Significant change in Penfed cashback visa card
Significant change in Penfed cashback visa card
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.
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.
- White Coat Investor
- Posts: 17338
- Joined: Fri Mar 02, 2007 8:11 pm
- Location: Greatest Snow On Earth
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.EmergDoc wrote:Too bad. But what can you do? When there is a better one out there, I'll switch.
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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- Posts: 461
- Joined: Sat Sep 11, 2010 9:01 am
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
Ko
Unless you try to do something beyond what you have already mastered you will never grow. (Ralph Waldo Emerson)
- monkey_business
- Posts: 785
- Joined: Thu Jan 21, 2010 1:21 pm
I'm jealous even without you telling us the card nameSheepdog 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.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
Please tell.
Penfed has also increased the balance transfer fee to 3%.
On the upside, they eliminated the annual fee on their amex card.
On the upside, they eliminated the annual fee on their amex card.
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.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.
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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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:modal wrote:Once you tell me the name, I'm going to ask if they ever got my application.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
Please tell.
■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)
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.
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- Posts: 3278
- Joined: Sun Aug 05, 2007 11:13 am
- Location: San Diego
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.
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.
If they've grown tired of giving you money, your threat to walk away won't harm them much.Carl53 wrote:I expressed my displeasure and indicated that I would be seeking other options. I hope that they are deluged with complaints.
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.
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.Easy Rhino wrote:Chase Freedom is offering 5% off groceries this quarter.
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.
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.Chuck wrote:Can you pay the balance with your PenFed card and get 5.95% on gas and 2.2375% on everything else?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
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.
That's a balance transfer, not another purchase.Chuck wrote:Can you pay the balance with your PenFed card and get 5.95% on gas and 2.2375% on everything else?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
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.nomad wrote:That's a balance transfer, not another purchase.Chuck wrote:Can you pay the balance with your PenFed card and get 5.95% on gas and 2.2375% on everything else?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
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.
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.
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.stives wrote: According to a poster on FatWallet, it works with the Schwab/FIA Visa and is NOT classified as a balance transfer.
- dratkinson
- Posts: 6108
- Joined: Thu Jul 26, 2007 6:23 pm
- Location: Centennial CO
It's my fault. PF was waiting for me to join before lowering their rewards.
http://www.chasefreedomnow.com/1030054
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.
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%.Easy Rhino wrote:Chase Freedom is offering 5% off groceries this quarter.
http://www.chasefreedomnow.com/1030054
$1500 quarterly limit on 4% extra: https://www.chase.com/online/freedom/creditcard.htm5% 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. ...
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.
According to the poster, it went through just like any other purchase and he got the full cashback.nomad wrote: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.stives wrote: 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.