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Although I noticed an occasional reference to this in various posts, I didn't see a post dedicated to this.

I recieved the following letter in the mail:

Dear _______
Effective July 15, 2007 your cash plus rewards program is changing to the new Chase Freedom reward program. the changes that take place are as follows:

Earn 3% Cash Back on eligible purchases in the top 3 categories where you spend the most each month.....your categories can change each month...you earn 1% Cash Back on all other purchases...unlimited rewards...



I do not know if everyone is getting this letter immediately, but I'm sure sooner or later they're going to do this to everyone. I know in my post about the advanta card discontinuing their current program, there were a lot of non believers and I'm sure there will be a few here, as well, not wanting to believe this...
As we all know CSR's aren't always accurate (being polite) but the 2 CSR's I spoke with said they are doing this to everyone and said they are completely doing away with the cash plus rewards. For anyone that's curious, I had this card for a number of years with this program and have used it aggressivly, although you never know, maybe I'm just unlucky and everyone else will be spared

I don't have access to a scanner, otherwise I would put a scan of it. If anyone else got the letter and can scan it for others to see, that would be great.

Member Summary
Most Recent Posts
Finally! Down goes my Chase Cash Plus Visa. /sarc on The letter really outlines how much of an upgrade this is, thanks c... (more)

lookingdeals (Jun. 28, 2012 @ 2:30a) |

PenFed Platinum for Gas (5%)
https://www.penfed.org/Platinum-Rewards

AMEX Blue Cash Preferred for Groceries (6%)
http://blu... (more)

WWScoobyDo (Jun. 28, 2012 @ 11:18a) |

No need to do the math. I recommend just apply for the Blue Cash Preferred over the Blue Everyday card.
First, you get h... (more)

echip (Jun. 28, 2012 @ 10:08p) |

POLL:

Have you gotten the letter yet?

Yes

googolplex


No

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Please increment the count to vote yes or no, to keep it clean, do not include additional info.
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A few others on FW have posted this on one of the Chase Cash Plus threads, saying that they received the same letter that you did...This was within the last few weeks, so i don't think they will be too surprised or not believe you....It does seem like the 5% deal at Chase is coming to an end, and they are sending out letters (and converting) all the Cash Plus customers over to Freedom...

I have Rewards Plus (the other Chase 5% card) and haven't received, or seen any posts yet on FW about Rewards Plus customers receiving such a letter, yet...but no doubt, we will follow....I think we all knew it would happen eventually...at least they did let us keep it for quite a long time after they stopped issueing the cards...

Freedom is not bad though, because it covers many more catatgories (of which 3 each month) you get the bonus on...and also, if you wait until you have $200 accumulated, you get an extra $50 bonus! So, while not as good as 5%, obviously, better then Citi's 2% deal that they have now....

I also noticed reading the fine print that although you can earn unlimited rewards on the card, the 3% (really additional 2 on top of the 1) is only valid for the first $12 in rewards each month ($600 in net purchases) so to earn the $200 to get the extra $50 bonus will take 17 months! (assuming you only use the card to earn from the bonus categories)

that's why they offer the $50 bonus if you wait until $200...to encourage you to use the card for your 1% purchases, as well, which will shorten the time it takes to reach it...

I use my Freedom for my 1% purchases as well as my 3% ones...

i've got a cash plus rewards MC and a rewards plus visa. i haven't gotten a letter from chase yet on either one. if my rewards plus visa is changed to freedom, i'll get a penfed visa (i shop at WalMart anyone so i don't get 5% on groceries or drug stores). but i'd have to keep the cash plus rewards mastercard for sams club.

Well that sucks.

Man, it used to be easy to figure out which card to use, but now with most of the programs being changed and limiting you to certain amounts each month (Advanta/Chase), you might as well pick your favorite card and use the bejeebus out of it.

Oh bummer, another poor FW'er getting the end of 5% letter We haven't gotten ours yet (crosses fingers), but then again we just signed up for Cash Plus about 8 months ago.

Not sure about you but our plan, upon receiving this letter, would be to sign up for a Citi Diamond Preferred (5% gas grocery drugs, paid in ThankYou points for one year) and 6000 free points (10k points is worth $100 in gift cards).

CRAP!!!!!!

crazypalooza said: Earn 3% Cash Back on eligible purchases in the top 3 categories where you spend the most each month.....your categories can change each monthWhat is this? I've seen this referenced quite a bit in the Freedom card thread, but have yet to see any specifics on what these categories are...

centrifuge41 said: Oh bummer, another poor FW'er getting the end of 5% letter We haven't gotten ours yet (crosses fingers), but then again we just signed up for Cash Plus about 8 months ago.

No letter for me yet either, I though maybe it's timed to your statement but mine closed last week. Would be good if we could put together some data points. Like how long have you had, Did you carry balance, did you use only for EDP, Would be nice if we could figure out a pattern. I would have thought I would have been one of the first to get letter, I PIF and only use for 5% purchases and got the card when it was first offered

I have yet to receive the letter, but I'm dreading its inevitable arrival.

For what it's worth:
1. MC opened April 2006 with $100 bonus
2. Carried a balance during the 0% promo period, now balances paid in full every month
3. Use primarily for EDP, with a small selection of 1% stuff

I haven't received the letter yet but I am sure we all will. With this I don't think there is a popular card left that gives 5% on groceries and drug store purchases. I will swtich to my discover gas card for my gas purchases as it gives 5% back. For all other stuff I will switch to Citi Platinum which gives 3 thankyou points for every $1 spent. Lets see how it goes...

I guess that AMEX Blue with it's tier doesn't interest most people. But I get 5% on ED for most of the year. AMEX also doesn't have some silly requirement that the card be swiped at the pump to get the gas station discount. Still, I'm at 2.2% rebate overall the first 6 months of my 'year' without worrying about which card to use at what merchant. AMEX being accepted just isn't much of a problem anymore either. My backup MC for piker merchants who don't accept AMEX sees less than $100 month in purchases nowadays. Maybe this program will go away too, but has a lot more chance of sticking around since AMEX charges ~4% to the merchant vs 1.5% for Visa/MC. V/MC have practically nothing left over on a non-ED purchase after coughing up a 1% rebate.

WalStMonky said: I guess that AMEX Blue with it's tier doesn't interest most people. But I get 5% on ED for most of the year. AMEX also doesn't have some silly requirement that the card be swiped at the pump to get the gas station discount. Still, I'm at 2.2% rebate overall the first 6 months of my 'year' without worrying about which card to use at what merchant. AMEX being accepted just isn't much of a problem anymore either. My backup MC for piker merchants who don't accept AMEX sees less than $100 month in purchases nowadays. Maybe this program will go away too, but has a lot more chance of sticking around since AMEX charges ~4% to the merchant vs 1.5% for Visa/MC. V/MC have practically nothing left over on a non-ED purchase after coughing up a 1% rebate.
I am not that worried about losing my Chase 5% because of the AMEX, Had not been using mine because it seemed to many did not take it, So when I saw here that it looks like Chase would be ending 5% I figured I better start with AMEX. Got lucky when I bought my new car a few weeks ago and dealer let me put $5k on the Blue Cash so was able hit the $6500 easily. Still wish AMEX was more widely accepted, I know I can't pay college bill with it and I did have a couple other large purchases who would not accept. Not sure what merchant fees are on cards but I read this in a recent story:

That's because American Express charges merchants nearly 2.6 percent in fees for every dollar of transactions done with its cards, compared with less than 2 percent on average for Visa and MasterCard, Bezard said.

user0001 said: crazypalooza said: Earn 3% Cash Back on eligible purchases in the top 3 categories where you spend the most each month.....your categories can change each monthWhat is this? I've seen this referenced quite a bit in the Freedom card thread, but have yet to see any specifics on what these categories are...

Link for the Chase Freedom Card

Although the link doesn't really help you much as it doesn't go through the facts in detail. I would recommend calling chase for the nitty gritties. The basic concept is that the three categories that you spend the most in that month, you will recieve your 3% in. (ie if you run up a big tab this month at the dry cleaners that could be a category)

"No letter for me yet either, I though maybe it's timed to your statement but mine closed last week. Would be good if we could put together some data points. Like how long have you had, Did you carry balance, did you use only for EDP, Would be nice if we could figure out a pattern. I would have thought I would have been one of the first to get letter, I PIF and only use for 5% purchases and got the card when it was first offered"
__________________________________________________
Ok: here are my specs: Had the card for at least 3 years or more. never carried a balance or utilized the 0% offer on my card. Location= East Coast/ New England. Didn't just use the card for edp, used it for most of my purchases (except for utilities and Office supply purchases which I used advanta card to get %5) roughly a couple grand in purchases each month. Hope this helps to identify.

when they switch you over, are you going to loose the rewards that you already have saved up or with those covert also to the new plan? i have not recieved the letter yet but will probably soon.

I don't have the letter yet. If it comes to it, I'll probably go with Chase Freedom. At least Chase give you the best redemption rate for cash and cash is the ultimate gift card!!

AMEX has a dilution rate of .50 for Cash Back. Citi's TYN is about .625 for Cash Back.

No letter here yet...do any of the people who got the letter already have a Chase Freedom? Wonder if that plays a role or not. If they do end up coverting me I will complain that I already have a Freedom.

ChrisV said: No letter here yet...do any of the people who got the letter already have a Chase Freedom? Wonder if that plays a role or not. If they do end up coverting me I will complain that I already have a Freedom.

They told me that they role over your earnings.

also to address the question about having the chase freedom, I actually have the chase freedom already, signed up for it to get the $250 signup bonus they offered a number of months ago

I didn't get the letter from from chase yet. I think I also have the 5% from the citibank card too.

crazypalooza said: ChrisV said: No letter here yet...do any of the people who got the letter already have a Chase Freedom? Wonder if that plays a role or not. If they do end up coverting me I will complain that I already have a Freedom.

They told me that they role over your earnings.

also to address the question about having the chase freedom, I actually have the chase freedom already, signed up for it to get the $250 signup bonus they offered a number of months ago

That's good about rolling over the earnings. I wish I wouldn't have just requested a $50 check. I could have been closer to getting an extra $50.

henny said: I don't have the letter yet. If it comes to it, I'll probably go with Chase Freedom. At least Chase give you the best redemption rate for cash and cash is the ultimate gift card!!

AMEX has a dilution rate of .50 for Cash Back. Citi's TYN is about .625 for Cash Back.


Umm, what is the 'dilution' rate you are referring to? AMEX gives me 100% of the cash I earn in cash, so I'm puzzled.

WalStMonky said: henny said: I don't have the letter yet. If it comes to it, I'll probably go with Chase Freedom. At least Chase give you the best redemption rate for cash and cash is the ultimate gift card!!

AMEX has a dilution rate of .50 for Cash Back. Citi's TYN is about .625 for Cash Back.


Umm, what is the 'dilution' rate you are referring to? AMEX gives me 100% of the cash I earn in cash, so I'm puzzled.


He's referring to those who get AMEX points instead of straight cash.

ChrisV said: No letter here yet...do any of the people who got the letter already have a Chase Freedom? Wonder if that plays a role or not. If they do end up coverting me I will complain that I already have a Freedom.

I doubt if that would have any effect on it...i think the idea is that Chase wants to close down the 5% programs and have everyone on 3%...To "sweeten" it, it seems that when they switch, they are automatically giving you the "dynamic rewards" (also known as "essential 15 catagories") version of the program....

I have Rewards Plus...and no doubt we will be next after they finish removing all the Cash Plus cards....
Oh, and to those who asked: yes, when they convert you, your points carry over to the new program....

gOt129 said: WalStMonky said: henny said: I don't have the letter yet. If it comes to it, I'll probably go with Chase Freedom. At least Chase give you the best redemption rate for cash and cash is the ultimate gift card!!

AMEX has a dilution rate of .50 for Cash Back. Citi's TYN is about .625 for Cash Back.


Umm, what is the 'dilution' rate you are referring to? AMEX gives me 100% of the cash I earn in cash, so I'm puzzled.


He's referring to those who get AMEX points instead of straight cash.


On Citi's program, you used to be able to get $50 gift cards for 5,000 points making it 1%. The price went up on the $50 gift cards, so now you have to save up 10,000 points to buy a $100 gift card to get back 1%. I can use those Home Depot gift cards to fix up my house.

It sucks, sucks, sucks. I live close to work, so I don't spend too much on gas. Most of my budget goes to Wal-Mart for groceries. I think all the credit card companies are purposefully making it difficult to compare all the rewards cards, so you don't know which is the best deal.

crazypalooza said: user0001 said: crazypalooza said: Earn 3% Cash Back on eligible purchases in the top 3 categories where you spend the most each month.....your categories can change each monthWhat is this? I've seen this referenced quite a bit in the Freedom card thread, but have yet to see any specifics on what these categories are...

Link for the Chase Freedom Card

Although the link doesn't really help you much as it doesn't go through the facts in detail. I would recommend calling chase for the nitty gritties. The basic concept is that the three categories that you spend the most in that month, you will recieve your 3% in. (ie if you run up a big tab this month at the dry cleaners that could be a category)


The categories are listed in the Quick Summary for the Chase Freedom Card has $250 sign-up bonus now!! (for first-time user?) thread. It is also discussed in various places throughout the thread.

crazypalooza said: I also noticed reading the fine print that although you can earn unlimited rewards on the card, the 3% (really additional 2 on top of the 1) is only valid for the first $12 in rewards each month ($600 in net purchases) so to earn the $200 to get the extra $50 bonus will take 17 months! (assuming you only use the card to earn from the bonus categories)

Isn't 3% of $600 = $18?
So just using the card in the bonus categories it would take about a year to hit $200.

breaux124 said: crazypalooza said: I also noticed reading the fine print that although you can earn unlimited rewards on the card, the 3% (really additional 2 on top of the 1) is only valid for the first $12 in rewards each month ($600 in net purchases) so to earn the $200 to get the extra $50 bonus will take 17 months! (assuming you only use the card to earn from the bonus categories)

Isn't 3% of $600 = $18?
So just using the card in the bonus categories it would take about a year to hit $200.


Yes, sounds right to me...i think he overcalculated...LOL And even less then a year, if you also did 1% purchases on it,
as well....

craig10x said: breaux124 said: crazypalooza said: I also noticed reading the fine print that although you can earn unlimited rewards on the card, the 3% (really additional 2 on top of the 1) is only valid for the first $12 in rewards each month ($600 in net purchases) so to earn the $200 to get the extra $50 bonus will take 17 months! (assuming you only use the card to earn from the bonus categories)

Isn't 3% of $600 = $18?
So just using the card in the bonus categories it would take about a year to hit $200.


Yes, sounds right to me...i think he overcalculated...LOL And even less then a year, if you also did 1% purchases on it,
as well....




The $12 and $600 in net purchases, were chase's wording and math -not mine.
The reason you say $18 a month and they say $12 is because you always get 1% so they are only doing the math at a 2% rate to ADD to the 1% that you would be getting anyway.

So looking at it from your point of view, yes in a year, you would hit $200.

yep..i was taking the whole 3% into consideration as the other poster was as well.....Of course, if you use it as your primary card (as i do) and also make alot of 1% purchases as well (including large ones) then it should take alot less then a year to reach it...

I have a different view on this.

I had Chase Shell card long long time ago. When later Citi got the Shell card, Chase gave out Chase Freedom card to all the Chase Shell card member. At that time, it was 5% on any gas station. Later, Chase changes the terms so certain users are defined as 5 point charter and still gets 5% while other regular users still have 3%. Even later they convert every Freedom card into Perfect card, the 5 point charters users still have the 5% on any gas station purchase(now still).

So I think it is possible if they are going to convert all the Cash Plus reward to Freedom, they may still pick up certain amount users and grant them the benefit they had. But who will be picked? I said those who spend on the card regularly, pay on time, not use this card only on the 5% category, will possibly the lucky ones.

Just a thought, hopefully that is the case.

I would not redeem Cash Plus rewards prior to convertion. You are earning 5% now, but after convertion $200 will become $250 (25% bonus), making your effective earnings 6.25%. I'll buy a bunch of supermarket GCs right before the convertion.

I have not received any letter yet. My wife got an OFFER to convert to Chase Freedom in the mail three times, but it was not required. She did convert her card at the end because we have other 5% or better cards right now and we were interested in the additional categories. However, when I called the same number and asked to convert MY Cash Plus into Freedom, CSR said I wasn't eligible!

I have both Cash Plus & Rewards Plus but have not gotten a letter (yet). Rewards Plus is not used, Cash Plus gets used monthly for EDP.

It's a good thing Penfed now offers 5% on gas, since that is by far my largest EDP expense.

user0001 said: crazypalooza said: Earn 3% Cash Back on eligible purchases in the top 3 categories where you spend the most each month.....your categories can change each monthWhat is this? I've seen this referenced quite a bit in the Freedom card thread, but have yet to see any specifics on what these categories are...
So how many Chase Freedom cards can one person have? If I have several Freedom cards and use each one for purchases in only 1-3 categories and choose a different, disjoint set of 1-3 categories for each of my Freedom cards, then I could be earning close to 3% on nearly all of my categorical purchases under my Freedom cards.

Is anyone doing this?

that could be done joel, since each card is seperate..so if you had 2 cards, you could actually have 3 different catagories emphasized on each one to get the 3% on each card (6 in all)....They would have to be redeemed seperately of course..

This is why I hate JP Morgan/Chase.

That is all.

crazypalooza said: craig10x said: breaux124 said: crazypalooza said: I also noticed reading the fine print that although you can earn unlimited rewards on the card, the 3% (really additional 2 on top of the 1) is only valid for the first $12 in rewards each month ($600 in net purchases) so to earn the $200 to get the extra $50 bonus will take 17 months! (assuming you only use the card to earn from the bonus categories)

Isn't 3% of $600 = $18?
So just using the card in the bonus categories it would take about a year to hit $200.


Yes, sounds right to me...i think he overcalculated...LOL And even less then a year, if you also did 1% purchases on it,
as well....




The $12 and $600 in net purchases, were chase's wording and math -not mine.
The reason you say $18 a month and they say $12 is because you always get 1% so they are only doing the math at a 2% rate to ADD to the 1% that you would be getting anyway.

So looking at it from your point of view, yes in a year, you would hit $200.


Plus the Chase card had a rewards cap of $300 per year (at least mine did). So if you charge $600 per month on 3% items and get the $200 which gets you a $250 check you only lose $50 per year in rewards.

Wayne

Even without the bonus % earnings, this is a nice card. $200 in rebates will net a $250 check. That's a straight 1.25% Cash Back overall. Then you factor in the bonus earn and the shopping portal and you can be upwards of 1.4%-1.5%.

Skipping 1382 Messages...
WWScoobyDo said:   

AMEX Blue Cash Preferred for Groceries (6%)
http://bluecashcards.americanexpress.com/home/#/
(have to do a little math to make sure preferred is what you need based on your average grocery bills, otherwise, 3% from Penfed)


No need to do the math. I recommend just apply for the Blue Cash Preferred over the Blue Everyday card.
First, you get higher bonus $150 vs $100.
Second, you earn up to 6% CashBack vs 3%.
Thirdly, there is no annual for the first year. So you can always call before 1 year is up to switch to the Everyday card with no annual fee.

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