FIA Fidelity Amex

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CarefulBuilder14
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FIA Fidelity Amex

Postby CarefulBuilder14 » Sun Jul 27, 2014 12:33 pm

I was thinking of getting this card but have read that in the last few months, cardholders have reported a lot more problems. Some people have the card declined for ordinary, regular transactions like buying $100 of groceries at their local store. They also report the customer service as generally mediocre.

2% cash back going into my Fidelity account automatically sounds great. My concern is that I can see myself using the card for only random off-category spending (when I can't beat 2% cash back with another card) and triggering the fraud alerts constantly.

How do people here currently feel about the card?
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Rory
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Postby Rory » Sun Jul 27, 2014 12:57 pm

I have had it for about a year now and have never been randomly declined or had any real issues whatsoever. I average about 400$ a year in cash back deposited into my Fidelity account and thats from just small spending outside of more lucrative categories that i receive higher % back with other cards. I would definitely look into it if you use Fidelity.

I cannot speak to their customer service as i have never really had a need to use it. The online payment portal is a bit outdated though, but it is due for an upgrade soon.
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MemberSince99
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Postby MemberSince99 » Sun Jul 27, 2014 1:52 pm

I had it as well and was never declined. Never had an issue with the customer service, but that doesn't mean no one else does. It's always a case of YMMV just my experiences.

benhollberg
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Postby benhollberg » Sun Jul 27, 2014 1:54 pm

With the cash back deposited directly to your account then is there any way that you would have to pay taxes on that cash back? I guess it would depend what kind of account you have it deposit to with Fidelty, do you have any experience with this?
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Darrvao777
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Postby Darrvao777 » Sun Jul 27, 2014 2:05 pm

CarefulBuilder14 wrote:I was thinking of getting this card but have read that in the last few months, cardholders have reported a lot more problems. Some people have the card declined for ordinary, regular transactions like buying $100 of groceries at their local store. They also report the customer service as generally mediocre.

2% cash back going into my Fidelity account automatically sounds great. My concern is that I can see myself using the card for only random off-category spending (when I can't beat 2% cash back with another card) and triggering the fraud alerts constantly.

How do people here currently feel about the card?


I have it as well and had multiple purchases rejected. To be fair, this was around the time I had moved to a new area and was making larger purchases and they were fairly quick about getting my account back on track

Customer support was decent but their online banking system is quite archaic compared to chase and regular amex

Just ended up getting an amex platinum and while I would be missing out on 1%, having thoughts about closing down my fidelity amex
- Fidelity Visa
- Citi Double Cash
- Amazon Prime Store Card

Darrvao777
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Postby Darrvao777 » Sun Jul 27, 2014 2:07 pm

benhollberg wrote:With the cash back deposited directly to your account then is there any way that you would have to pay taxes on that cash back? I guess it would depend what kind of account you have it deposit to with Fidelty, do you have any experience with this?


Interesting question. I've had it for less than a year so it will be interesting come tax season whether or not I have to report it as income

I have my fidelity set up as a plain old money market account. Once I have enough points (5000) to redeem, I make the conversion and then transfer those $50 electronically to my regular banking checking account (I don't use fidelity services for investment purposes yet)
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CarefulBuilder14
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Postby CarefulBuilder14 » Sun Jul 27, 2014 3:31 pm

I have done a little research and here is what I have found:

If you get rewards over $600 per year just because you open an account, and are not required to make at least one purchase with that card within a limited period of time, then the rewards are taxable.

If you need to make a purchase to earn a 'signing bonus' or to receive a regular percentage of cash back, then the rewards are not taxable. They can, however, count as a reduction in cost of whatever you buy with the card. So, if you use the card to buy something for $100 you will claim as an expense on your tax return, and you get $1 worth of rewards, then you can only claim a deduction for $99.

There are a few Private Letter Rulings (things the IRS publishes that offer some guidance but are far, far less authoritative than the Internal Revenue Code) that state that if cash-equivalent points are given to a charitable organization, then the cardholder can take a charitable deduction.

Disclaimer: I am an Enrolled Agent (a federally authorized tax practitioner and taxpayer advocate) and have a reasonable knowledge of taxation. I should emphasize that I have been unable to find anything that provides a definite or comprehensive answer. I like to help but do not rely on this bit of light research if the IRS tells you your rewards are taxable.
Warranties and sketchy merchants: Schwab Platinum
Price rewind: Costco
Travel insurance: Prestige, CSP
Perks: IHG, Hyatt
Rewards/Offers: Discover, Freedom, ED, BCE
Taxes/Misc: SPG

Limited value, might close: Arrival

Might add: First Tech, proper business card

MemberSince99
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Postby MemberSince99 » Sun Jul 27, 2014 4:13 pm

From what I've read if you are talking strictly rewards and not sign up bonuses, the rewards are considered a rebate and are NOT taxable, but if the sign up bonus goes over 600 I believe that would be taxable (and you'd get a 1099 on it).


That's what I read. I don't believe rewards are taxable, but since it's going into a 401k account, I assume that when you withdraw that money, then that would be taxable. So that's a different thing than usual and hence would lower that 2% return a bit if true.

benhollberg
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Postby benhollberg » Sun Jul 27, 2014 9:30 pm

I guess it would also take into account of what kind of account you deposit the cash back into. Whether it is a regular Fidelty savings, Roth or IRA. I don't know much about the card, if you even get to choose where to deposit the money.

Another thing on taxable rewards, I thought that if you received over $600 cash back per year then you receive a 1099, I didn't know that that only applied to signup bonuses or bonuses. Good to know.
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Darrvao777
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Postby Darrvao777 » Sun Jul 27, 2014 10:22 pm

benhollberg wrote:I guess it would also take into account of what kind of account you deposit the cash back into. Whether it is a regular Fidelty savings, Roth or IRA. I don't know much about the card, if you even get to choose where to deposit the money.

Another thing on taxable rewards, I thought that if you received over $600 cash back per year then you receive a 1099, I didn't know that that only applied to signup bonuses or bonuses. Good to know.


You can choose. When you set up the Fidelity account, you can choose what type or select already existing accounts

For me, I don't bank through Fidelity so I set up a plain money market account and just transfer the money out after conversion from points

Aside from the one time security check (and again, to be fair, I did move which could be suspicious behavior) and the outdated website, it's a decent card

I think I just prefer the perks of the Amex Platinum card (and no preset spending limit)
- Fidelity Visa
- Citi Double Cash
- Amazon Prime Store Card



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