 2.2375% on everything else?
That's a balance transfer, not another purchase.

I have yet to find a credit card that rebates balance transfers. If a card issuer were to rebate balance transfers, certainly the rebate would not exceed what they get in interest and balance transfer fees, because there is no merchant fee to offset.
kirent
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Post by kirent »

nomad wrote:
Chuck wrote:
stives wrote:There already is. The Fort Knox Visa Platinum gives 5% on gas and 1.25% on all other purchases. The kicker is you can supposedly pay the balance with another credit card
Can you pay the balance with your PenFed card and get 5.95% on gas and 2.2375% on everything else?
That's a balance transfer, not another purchase.

I have yet to find a credit card that rebates balance transfers. If a card issuer were to rebate balance transfers, certainly the rebate would not exceed what they get in interest and balance transfer fees, because there is no merchant fee to offset.
According to a poster on FatWallet, it works with the Schwab/FIA Visa and is NOT classified as a balance transfer.
Disclaimer: I am not a financial or legal expert and all information I provide is given for entertainment purposes only, at your own risk and with no guarantees of accuracy.
nomad
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Post by nomad »

stives wrote: According to a poster on FatWallet, it works with the Schwab/FIA Visa and is NOT classified as a balance transfer.
What is it classified as? If it's classified as a purchase, then the "seller" (in this case, the other bank) would have to pay the merchant fees (approx. 5%). Why would a crediter do that? And if it were classified as a cash advance, there are no merchant fees to pad the rebate.
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dratkinson
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Post by dratkinson »

It's my fault. PF was waiting for me to join before lowering their rewards.
Easy Rhino wrote:Chase Freedom is offering 5% off groceries this quarter.
Yea, Chase sucked me back in, too, with this offer. But remember, there is a $1500 limit per quarter to get the 5% reward. After that it drops back to 1%.

http://www.chasefreedomnow.com/1030054
5% Cash Back
You earn 1% on all purchases and 4% more in bonus categories for a total of 5%. 4% bonus earn is subject to a quarterly maximum. ...
$1500 quarterly limit on 4% extra: https://www.chase.com/online/freedom/creditcard.htm


My plan is to track my quarterly grocery/drugstore spending on the Chase card, and then in late March, buy a grocery store gift card to max-out the 4%-extra bonus.

After that, I'll go back to the PF card as I like the interest credited on each month's statement, instead of waiting to accumulate a cash-back rewards check.

I do like the fact that Chase sent out a CC-sized calendar of their annual quarterly bonus programs. Makes it easy to know when to use their CC as my default position is to NOT use the Chase CC.
kirent
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Post by kirent »

nomad wrote:
stives wrote: According to a poster on FatWallet, it works with the Schwab/FIA Visa and is NOT classified as a balance transfer.
What is it classified as? If it's classified as a purchase, then the "seller" (in this case, the other bank) would have to pay the merchant fees (approx. 5%). Why would a crediter do that? And if it were classified as a cash advance, there are no merchant fees to pad the rebate.
According to the poster, it went through just like any other purchase and he got the full cashback.
Disclaimer: I am not a financial or legal expert and all information I provide is given for entertainment purposes only, at your own risk and with no guarantees of accuracy.
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