- Centurion Member
- Posts: 875
- Joined: Thu Apr 30, 2009 2:32 pm
- Location: Texas
Gamma, I don't have the PenFed card because my gasoline spending is minimal. However, I have wondered about the broader question you pose: Will CC companies do anything about customers who only use their cards for the maximum reward categories (in my case, for instance, groceries and gas on Amex BCP and nothing else)?
For a while now I've been using my category reward cards in such a way and I've never been contacted by any of the issuers. I have to think that my business is at best a break-even proposition for them. However, interchange fees vary widely, so I don't really know.
Citi seems to address this issue with their Universal Rewards Card, which offers a rebate on AT&T purchases. In order to get the rebate, you must charge an amount equivalent to your monthly AT&T spend in other categories. It's been a while since I had this card, so that might have changed.
It seems like it would be easy enough for card issuers to "fire" rewards-greedy customers like myself. However, there are probably far more people out there who aren't as OCD about this stuff as myself and others on this forum are, so the card issuers are making money in the end, lots of it.
Finally, dropping customers for taking full advantage of the enticement you gave them to use your product in the first place would be an extremely poor PR move. Can you imagine the comments you'd see on this forum if that were happening?
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.