credit cards

Did Southwest let Chase declare their points are worth less than 1 cent each?

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My wife has the Southwest Priority Card until the annual fee goes up next year. She just got a spend promo from Chase. These are pretty typical and usually provide 5x points for spend in certain categories. We always sign up for them, but usually can’t max them out unless it’s something good like Amazon spending. I guess you could say I am pretty well-versed on these and the fine print.

We currently have several cards with gas, grocery, and restaurant deals from 3x to 5x, but this new Southwest one caught my eye.

As you can see, it is 4% up to $40 through September. I thought, well, that is pretty good and easy to max out, even if we buy most of our groceries at Walmart, which doesn’t count. But then I read the fine print.

OK, still 4% back up to $40, so doing my public school math, that is $1,000 to get $40, I’m in, or at least I’ll register. But then it dawned on me…why? Why cashback, why not points or miles? Now I know Freedom does this as cash back, but it really ends up being points.

Maybe I’m dumb, but since we prefer airline credit cards, wouldn’t you think Chase would assume we want miles or points instead of cash? If I just wanted a cash rewards card, I’d just do that. I’m sure I’m reading too much into all this, but it will be interesting to see how we earn this bonus. Of course, it takes 6 to 8 weeks because, well, it’s 2025.

My conclusion on this is if they want to pay us 4% cash back instead of the typical 5x points, does that mean Southwest points are worth less than 1 cent each? My reasoning is that if this were 5x points, I’d earn 5,000 points, not $40 for the same $1,000 spend on this card.

If my math is correct, 5,000 points at $40 is about .008 per point.

Next time, Chase, just give me points, it’s a game, not real life, to me in this space. I’m trying to earn a vacation here, not $40.

I’d even add that if I had $40 in Southwest points, which we now know is 5,000 points, I’d be spending them only on Southwest, so the cost for them to provide that 5,000 worth of service would likely be worth less and give them more profit. I suppose Chase doesn’t see it that way.

Are the Changes to Citi AAdvantage Business World Elite Mastercard a game changer?

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I have a couple of small businesses and like all good churners I have a few business credit cards for those purposes. This includes the Citibank American Airlines Work Elite Mastercard. It’s always been an OK card with decent earn rates towards American Airlines AAdvantage miles and the sign-up bonus was good. It’s good for small businesses where you can add and manage additional cardholders. To me, it was about like their other personal platinum-flavored cards. It usually offers a SUB of around 70,000’ish miles and a low annual fee. Earns 2x on some things like telecommunications and 2x on gas as long as you only want 1x loyalty points for that with the other 1x being “bonus” miles only. Yawn.

This card is not to be confused with the Barclay Aviator Business card but yet it’s about the same.

So why are we talking about this card now and how could it be a game changer for a few select people chasing status or benefits?

They are changing this card and how it’s going to reward you.

Citibank just released changes to this card as follows:

Enjoy your new, exclusive AAdvantage Business™ membership benefits as a Citi® / AAdvantage Business™ cardmember, now available to you and your Authorized Users.

 
 What’s new 
 
 • We’ve updated our name to Citi®/ AAdvantage Business™ World Elite Mastercard® to better reflect the new value of your added benefits with the AAdvantage Business™ program. You will not be immediately reissued a new card with this change. 
 
 • With your AAdvantage Business™ membership, miles your company earns from eligible purchases made with the Citi® / AAdvantage Business™ card will now accrue to your AAdvantage Business™ account. They can be distributed to any registered employee at no cost, for use on flights, upgrades, car rentals and more. 
 
 • Each registered cardmember, the Primary and any Authorized Users, earns Loyalty Points toward status from eligible purchases made with the Citi® / AAdvantage Business™ card in their name. 
 
 
 • As a Citi® / AAdvantage Business™ cardmember, your company enjoys waived program requirements. Your miles are always available for you to use, no need to meet the $5,000 spend and 5 traveler minimums. 
 
 Same great benefits 
 
 • Continue to earn 2X miles on eligible American Airlines purchases, 2X miles at telecommunications merchants and cable and satellite providers, and 2X miles on car rental merchants and at gas stations 
 
 • Earn 1 mile for every $1 spent on all other eligible purchases made with your Citi® / AAdvantage Business™ card. 
 
 • As the Primary Cardmember, you’ll continue to enjoy your first checked bag free on domestic American Airlines itineraries, plus preferred boarding on American Airlines flights. 
 
 If you haven’t already, invite your Authorized Users and employees to register with your AAdvantage Business™ account and start earning miles for your business right away. Authorized Users must register to participate in the AAdvantage Business™ program, or their card account may be closed. Visit the travel management portal to get started.

So what? Well, look at the fine print. “In Theory” it seems that your employees (or other additional cardholders in 2-player mode) will earn 1x loyalty points on purchases but as the “business owner,” you will also earn 1x loyalty points on those purchases. While higher-level cards may earn high-level spending bonuses this is pretty sweet but not unusual.

But…Imagine if you will, you have a small business and you have your wife, your college student child, and your deadbeat cousin, and some actual, good employees all spending on this card. It “seems” like “In Theory” that all that cash flow going through those employee cards you would earn extra loyalty points plus business points for what they are doing daily like buying gas. Imagine you have a thriving small business where you have 10 or 20 employees doing this. Citi includes a graphic on this as well to prove my point.

Here it is again from their FAQ:

“Miles earned from the Primary Cardmember and Authorized Users post to the company’s AAdvantage Business™ account. Each card member (Primary and employee) earns Loyalty Points on their card purchases. Loyalty Points earned by the Primary Cardmember post to the Primary’s AAdvantage® account. Loyalty Points earned by the employee post to the employee’s AAdvantage® account.”

Now, maybe it’s not the big of a deal as a standard additional cardholder on your personal account would also contribute to your loyalty points but this allows you to have many employees contribute from the way I read this.

If you are looking to sign up and get the best sign-up bonus for such a card I’d suggest checking out the Frequent Miler blog’s “Best Offers” page as a good place to start your research.

$100 Statement Credit off $550 for Chase Sapphire Reserve, targeted?

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I just got a secure message through my Chase account regarding the upcoming $550 annual fee on my CSR. “We recognize this is a difficult time for everyone. As a way to help, we’re providing you a one-time $100 statement credit toward the 2020 $550 annual fee on your Reserve credit card. On an upcoming billing statement (based on your renewal date), you’ll see a $550 charge for the annual fee, followed by a $100 statement credit. We will continue to bill the $550 annual fee in 2021. Because this credit only applies to open Reserve accounts, if you’ve closed your Reserve account or traded to another credit card before your renewal, you will not receive the $100 statement credit. We know COVID-19 has affected people in many different ways. Please check chase.com/StayConnected for updates and helpful ways to stay connected to your accounts.

I wasn’t super worried about the increased fee as I still get value out of the travel credits, insurance and increase in Ultimate Rewards points redemption but had considered closing my account. This is enough to keep me a customer for another year. I don’t find much value in the new Doordash or Lyft credits as I will only use those when I travel but neither service is available in my rural town, yet.

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My attempt to get the other 10k SPG points from AMEX

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I recently got the SPG Amex card with the 25,000 bonus points. They are now offering 35,000 SPG points. I used the Amex live chat feature to see if they would pony up the other 10,000 points or would call my bluff on canceling my card. Here is what happened

amex chat 1

Amex chat 2

amex chat 3

Amex chat 5Amex chat 4

Oh well. I’ve never had good luck with American Express. I guess I need to keep my business with Citi, Chase and BofA who treat me way better.