Discover Card account terms changing

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Did anyone else get this mail today?

Summary of Changes. Please see below for full details.

• If you pay late or otherwise fail to comply with any other terms of the “Default Rate” section of your Cardmember Agreement, the rate that will apply will now be a variable rate. We are also making other changes to the “Default Rate” section.
• For all purchases not made in U.S. dollars, we are adding a fee of 2% of the U.S. dollar amount of each purchase.
• If a grace period does not apply, Periodic Finance Charges will now be imposed from the Transaction Date (instead of the Post Date) for the transaction as shown on your billing statement, unless a transaction is posted to your Account after the close of the billing period in which it occurs, in which case we will impose Periodic Finance Charges on that transaction from the first day of the billing period in which it is posted to your Account.
• If a grace period does not apply, we will now add new transactions to the daily balance as of the Transaction Date for the transaction as shown on your billing statement, unless the transaction is posted to your Account after the close of the billing period in which it occurs, in which case the transaction will be added to the daily balance as of the first day of the billing period in which it is posted to your Account.
• We are changing certain addresses in your Cardmember Agreement.
• We are reducing the number of tiers that apply to calculate CashBack Bonus®.
• We are making certain changes to the redemption methods and/or amounts for the CashBack Bonus and Miles Programs.
• We are discontinuing the change of address notification feature for Wallet Protection and The Register®.

Member Summary
Most Recent Posts
I just cashed out my balance... I have had this card for over 15 years. My balance was in the thousands... I'm getting ... (more)

CPAESQ (Apr. 15, 2009 @ 12:28p) |

You can still cash out after only $20 if you take it as a Discover Gift Card instead of cash/statement-credit.

naas (Apr. 15, 2009 @ 12:30p) |

Discover is hurting Text.
They need to win back customers. They might have some great promotions in the future.

sackoloot (Apr. 15, 2009 @ 11:10p) |

Quick Summary is created and edited by users like you... Add FAQ's, Links and other Relevant Information by clicking the edit button in the lower right hand corner of this message.
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Was just about to post this.

Discover is my longest tenured credit card. I've had it for 20 years. I've never had any problems with their service. But restricting the CashBack to increments of $50 for cash/account credit (you will be able to use any dollar amount over $20 for their partner merchant gift cards, however) and making the first $3000 now only .25% Cash Back before getting to the 1% tier might just spell the beginning of the end for me. Other cards have better bonuses. The other terms generally don't affect me because I pay it off every month.

Seriously gonna have to re-organize the cards in my wallet.

shadow520, agreed. To the sock drawer. Time to apply for the Schwab 2% card or th good Fidelity one.

wow this goes for the Discover More card too, i assume?

As far as I can tell, it appears to be for all Discover cards. If someone has evidence contradicting me, PLEASE post it so that we can figure out which cards are and are not affected.
What about business cards?

Discover has been my primary card for the last 6 years or so. Always had great service. This is a real shame, but I recently got the PenFed card, so, my lovely Discover card... meet my socks!

I am sorry to see Discover now charges 2% for foreign transactions

Got the same. I only use them for gas and vehicle maintenance and the 5% I get for both, also PBIF, so I care less about default APR.

I moved Discover to #2 some time ago in fasvor of AMEX and 1.5% awards. Looks like Discover may be heading to #3 behind my Visa.

I called DC when they maxed the gas credit at $100/mo. I told her my other cards pay more than .25%, she said no most cards are equal to DC, and I should check. Maybe I called fantasy land by mistake.

I did not get this... yet. Would the change be somewhere on mydiscover site? If so where?

JYX said: I am sorry to see Discover now charges 2% for foreign transactions

It doesn't matter too much actually since most area in the world doesn't accept DC.

China accepts Discover... and thats the most populous country in the world.

Poorly played by discover...

Good time to try to sneak something in like this, when everyone is micromanaging their money.

When does this policy go in effect?

threeuncle said: JYX said: I am sorry to see Discover now charges 2% for foreign transactions

It doesn't matter too much actually since most area in the world doesn't accept DC.


Well. I was using it a lot when I travelled to China.

EvilCapitalist said: When does this policy go in effect?

I'm looking at the fine print and it should go into effect after May 1st.
(the fine print also lets discover randomly change the date)

"These changes will apply to your Account effective for billing periods that end after May 1, 2009, unless otherwise specified."

I don't really care. I only use the DC to make my min. 2 transactions/month to maintain my 0% BT interest for life. I spend $1.26 twice a month at USPS and pay my min. payment each month. I bet DC hates me.

shallot said: I don't really care. I only use the DC to make my min. 2 transactions/month to maintain my 0% BT interest for life. I spend $1.26 twice a month at USPS and pay my min. payment each month. I bet DC hates me.

Accounts like yours are probably one of the reasons why they're changing the terms for everyone else.

Not that I think you're doing anything wrong; but it's probably best not to brag about how you're causing everyone else's situation to get worse.

shadow520 said: making the first $3000 now only .25% Cash Back before getting to the 1% tier might just spell the beginning of the end for me. Other cards have better bonuses. The other terms generally don't affect me because I pay it off every month.Their requirement to spend $3000 to get to 1% has caused me to only use Discover for their 5% promos for a long time now. if this change is getting you to wake up and realize how poor their rebates are, then I guess it's a good thing.

threeuncle said: It doesn't matter too much actually since most area in the world doesn't accept DC.Many places in the US don't either. I always joke that their 5% restaurant promo is a reminder for me of just how many places do not take it (although I did manage to max it out this time because of the holiday free promo gift card with gift card purchase deals).

HCAA said: threeuncle said: JYX said: I am sorry to see Discover now charges 2% for foreign transactions

It doesn't matter too much actually since most area in the world doesn't accept DC.


Well. I was using it a lot when I travelled to China.


Me too. Thats too bad. What else cards still do not charge forex fee in China, do you guys know?

When are these changes effective?

badguy said: HCAA said: threeuncle said: JYX said: I am sorry to see Discover now charges 2% for foreign transactions

It doesn't matter too much actually since most area in the world doesn't accept DC.


Well. I was using it a lot when I travelled to China.


Me too. Thats too bad. What else cards still do not charge forex fee in China, do you guys know?
schwab and capital one

i was seriously considering getting a discover for the first time, but after hearing this... nope

So let me see if I got this straight. Under their new terms ($50 cashout minimum, .25% for the first 3K)... I could theoretically spend $250 a month, every month, for the next 6 years and still not qualify for any CashBack?

Pathetic!

just got an email from discover saying that there are changes to my account terms and to view these online by logging in. changes effective billing period after 5/1/09.

while I dont necessarily agree with discover changing their terms, I am somewhat surprised that they are giving at least some sort of effort in regards to notifying customers about this and don't think they are explicitly trying to hide it.

bassmanben said: while I dont necessarily agree with discover changing their terms, I am somewhat surprised that they are giving at least some sort of effort in regards to notifying customers about this and don't think they are explicitly trying to hide it.Huh? The CashBack change is buried near the bottom of the list! And they HAVE to announce it.

iLoveTahoe said: So let me see if I got this straight. Under their new terms ($50 cashout minimum, .25% for the first 3K)... I could theoretically spend $250 a month, every month, for the next 6 years and still not qualify for any CashBack?

Pathetic!
Well, for the non-heavy user, obviously you're going to want to redeem the $20 merchant rewards (which give you a 25% bonus in value, anyway). $50 is standard for redeeming rewards at Citi and Chase. Of course, they give you a straight 1% (or more) on those cards.

The reduction in the < $3000 spending rebate is not that big of a deal -- you're only losing $7.50 a year. You were getting an average of a half percent on the first $3000 before, now it's a quarter.

billrubin said: Huh? The CashBack change is buried near the bottom of the list! And they HAVE to announce it.do they have to send emails to customers notifying them of the change and to view it online? I don't remember any of my other credit card issuers doing that. Normally they will just include a 1 page document in my paper statements (which I pretty much never read anymore).

billrubin said: shadow520 said: making the first $3000 now only .25% Cash Back before getting to the 1% tier might just spell the beginning of the end for me. Other cards have better bonuses. The other terms generally don't affect me because I pay it off every month.Their requirement to spend $3000 to get to 1% has caused me to only use Discover for their 5% promos for a long time now. if this change is getting you to wake up and realize how poor their rebates are, then I guess it's a good thing.

Discover was the original rebate card. Like I mentioned, I've had it for 20 years. But they're not my number one card anymore, haven't been for at least a year. I have Chase Freedom (closing in on my second $250 check in 13 months) and AMEX Starwood as #1 and 2 right now (both obtained at the beginning of last year). But I've gone from earning $200 a year on Discover to less than $100 as I shift those expenses to other cards for bigger rebates.

But I mentioned the beginning of the end to mean that it will no longer be in protected status from closure when I go through credit card purges. The tenure time on it is the only thing that bugs me. I don't micro-manage my credit reports like many here at FWF, but I am very close to 800 so I don't want it to take a hit.

So just leave the card open and put it in your drawer. I never use my Discover card except for the 5% quarterly bonuses.

billrubin said: So just leave the card open and put it in your drawer. I never use my Discover card except for the 5% quarterly bonuses.
just make sure you use it at least once a year or they may close it, a practice now being implemented at Chase and Citi.

In the months when I have no use for the card because I have no purchases in the 5% bonus category, I go to Home Depot or a supermarket and make a purchase under $2.00 (including tax) with my Discover card. They don't bother billing for these small balances, they give a "small balance credit" instead.

This way, I get some benefit from the card every month!

bluechalk said: In the months when I have no use for the card because I have no purchases in the 5% bonus category, I go to Home Depot or a supermarket and make a purchase under $2.00 (including tax) with my Discover card. They don't bother billing for these small balances, they give a "small balance credit" instead.

This way, I get some benefit from the card every month!


Ooh! I didn't know that. I guess I should go order a cheeseburger at MickeyD's for the month of Jan-Mar since I have travel plans that involves airfares, car rentals, cruises, etc. that is part of the first quarter's 5% CashBack.

Given the loss of value with Discover I was trying to apply for the Chase Freedom card--the website accepts the application then says the offer is expired. They don't do phone or mail apps, there are no branches in the state. Customer service is just bouncing me around.

Any ideas?

shallot said: I don't really care. I only use the DC to make my min. 2 transactions/month to maintain my 0% BT interest for life. I spend $1.26 twice a month at USPS and pay my min. payment each month. I bet DC hates me.

spendthrift! I spend 3 cents twice per month at my local gas station.

iLoveTahoe said: So let me see if I got this straight. Under their new terms ($50 cashout minimum, .25% for the first 3K)... I could theoretically spend $250 a month, every month, for the next 6 years and still not qualify for any CashBack?

Pathetic!

Oh, your points would expire long before that.

psychtobe said: shallot said: I don't really care. I only use the DC to make my min. 2 transactions/month to maintain my 0% BT interest for life. I spend $1.26 twice a month at USPS and pay my min. payment each month. I bet DC hates me.

spendthrift! I spend 3 cents twice per month at my local gas station.

My local gas station won't let me do that. They make me spend a min. of $10.

shallot said: My local gas station won't let me do that. They make me spend a min. of $10.Even for pay at the pump? How can they stop you?

Skipping 11 Messages...
Discover is hurting Text.
They need to win back customers. They might have some great promotions in the future.



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