Which "warehouse stores" won't earn credit card rewards?

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martinbailey
 
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Which "warehouse stores" won't earn credit card rewards?

Postby martinbailey » Sat Feb 26, 2011 3:38 pm

I keep seeing credit card applications list "warehouse stores" as an exclusion for higher rewards. What is the definition of a warehouse store? Sams Club and Costco I would assume but are there others?


redeye
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Postby redeye » Fri Mar 04, 2011 4:54 pm

Why are warehouse stores excluded for higher rewards? Are you telling me that all credit cards give a reduced amount?

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Mogul of Pineapples
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Postby Mogul of Pineapples » Fri Mar 04, 2011 10:35 pm

I can't speak for all credit cards in general but I see the reduced rewards with the American Express and Discover cards. My assumption is that it has something to do with the partnerships each has with Costco and Sam's Club. No one would get the warehouse club credit cards if their cash back was the same as any other credit card.
Disclosure: I am a moderator/paid staff of this site, which does have advertising relationships with some credit cards that are discussed and linked to. Regardless, anything I say is my honest opinion.

Current Cards:
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redeye
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Postby redeye » Sat Mar 05, 2011 3:58 am

When you say 'reduced rewards' what does that mean. How much are the rewards reduced compared to normal spending.

DarrellEW
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Postby DarrellEW » Sun Mar 06, 2011 12:49 pm

From the Discover More card terms:
Automatically earn 1% unlimited Cashback Bonus on purchases after your total annual purchases exceed $3000; purchases that are part of your first $3000 earn .25%. Warehouse purchases (those made at select warehouse clubs, discount stores and their affiliates) earn .25%


This is the only card I've seen with a restriction like this.

jeffysdad
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Postby jeffysdad » Sun Mar 06, 2011 3:53 pm

Do you think the Discover restriction on warehouse club rewards is because people tend to buy in bulk and make large individual transactions at WCs (warehouse clubs not water closets)? A lot of restaurants and other small businesses shop at WCs; maybe Discover doesn't want to reward these large bulk business transactions?
American Express: Blue Cash Preferred (groceries, 6%; gas, department store, 3%); Gold Delta SkyMiles (Delta Air Lines, 2 miles/dollar, free checked bag).
US Bank: Cash+ (utilities, phone, internet, restaurant, 5%; drugstores, 2%).
FIA Card Services: Fidelity Amex (everything, 2%); Fidelity Visa (everything, 1.5%).
Chase: Freedom (rotating, 5%); Amazon (Amazon.com, 3%); PriorityClub (IHG hotels, 5 points/dollar); Sapphire (not in use).

*All cards are registered with PriorityClub IDine program for 8 points/dollar at participating restaurants.

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Pete838
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Postby Pete838 » Tue Mar 15, 2011 10:43 pm

It has got to be about Sam's Club. They do not even accept AMEX or Visa, so I assume those cards didn't cave when they tried to negotiate card acceptance fees. MC and DISC probably gave up a percentage point or so on fees.

My average transaction at Sam's is around $2-300, so not absurdly high. No higher than Wal-mart, Home Depot, or Target.

The first card to come out is always my AMEX, and about 33% of the time the merchant won't accept it, or they'll run it and it won't process because they don't accept AMEX. Next is a Visa, and that doesn't even work at Sam's. My third tier card is a BOA M/C, and that always gets me out the door.
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Mogul of Pineapples
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Postby Mogul of Pineapples » Sun Mar 20, 2011 5:38 pm

jeffysdad wrote:Do you think the Discover restriction on warehouse club rewards is because people tend to buy in bulk and make large individual transactions at WCs (warehouse clubs not water closets)?


I think (guess) it has more to do with the Amex and Discover partnerships with Costco and Sam's Club. Customers would be far less inclined to apply for the Costco card if their plum card could be used to earn 1.5% or the Discover Escape's 2% at Sam's Club. That, along with what Pete said about lower negotiated processing fees at warehouse stores, are probably the reasons why they blow for rewards.
Disclosure: I am a moderator/paid staff of this site, which does have advertising relationships with some credit cards that are discussed and linked to. Regardless, anything I say is my honest opinion.

Current Cards:
American Express: Blue Cash, Simply Cash Bank of America: WorldPoints Platinum Plus Chase: Amazon, British Airways, Cash Plus Rewards, Freedom, Ink Cash Citi: Thank You Premier, Dividend Platinum Select Discover: More
Primary Everyday Card: American Express Blue Cash
Primary Travel Card: Chase Sapphire Preferred

comowhat54
 
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Postby comowhat54 » Mon Apr 18, 2011 8:50 am

I have the same question that @martinbailey first wrote, and I understand where he's coming from (not sure if the other's do). I just got the Amex Blue Cash card and it's not explicitly clear [I]which stores[I] will give us a higher level of cashback vs others (supermarkets and grocery stores give a higher level cash back...but supercenters don't).

What the heck is the difference between a grocery store and a super market? And what is a supercenter? Guess I missed the memo on that one, and it's not outlined anymore in the fine print that was mailed out w/ the card. I know it's all in how it's coded on each charge, but a list of common stores that are/are not avail for higher rewards (on Amex Blue Cash) would be nice.

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Mogul of Pineapples
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Postby Mogul of Pineapples » Mon May 02, 2011 3:00 pm

comowhat54 wrote:list of common stores that are/are not avail for higher rewards (on Amex Blue Cash) would be nice.


I completely agree and its unfortunate American Express nor others do this.

As far as the differences between the two stores, the definitions seem to change between merchants. A couple years ago there was a fuss over AmEx not counting Whole Foods as a grocery store and it took a lot of fighting for them to change it. Being that Whole Foods is a grocer (not a superstore like Walmart) I don't know how AmEx could classify them as anything but a grocery store!
Disclosure: I am a moderator/paid staff of this site, which does have advertising relationships with some credit cards that are discussed and linked to. Regardless, anything I say is my honest opinion.

Current Cards:
American Express: Blue Cash, Simply Cash Bank of America: WorldPoints Platinum Plus Chase: Amazon, British Airways, Cash Plus Rewards, Freedom, Ink Cash Citi: Thank You Premier, Dividend Platinum Select Discover: More
Primary Everyday Card: American Express Blue Cash
Primary Travel Card: Chase Sapphire Preferred



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