Barclaycard Arrival rewards rate is actually > 2.2%

Discuss the Visa & MasterCard payment networks as well as cards that operate through them.
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MemberSince 79
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Postby MemberSince 79 » Sat Feb 15, 2014 7:15 pm

I ran into this type of math all the time in the world or tax and finance. If your data and computations are right, you make a good point. Especially if other cards give to points on the redemption.
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Postby freyj6 » Sat Feb 15, 2014 9:12 pm

I don't follow.


Basically most cards, once you accumulate enough points, let you pay for your flight/hotel/etc with the points, but since the Arrival does it through statement credit, you earn rewards on your travel purchase too -- even though you don't have to pay for it.

It's still relatively irrelevant, but it nets an extra few dollars.
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samhradh
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Postby samhradh » Sat Feb 15, 2014 10:18 pm

freyj6 wrote:$45000 in spending gets you $1000 in rewards (2.222 x 45000). But you also earn 2.2% on the travel you book even though you spend no money on it. So the $45000 in spending will actually get you ~$1022.


$50,000 in spending = 100,000 miles.
Redeem 100,000 miles for $1,000 in travel spend = 0 miles.
You now have 10,000 miles remaining.

For every dollar spent, you get double it in miles, plus a 10% dividend on the miles you spent if you redeemed for travel. 1 mile = .01 cents. That's how it works. That's why I don't follow you.
Citi Forward ($10.1K), AmEx Blue Cash Everyday ($30K), Chase Freedom ($12.4K), Discover it ($5.5K), Barclaycard Arrival ($12.5K), L.L. Bean Visa ($5K). FICO 806 (TU), 812 (EQ), 806 (EX).

freyj6
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Postby freyj6 » Sun Feb 16, 2014 1:07 am

As I understand it, you purchase the $1000 travel (on which you earn rewards -- $22) and then you redeem your miles against that travel purchase, therefore paying $0.

So $50,000 spent for 100,000 points, buy/redeem $1000 in travel for an additional 2000 points = 12000 leftover with $50,000 spent. And repeat.
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samhradh
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Postby samhradh » Thu Feb 20, 2014 7:21 pm

A lot of bloggers have been posting on it this week. My favorite post (and the one that sums up my thoughts) is from the blogsite Frequent Miler
Citi Forward ($10.1K), AmEx Blue Cash Everyday ($30K), Chase Freedom ($12.4K), Discover it ($5.5K), Barclaycard Arrival ($12.5K), L.L. Bean Visa ($5K). FICO 806 (TU), 812 (EQ), 806 (EX).

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Postby MB131174 » Thu Feb 20, 2014 8:20 pm

I really wish they'd stop saying you earn "miles" since this card doesn't pay out rewards like a co-branded airline credit card does.
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Postby luvbullmarkets » Thu Feb 20, 2014 8:45 pm

The same could be said for Capital One Venture Card. It earns "miles" as well.
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Postby MB131174 » Sun Feb 23, 2014 12:54 pm

luvbullmarkets wrote:The same could be said for Capital One Venture Card. It earns "miles" as well.


I knew there was another one that did that and it irked me. They should call it what it is - travel cash back. I wonder how many poor saps think they're actually earning miles, because we all know 25,000 miles (usually enough for a round trip domestic ticket worth more than $250) > 25,000 points (which usually means $250 if doing cash back). It's a wonder a lawyer hasn't brought a deceptive marketing lawsuit against those two banks.
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Postby linuxmachine » Fri Feb 28, 2014 5:58 pm

samhradh wrote:$50,000 in spending = 100,000 miles.
Redeem 100,000 miles for $1,000 in travel spend = 0 miles.
You now have 10,000 miles remaining.

For every dollar spent, you get double it in miles, plus a 10% dividend on the miles you spent if you redeemed for travel. 1 mile = .01 cents. That's how it works. That's why I don't follow you.


I actually got 2.22%
This is how I figured...
100K spend = $2k, and when redeemed, you get $200. Effectively a 10% discount.
In that context, assume that your $2k is a 90% purchase towards some travel expense.
Some basic algebra will show 0.9x = $2000, where x=travel expense.
this calculates to x=$2222.2222~
Now, apply that to your 100K spend, and you are at 0.022222222~%
The problem i find with some of these funky calculations is that some people like to apply future 10% redemptions into the first one, and that causes calculations to be higher than they really are.

That said, for practical purposes, you are only really getting 2% back, and an added .02% discount in your subsequent purchases that you've received from previous. So you're effectively using 2.2%. Once you start reaching 0.02%, it becomes very minor. We're talking 20 dollars and change for a 100k spend.

So what are we fussing over again? :)


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Postby samhradh » Tue Apr 29, 2014 9:33 pm

I thought it was a joke when I saw this tonight. Then I clicked over to the redemption section ASAP and got myself a free windshield. Thanks, random Barclaycard travel categories! You may not like to count travel as travel but you'll count repairs so you're back on my good side.

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Citi Forward ($10.1K), AmEx Blue Cash Everyday ($30K), Chase Freedom ($12.4K), Discover it ($5.5K), Barclaycard Arrival ($12.5K), L.L. Bean Visa ($5K). FICO 806 (TU), 812 (EQ), 806 (EX).



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