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beethovengirl said: ellory said: I understand people are concerned. I fail to see the need for baseless speculation. Nothing you can do. No contingency plans you can implement.
I don't know about you, but I'm considering applying for Fidelity/FIA's 2% Cash Back AMEX as a back-up. Not as good as Schwab Visa but the best publicly available alternative.

Anyone else also considering this course of action?


I'm also thinking about applying to for the Fidelity 2% AMEX, but it's definitely not as good as our beloved Schwab 2% Visa...

poncedelabank said: It seems Schwab was losing money on the card.

From Reuters:

"Third-quarter earnings will include about $130 million in pretax charges for covering losses recognized by Schwab money market mutual funds that had invested in a structured investment vehicle that defaulted in 2008. Schwab also posted $20 million of charges from two credit card programs to be discontinued amid "challenging card industry economics."

http://www.reuters.com/article/idCNN1514786920100915?rpc=44


$20 million is *a billion dollars* worth of credit card rewards. Just how much were FW users spending?!

A part of that 20 million was probably due to currency exchange fees as well, not just dollar coin purchases.

Ugh. This is bad news.

Should I go for the Fidelity 1.5% Visa or 2% AMEX?

mherdegg said: poncedelabank said: It seems Schwab was losing money on the card.

From Reuters:

"Third-quarter earnings will include about $130 million in pretax charges for covering losses recognized by Schwab money market mutual funds that had invested in a structured investment vehicle that defaulted in 2008. Schwab also posted $20 million of charges from two credit card programs to be discontinued amid "challenging card industry economics."

http://www.reuters.com/article/idCNN1514786920100915?rpc=44

$20 million is *a billion dollars* worth of credit card rewards. Just how much were FW users spending?!
The article mentioned in the other thread makes me interpret it differently; as DavidScubadiver said, "They paid twenty million to get out of the card sponsorship. Surprised they signed such an agreement that could not be ended without a lesser penalty." i.e., they probably had to pay that to FIA to break their contract.

Here are my 2c:

1. This change might be the reason why it took so long to get the CashBack this month.

2. I think Fidelity's 2% AMEX will be gone as soon as FIA cuts down the reward of this card. Fidelity launched that card becuase of the pressure from Schwab's 2% card (then new) card.

So what is the next best CashBack card?

Tintin

SUCKISSTAPLES said: I think its no coincidence BofA launched a 2% CashBack card... and since everyone is guessing, Im guessing 2% schwab cardholders will be migrated to the new 2% Bankamericard.While reading the other thread, it struck me that nobody who said they were targetted for the new BOA 2%-2.5% said they were a holder of the Schwab 2% card. So that is a point to support such a theory.

If the Schwab card's benefits are going to be cut, I will not be surprised that Fidelity's benefits could be also on the chopping block. I think Schwab's original intend to roll out the card is to attract people to apply for the card and carry balances on their cards and at the same time move their money over to Schwab's investment brokerage accounts to do their trades so Schwab can earn enough commissions to support/maintain the card. But the move I think got back fired at Schwab because too many people are not carry any balance at all and they aren't using their brokerage accounts to trade either.

beethovengirl said: ellory said: I understand people are concerned. I fail to see the need for baseless speculation. Nothing you can do. No contingency plans you can implement.
I don't know about you, but I'm considering applying for Fidelity/FIA's 2% Cash Back AMEX as a back-up. Not as good as Schwab Visa but the best publicly available alternative.

Anyone else also considering this course of action?
A quality post with a proposed action plan

I have a grandfathered FIA former 529 card that now pays 2% into my Fidelity account.

Might be worth also having the card you propose

mapen said: SUCKISSTAPLES said: I think its no coincidence BofA launched a 2% CashBack card... and since everyone is guessing, Im guessing 2% schwab cardholders will be migrated to the new 2% Bankamericard.While reading the other thread, it struck me that nobody who said they were targetted for the new BOA 2%-2.5% said they were a holder of the Schwab 2% card. So that is a point to support such a theory.
I have the Schwab card and got the letter. I also have a BofA mortgage, which seemed to be a common theme.

Any ideas what will happen with our Schwab brokerage accounts? Will we need to start carrying the minimum balance to avoid monthly fees?

simmias said: I have the Schwab card and got the letter. I also have a BofA mortgage, which seemed to be a common theme.Curses, hopes dashed again I guess I'll be applying for a Fidelity 2% as a backup.


jlgrandam said: Any ideas what will happen with our Schwab brokerage accounts? Will we need to start carrying the minimum balance to avoid monthly fees?Judging from the following FAQ, doesn't seem to be so. For now.

Q: Will there be any changes to my Schwab One brokerage account that is linked to my Invest First credit card?
A: There will be no changes to your Schwab One brokerage account as a result of this sponsorship change. You will continue to enjoy no account balance minimums on your Schwab One brokerage account.

FIA Card Services will provide you with notice if any changes will be made to the reward program, and will explain these changes at a time and in a manner consistent with its commitment to providing clear information to its customers.
Schwab will not participate in these changes in any way.

We all got a $250 Visa debit card for this one. I got two of them. $500 for less then 30 minutes work. Those were the days.

0AfterRebates said: We all got a $250 Visa debit card for this one. I got two of them. $500 for less then 30 minutes work. Those were the days.

Huh? What?


dhl said: 0AfterRebates said: We all got a $250 Visa debit card for this one. I got two of them. $500 for less then 30 minutes work. Those were the days.

Huh? What?



That's why their credit card venture failed. The butterfly effect, a/k/aThe FatWallet Effect. They should had sued FatWallet as soon as it was posted.

The 250 debit card offer was for an older version of the Schwab CC, a non 2% card. I had more than 2 of those, all closed long ago.

beethovengirl said: ellory said: I understand people are concerned. I fail to see the need for baseless speculation. Nothing you can do. No contingency plans you can implement.
I don't know about you, but I'm considering applying for Fidelity/FIA's 2% Cash Back AMEX as a back-up. Not as good as Schwab Visa but the best publicly available alternative.

Anyone else also considering this course of action?

I'm considering it, although I'll probably wait and see what happens with the current Schwab card. I'd think the same pressures would be at work to reduce the CashBack % on the Fidelity AMEX card as with the Schwab card, especially if many people move to it. No one knows how long the 2% will last for the Schwab/FIA card; it could be a month, a year, etc. If I were a much bigger spender on the Schwab card, then I'd have a different take on the situation. As long as I go on vacations and am willing to stay at Starwood hotels, the reward points from my AMEX Starwood card have a similar value to the CashBack from my Schwab card.

Anyone think that, short-term until they inevitably decide to reduce or eliminate the rewards, FIA will change the reward to a statement credit rather than a deposit to Schwab? Don't know why they would keep sending the money to Schwab, and would probably take a little bit of time to set up an alternate (i.e., Merril) arrangement.

ProfessorEd said: One cannot be fear that FIA found this card unprofitable and wanted to make changes that Schwab did not want to take the heat for (i.e. having induced people to open accounts with the promise of a card with certain very desirable features and then discontinuing these features. Hence the emphasis on FIA being reasonable for any terms changes and not Schwab. They say several times:"Schwab will not participate in these changes in any way.")

ellory said: I understand people are concerned. I fail to see the need for baseless speculation. Nothing you can do. No contingency plans you can implement. Just wait to hear the outcome

Otherwise this thread will become just like the Chase Rewards thread where Craig has been posting for years (literally) that the rewards and the world is ending. He's been wrong of course - but even if he was right.what's the point of all this hand wringing?


Actually, i wasn't wrong at all...but what i did not anticipate was that Chase can take literally YEARS to totally phase out a rewards program...even though they have been slowly bumping people off Rewards Plus and Cash Plus for a number of years now (in fact i understand a new "round of these" just began recently which take effect Oct 1st)...At the time i originally posted about Chase, i THOUGHT they operated like Citibank and others in that when a rewards program is phased out, it's done very quickly...My predictions about others (such as Associated Bank dumping their rewards program quickly and also Citibank) was spot on..but Ellory refuses to give me any credit for those predictions that came off exactly as i said they would...All he will do is keep harping on my one "misfire" and that is because i didn't know the strange way in which Chase seems to operate...

Regarding this Schwab/FIA situation...well, as we all know, once FIA gets total control over something...anything goes...so, hope for the best..but expect the worse...

From what I can see, we'll still get the 2% CashBack and no international exchange fee. Correct?

shallot said: From what I can see, we'll still get the 2% CashBack and no international exchange fee. Correct?

For now...

I went ahead and applied for the Fidelity 2% card... in case they decide to stop accepting applications for it.

simmias said: mapen said: SUCKISSTAPLES said: I think its no coincidence BofA launched a 2% CashBack card... and since everyone is guessing, Im guessing 2% schwab cardholders will be migrated to the new 2% Bankamericard.While reading the other thread, it struck me that nobody who said they were targetted for the new BOA 2%-2.5% said they were a holder of the Schwab 2% card. So that is a point to support such a theory.
I have the Schwab card and got the letter. I also have a BofA mortgage, which seemed to be a common theme.

I didn't receive the targeted offer for the BoA 2 - 2.5% Cash Back card. I also have a Schwab card and BoA mortgage. Also, I've deposit accounts with BoA, a HELOC with them, an NEA Visa (with a small CL), and a recently deceased Merrill Accolades AMEX, whose also-small CL was transferred to the Schwab card. (Sigh.)

BoA (actually FIA credit analysts) have told me that I'm pretty much maxed out on my credit card total CL with BoA cards (and the Schwab card, where most of my lines went to). I still ocassionally get business credit card offers from BoA, though.

It's anybody's guess as to how BoA selects people for the 2 - 2.5% targeted offer.

I think there's a better chance the Fidelity card will stick around. I'm sure it makes more money for them, for the following reasons:

1. AMEX fees are higher than VISA/MC
2. Foreign Exchange fees
3. The minimum 5,000 point redemption means that some people won't redeem all points, and FIA retains money until someone gets 5,000 points

Not to say it will stick around, but I'm not surprised Schwab went out first.

does it also relate to schwab bank Signature Visa?

manuvns said: does it also relate to schwab bank Signature Visa?They're getting rid of all cards, signature or not. Signature is just a status created by Visa.

Looks like the writing is on the wall for this card. I'm going to keep my eye out for another good VISA/Mastercard.

abacti said: Go for another 2% Cash Back card, either HSBC orchard card or Household card !!

Is the "HSBC orchard card" you refer to the Orchard Bank Online ecosmart Card? Also, does the "Household card" remain 'by invitation only' as the content of the http://www.fatwallet.com/forums/finance/288784/?start=400 thread (whose last post is dated August 11, 2007) indicates?

The 2% Household card has been around since 2004; perhaps finding a way to receive such a card offers the opportunity to have a high rewards card that won't be cancelled in a year or two...

JTFH said: I'm scared... Someone hold me.
Quite the appropriate reaction!
... I feel your pain ...

Thanks OP!

How long is the notice period they have to adhere to in order to reduce the cash-back and/or increase the foreign transaction fee?

Ok, so I just called the number on the back of my card and just like this guy I was told that the card will be rebranded as a FIA Card but not until next year.

There are currently no plans to change the rewards terms or lack of foreign exchange fees. Starting October 1, you will indeed be able to have the Cash Back deposited into ANY account that you wish and not just a Schwab account and the Cash Back will continue at the beginning of each month.

No idea if this'll change in 2011 when they rebrand but for now the card is even more flexible than before since you no longer need a Schwab account.

I was hoping this card would be bought and maintained by a consumer friendly credit provider back when it was first issued via FIA.

FIA which has been crippling all the old MBNA credit cards features and benefits along with providing sub-par customer service is possibly the reason why some consumers cannot differentiate them from the likes of Capital One, HSBC, Credit One, First Premier, etc.

Even though I don't endorse Chase, they are one of the few credit card issuers with more reliable choices. I prefer AMEX, Penfed, USAA.

JTFH said: I'm scared... Someone hold me.

Hey...its ok...I'm scared too.

It was fun while it lasted. Guess I will fall back on my 1% CB Chase CC if this "Schwab" CC no longer offer 2% CB (not going to open another CC such as Fidelity -who says they won't do the same thing?).

When I first got the card, I had the most pleasant conversation with the FIA rep, welcoming me to the card.
They then gave me a very generous CL raise from 2k to 15k (Chase would only give me 8k CL, and I've been with them since WaMu)

Off the top of my head, I can imagine the monthly ACH being used to fulfill direct deposit requirements for rewards, so I assume people are going to start moving these to Coulee Bank ACH?

If/when they do kill the card, does FIA allow a CL transfer to a new card?

Those of you considering applying for the Fidelity AMEX card for backup purposes, remember that FIA underwrites that card as well. Hence, by applying for the Fidelity card, you will be jeopardizing your Schwab credit line as well as those associated with all other BOA credit cards. BOA/FIA's credit analysts have been brutal lately and there are NUMEROUS reports of credit line choppage and card closures occurring when people bring attention to their BOA/FIA credit exposure through new credit card applications. Think twice about applying for the Fidelity card, especially if you have fairly generous existing credit lines with BOA/FIA.

If this "Schwab" CC no longer offers 2% CB, I'm going to fall back on my cr@ppy 1% Discover Open Road card that only pays when I reach $20.00 worth of rewards and I have to do it manually.

I'm going to miss monthly CB rewards.



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