Schwab ending card sponsorship - says no terms change though

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...

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

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.

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.

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

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

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.

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.

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.

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...

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

For now...

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.

does it also relate to schwab bank Signature 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.

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

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?

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.

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?).

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.