5 ms·

I pay all my bills/groceries/expenses with a credit card, and get points. I use to use my debit card. Might as well get something out of a process I'm already d

I pay all my bills/groceries/expenses with a credit card, and get points. I use to use my debit card. Might as well get something out of a process I'm already doing.

desdiv 9y ago
Then get a cash-back card back where you get legal tender USD back, instead of some psudo-currency that arbitrarily expires, has a shitty exchange rate, and can only be spent at limited locations.
- daurnimator 9y ago
  I've never seen a "cash-back" card outside the USA. Here in Australia, a 2 points per $ is the best value I can seem to find. Edit: I just did some quick searching, and cash-back cards do exist here, they are just horrible value.
  - santaclaus 9y ago
    Hell, even in the states, I haven't seen a cash-back card with a reasonable rate (~5%) in years. Most cash-back cards I see are slightly less than 2% back, while with 'rewards' cards (e.g. Amazon) you can easily find 5%. If anyone can point me towards a nice cash-back card I'm def game, though!
    - posguy 9y ago
      You know that those cashback and airline miles rewards are all paid out of interchange (which is part of what the merchant pays), right? The Dodd-Frank Reforms, specifically the Durbin Amendment limited interchange on Debit transactions, killing debit rewards cards. Meanwhile, Visa's interchange rates keep getting beaten down, they're passing through 1.8% to whoever your bank is on average across all cards, with the higher end rewards cards being of limited issuance. If they issued everyone a Visa Signature Preferred card (at 2.10% interchange) like the Chase Sapphire Prefered, Visa would get sued by Walmart, Kroger and the like. Interchange keeps falling due to regulation and lawsuits, up in Canada Walmart even stopped accepting Visa. Interchange Rates for Visa: https://usa.visa.com/dam/VCOM/download/merchants/visa-usa-interchange-reimbursement-fees-2016-april.pdf https://usa.visa.com/dam/VCOM/download/merchants/visa-usa-in...
    - nugget 9y ago
      Bank of America Travel Rewards is about 2.6% back in points that can be used to offset future travel expenses (airline and hotel). You have to qualify for BOA's highest tier of service, but this can be done by keeping $100k in a brokerage account. It's not pure cash back but pretty close, and importantly, the points never devalue or expire.
    - CalRobert 9y ago
      The cash back is never going to be greater than the transaction fees, currently borne by the merchant. It has to come from somewhere after all. Sadly, the current situation is: * People want to pay with cards. * Merchant doesn't want to lose 3% on every sale, but they want customers, so they take cards and have to raise prices * Everyone (even cash customers) pays 3% more for all of their stuff. Some people with good credit get about half of it back as "cash back". It might be better if we just used cash... It's definitely ridiculous to ban different prices for card vs cash (google US credit card surcharge law).
      - gommm 9y ago
        The money doesn't only come from the transaction fee, it also comes from all the people who sign up for a credit card thinking they'll get points, fail to pay in time and pay enormous fees because of that.
      - deleted 9y ago
        [deleted]
      - spydum 9y ago
        I think you neglect the power of the consumer that credit cards yield: I can dispute charges when retailer/service provider fails to deliver.. It definitely balances the power out. Can't do that with cash.
        krupan 9y ago
        You can dispute directly with Amazon and other retailers with a reputation to uphold, no need to involve a third party.
        CalRobert 9y ago
        True, but I'm not sure a 3% tax on every transaction everywhere (bar a few big ticket things like real estate and cars) is worth it.
      - baursak 9y ago
        I've seen gas stations in the US now advertising lower cash price along with "normal" credit card price.
  - true_religion 9y ago
    I don't really see the difference between direct cashback, and accumulating points and cashing out every year at 2 points to a $. Rewards cost less for the company to deliver to you, so they "give" you more of them by advertising their cost as the public listing price, and not the price they actually paid for it. Cashing out, if fair, essentially gives you the money they set aside to buy select rewards with.
    - daurnimator 9y ago
      > I don't really see the difference between direct cashback, and accumulating points and cashing out every year at 2 points to a $. I don't think that's an option I have. My credit card's points can be redeemed for points with an airline of my choice (I've heard Krisflyer points are the best value?), or used at a special overpriced online store.
  - megablast 9y ago
    ING had one in Australia, 2% cashback on all purchases. They stopped it a few months ago.
  - hrrsn 9y ago
    ANZ offer a cash back Visa of up to 1% here in NZ, but at that rate I'll stick to my airpoints.
- p49k 9y ago
  That's not the best choice for everyone. I easily get more value from the miles by using them for flights than I would with cash back.
- Spooky23 9y ago
  It's often not the best value. I often get a ~$150 hotel room from points dervied from $5000 in recurring spending.
  - brianwawok 9y ago
    Is get 2% cash back. I bet for $100 I could Priceline a match for your $150 hotel.
    - Spooky23 9y ago
      Probably. But I'm picky about hotels and prefer certainty.

I pay all my bills/groceries/expenses with a credit card, and get points. I use to use my debit card. Might as well get something out of a process I'm already doing.

desdiv 9y ago

Then get a cash-back card back where you get legal tender USD back, instead of some psudo-currency that arbitrarily expires, has a shitty exchange rate, and can only be spent at limited locations.

daurnimator 9y ago
I've never seen a "cash-back" card outside the USA. Here in Australia, a 2 points per $ is the best value I can seem to find. Edit: I just did some quick searching, and cash-back cards do exist here, they are just horrible value.
- santaclaus 9y ago
  Hell, even in the states, I haven't seen a cash-back card with a reasonable rate (~5%) in years. Most cash-back cards I see are slightly less than 2% back, while with 'rewards' cards (e.g. Amazon) you can easily find 5%. If anyone can point me towards a nice cash-back card I'm def game, though!
  - posguy 9y ago
    You know that those cashback and airline miles rewards are all paid out of interchange (which is part of what the merchant pays), right? The Dodd-Frank Reforms, specifically the Durbin Amendment limited interchange on Debit transactions, killing debit rewards cards. Meanwhile, Visa's interchange rates keep getting beaten down, they're passing through 1.8% to whoever your bank is on average across all cards, with the higher end rewards cards being of limited issuance. If they issued everyone a Visa Signature Preferred card (at 2.10% interchange) like the Chase Sapphire Prefered, Visa would get sued by Walmart, Kroger and the like. Interchange keeps falling due to regulation and lawsuits, up in Canada Walmart even stopped accepting Visa. Interchange Rates for Visa: https://usa.visa.com/dam/VCOM/download/merchants/visa-usa-interchange-reimbursement-fees-2016-april.pdf https://usa.visa.com/dam/VCOM/download/merchants/visa-usa-in...
  - nugget 9y ago
    Bank of America Travel Rewards is about 2.6% back in points that can be used to offset future travel expenses (airline and hotel). You have to qualify for BOA's highest tier of service, but this can be done by keeping $100k in a brokerage account. It's not pure cash back but pretty close, and importantly, the points never devalue or expire.
  - CalRobert 9y ago
    The cash back is never going to be greater than the transaction fees, currently borne by the merchant. It has to come from somewhere after all. Sadly, the current situation is: * People want to pay with cards. * Merchant doesn't want to lose 3% on every sale, but they want customers, so they take cards and have to raise prices * Everyone (even cash customers) pays 3% more for all of their stuff. Some people with good credit get about half of it back as "cash back". It might be better if we just used cash... It's definitely ridiculous to ban different prices for card vs cash (google US credit card surcharge law).
    - gommm 9y ago
      The money doesn't only come from the transaction fee, it also comes from all the people who sign up for a credit card thinking they'll get points, fail to pay in time and pay enormous fees because of that.
    - deleted 9y ago
      [deleted]
    - spydum 9y ago
      I think you neglect the power of the consumer that credit cards yield: I can dispute charges when retailer/service provider fails to deliver.. It definitely balances the power out. Can't do that with cash.
      - krupan 9y ago
        You can dispute directly with Amazon and other retailers with a reputation to uphold, no need to involve a third party.
      - CalRobert 9y ago
        True, but I'm not sure a 3% tax on every transaction everywhere (bar a few big ticket things like real estate and cars) is worth it.
    - baursak 9y ago
      I've seen gas stations in the US now advertising lower cash price along with "normal" credit card price.
- true_religion 9y ago
  I don't really see the difference between direct cashback, and accumulating points and cashing out every year at 2 points to a $. Rewards cost less for the company to deliver to you, so they "give" you more of them by advertising their cost as the public listing price, and not the price they actually paid for it. Cashing out, if fair, essentially gives you the money they set aside to buy select rewards with.
  - daurnimator 9y ago
    > I don't really see the difference between direct cashback, and accumulating points and cashing out every year at 2 points to a $. I don't think that's an option I have. My credit card's points can be redeemed for points with an airline of my choice (I've heard Krisflyer points are the best value?), or used at a special overpriced online store.
- megablast 9y ago
  ING had one in Australia, 2% cashback on all purchases. They stopped it a few months ago.
- hrrsn 9y ago
  ANZ offer a cash back Visa of up to 1% here in NZ, but at that rate I'll stick to my airpoints.
p49k 9y ago
That's not the best choice for everyone. I easily get more value from the miles by using them for flights than I would with cash back.
Spooky23 9y ago
It's often not the best value. I often get a ~$150 hotel room from points dervied from $5000 in recurring spending.
- brianwawok 9y ago
  Is get 2% cash back. I bet for $100 I could Priceline a match for your $150 hotel.
  - Spooky23 9y ago
    Probably. But I'm picky about hotels and prefer certainty.