PenFed VISA - Rewards Change

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I got a notice with my monthly PenFed VISA statement that effective February 1, 2010 the rewards are changing to 5% for gas paid at the pump, 2% on groceries, and 1% on all other purchases (previously 1.25%). I'm curious if this is going out to everybody. The website still shows 1.25% for the time being ...

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That would really suck. Nothing yet here.

Who cares I only use it for gas anyway.

tripleB said: Who cares I only use it for gas anyway.Who cares? Well, BBB, more than a few of us for whom this card is the all-purpose spender, that's who.

I just hope it isn't the start of a string of rewards drops on this card.

bogalusa said: tripleB said: Who cares I only use it for gas anyway.Who cares? Well, BBB, more than a few of us for whom this card is the all-purpose spender, that's who.

I just hope it isn't the start of a string of rewards drops on this card.


Of course it is. The subsidization of reward members has been reduced, and thus they are now going to have to pay more of their share for usage and rewards.

All reward cards are changing or will be changing.

aeiouy said: bogalusa said: tripleB said: Who cares I only use it for gas anyway.Who cares? Well, BBB, more than a few of us for whom this card is the all-purpose spender, that's who.

I just hope it isn't the start of a string of rewards drops on this card.


Of course it is. The subsidization of reward members has been reduced, and thus they are now going to have to pay more of their share for usage and rewards.

All reward cards are changing or will be changing.


Although I'd think that Penfed would be _less_ likely to be affected by this trend, since they have tighter credit standards and hence fewer highly profitable customers paying outlandish rates.

bogalusa said: tripleB said: Who cares I only use it for gas anyway.Who cares? Well, BBB, more than a few of us for whom this card is the all-purpose spender, that's who.

I just hope it isn't the start of a string of rewards drops on this card.


The Fidelity AMEX at 2% is a heckuva lot more attractive, honestly.

bogalusa said: tripleB said: Who cares I only use it for gas anyway.Who cares? Well, BBB, more than a few of us for whom this card is the all-purpose spender, that's who.


You are in the minority of FW spenders. You would likely be better off with a 2% everything card then the penfed card unless you buy a lot of gas.

Most FWFers will use the Penfed Card for gas only and use a 2% card for everything else (or perhaps a 3% grocery card in the mix).

I strongly feel that most FWFers would rather the penfed card be reduced from 1.25% to 1% in everyday purchases than have the gas portion reduced.

Thus. Who cares?

I like the PenFed card because it is wife-friendly. Although I personally play the reward games and keep a bunch of cards in my wallet, I like that the PenFed card is a "set-and-forget" for the wife's wallet. Losing the 1/4% sucks but isn't the end of the world. I guess we'll see how this pans out.

bdleonard said: I got a notice with my monthly PenFed VISA statement that effective February 1, 2010 the rewards are changing to 5% for gas paid at the pump, 2% on groceries, and 1% on all other purchases (previously 1.25%). I'm curious if this is going out to everybody. The website still shows 1.25% for the time being ...

Interesting. I got my statement today and it didn't include any notice.

tripleB said: Who cares...

I could say that for every thread you've ever started.

Arfanbarkler said: bdleonard said: I got a notice with my monthly PenFed VISA statement that effective February 1, 2010 the rewards are changing to 5% for gas paid at the pump, 2% on groceries, and 1% on all other purchases (previously 1.25%). I'm curious if this is going out to everybody. The website still shows 1.25% for the time being ...

Interesting. I got my statement today and it didn't include any notice.


It was on a separate one sheet insert, with an ad for the PenFed AMEX on one side and the change notice on the other. I almost threw it away without looking at it closely.

As long as they keep the 5% for gas I am fine with that. 2% Schwab Visa on everything is the real deal anyways.

okwiater said: I like the PenFed card because it is wife-friendly. Although I personally play the reward games and keep a bunch of cards in my wallet, I like that the PenFed card is a "set-and-forget" for the wife's wallet. Losing the 1/4% sucks but isn't the end of the world. I guess we'll see how this pans out.

Man, why is it that it's always the wife that needs things simplified down?

We use our new Schwab as the daily and the used to be 5% (now 4%) costco AMEX for gas.

Obama4Prez said: Man, why is it that it's always the wife that needs things simplified down?Well, I wouldn't go so far as to stereotype all wives, but in my case, when she needs to pay for gas, groceries, or other household items, she just grabs the card that I've given her for that purpose. She's a great girl, but impossible to train in this area. For the $50 in annual rewards I'm sure I'm missing, it's not worth it to fight it.

okwiater said: I like the PenFed card because it is wife-friendly. Although I personally play the reward games and keep a bunch of cards in my wallet, I like that the PenFed card is a "set-and-forget" for the wife's wallet. .

-lol- I agree with you 100% She comes back to me all the time and says "now what card should I be using for __?"

I can't wait until we reach the 6k threshold on the blue Cash Back card...so I can just say "use that for everything" (I like the extended warranty protection)

okwiater said: Obama4Prez said: Man, why is it that it's always the wife that needs things simplified down?Well, I wouldn't go so far as to stereotype all wives, but in my case, when she needs to pay for gas, groceries, or other household items, she just grabs the card that I've given her for that purpose. She's a great girl, but impossible to train in this area. For the $50 in annual rewards I'm sure I'm missing, it's not worth it to fight it.


Just get those colorful posted notes (tabbies) you use for making bookmarks.

Stick one on Penfed (GAS and GROCERIES)
Stick one on Citi Forward, or whatever the card is (RESTAURANTS, MOVIES, MUSIC)
Stick one on Fidelity or Schwab, depending on which you have (EVERYTHING ELSE)

If she can buy groceries, gas, and household items, she can read a tabbed note and figure it out after some repetition =) *don't underestimate her that much lol*

Edited to add the following statement..........

*************** Don't let her deal with Discover 5% rotating, because we all know she won't keep track...you do that yourself**********

howie888 said: Just get those colorful posted notes (tabbies) you use for making bookmarks.

Stick one on Penfed (GAS and GROCERIES)
Stick one on Citi Forward, or whatever the card is (RESTAURANTS, MOVIES, MUSIC)
Stick one on Fidelity or Schwab, depending on which you have (EVERYTHING ELSE)

If she can buy groceries, gas, and household items, she can read a tabbed note and figure it out after some repetition =) *don't underestimate her that much lol*

Edited to add the following statement..........

*************** Don't let her deal with Discover 5% rotating, because we all know she won't keep track...you do that yourself**********

Even though I doubt she would read the stickies and would instead grab whichever card was on top, it's a good idea, and I may give it a trial run. Thanks.

Obama4Prez said: Man, why is it that it's always the wife that needs things simplified down?

I'm with you on that. I had a hard time getting through to my wife that she should use the Penfed VISA for all Amazon.com purchases when they had the 5% school promo in September.

If only we could place right on the card a photo of the items for which the card offers the best rewards. I don't think the issuers that are photo friendly offer any categories, though.

I finally have it down with my spouse. We've been doing stickers on the cards for many years now. Now that most of the card rebates have been reduced, it actually makes it easier. I don't even bother with Discover. From there its
Chase Rewards for 5% EDP at Grocery and Drugstore
PenFed for 5% gas
AMEX Blue Cash for Costco
Chase Business for 3% at restaurants, office supply and Home Improvement
Schwab for 2% on everything else

bye bye .25%

Yes I use it for everything. Yes I could save more with another card. Yes I am lazy.

ellory said: I finally have it down with my spouse. We've been doing stickers on the cards for many years now. Now that most of the card rebates have been reduced, it actually makes it easier. I don't even bother with Discover. From there its
Chase Rewards for 5% EDP at Grocery and Drugstore
PenFed for 5% gas
AMEX Blue Cash for Costco
Chase Business for 3% at restaurants, office supply and Home Improvement
Schwab for 2% on everything else


I wish I was paying attention back when the Chase Rewards was offering that card -- 5% at groceries/Drugstore is really nice..........
It will probably be quite a long time before we ever get to see that type of rewards again!

That sucks, this is my main card....but not that big of a deal. Didn't they just raise their international charge too? Can't remember.

Don't forget that the PenFed VISA has no cash advance fee - somewhat rare. That can be useful in certain situations. Also, even if you stop using it as much - don't close it, for reasons that have been posted here since the beginning of time.

okwiater said: I like the PenFed card because it is wife-friendly. Although I personally play the reward games and keep a bunch of cards in my wallet, I like that the PenFed card is a "set-and-forget" for the wife's wallet. Losing the 1/4% sucks but isn't the end of the world. I guess we'll see how this pans out.

Wow you could not be more correct.

I was planning on applying for this card now that the waves from my last AOR are a thing of the past, and everything is back to normal with my credit file. I've already have a Discover for the 5% for gas, hence no much to look forward to by applying. Although I like Penfed, overall, they are not my primary source for banking.

This sucks, I've always used this for my general spending card. I applied for the 2% Schwab card but was denied. I suppose I could try to get the Fidelity AMEX, but I don't know if it's worth it since not everyone will take AMEX.

Perhaps at that time if my Chase Freedom is still giving the $50 bonus for accumulating $200 in rewards I will switch to that card since that is basically 1.25% CashBack, but I'll be taking a chance on if the $50 bonus will still be there.

Well, I wouldn't go so far as to stereotype all husbands, but in my case, when he needs to pay for gas, groceries, or other household items, he just grabs the card that I've given him for that purpose. He's a great guy, but impossible to train in this area. For the $50 in annual rewards I'm sure I'm missing, it's not worth it to fight it.

This change is now in the T&C (click the "View the Credit Card Summary of Terms"): Effective, February 1, 2010 all other net purchases receive 1%

Yeah, it does stink, and now I'll end up having to use (cough cough) another card for some things. Still, their customer service has been pretty much excellent, and sometimes THAT is worth more to me than the dangling carrot of a little more CashBack from the no-service megabanks.

TxAggieJen said: Well, I wouldn't go so far as to stereotype all husbands, but in my case, when he needs to pay for gas, groceries, or other household items, he just grabs the card that I've given him for that purpose. He's a great guy, but impossible to train in this area. For the $50 in annual rewards I'm sure I'm missing, it's not worth it to fight it. Sounds like your husband would make a great wife!

I am disappointed with PenFed. They did not have the best rewards in the world (1.25% vs 2%) but I appreciated that they did not "bait and switch" their rewards program like so many other cards. Their rewards program was fair and consistent. I have a very busy lifestyle. I do not have the time to be chasing the latest deal and changing my card every three month. My unspoken "contract" with PenFed was simple, if they keep their program "as is" then I will route EVERYTHING (e.g. insurance payments, utility bills, groceries, etc) through that card. If they change this, then I will be looking for another card to route EVERYTHING through. It is nothing personal... it is just "business."

I get more than 5% off gas. Buy gas cards over eBay with bing.com Cash Back and my 2% Cash Back card. No use for a 5% off gas card.

disappointing but don't really care about .25% honestly. To me it's a big plus they credit my statement each month with rewards. Still, I will look into Schwab but I'm tired of people not taking AMEX so I avoid them now.

FatMoneyClip said: I am disappointed with PenFed. They did not have the best rewards in the world (1.25% vs 2%) but I appreciated that they did not "bait and switch" their rewards program like so many other cards. Their rewards program was fair and consistent. I have a very busy lifestyle. I do not have the time to be chasing the latest deal and changing my card every three month. My unspoken "contract" with PenFed was simple, if they keep their program "as is" then I will route EVERYTHING (e.g. insurance payments, utility bills, groceries, etc) through that card. If they change this, then I will be looking for another card to route EVERYTHING through. It is nothing personal... it is just "business."

This really sucks - now I have to apply for The 2% Schwab Card - Maybe I will wait and see if they also reduce the reward %.
We had only 2 cards AMEX for Costco, Restaurant and Travel and this for everything else.

CPAESQ said: okwiater said: I like the PenFed card because it is wife-friendly. Although I personally play the reward games and keep a bunch of cards in my wallet, I like that the PenFed card is a "set-and-forget" for the wife's wallet. .

-lol- I agree with you 100% She comes back to me all the time and says "now what card should I be using for __?"

I can't wait until we reach the 6k threshold on the blue Cash Back card...so I can just say "use that for everything" (I like the extended warranty protection)


Hah - Hah ! Been going thru the same training with my wife. She would constantly ask "Which card do I use?". Must have been aggravating for her, but I explained we used multiple cards to optimize (maximize) the rewards we'd be earning. Eventually it all clicked, and now she'd more likely say "I used the Green CITI Forward card for our meal -- was that the right one?" (indeed it was).

To be fair, I am a whole lot less trainable, esp. in the areas of cooking & cleaning -- at least if I judge by my continual inability to meet her standards!

amandaw33 said: disappointing but don't really care about .25% honestly. To me it's a big plus they credit my statement each month with rewards. Still, I will look into Schwab but I'm tired of people not taking AMEX so I avoid them now.
The 2% Schwab is a Visa card. The 2% Fidelity card is an AM*X card.

Personally I am not too impressed by Penfed anyway. They approved me for a refi car loan, asked to be sent a payoff amount from Chase Auto, which we did, now so many days later they still are sitting on it. Asked what's up, now they want all the car info (again) the payoff (again) etc. what's up with that? Agravation. If it weren't for the good rate of 3.99 I'd say forgetabaoutit.

BTW, Do you have to have a Schwab account for the Schwab 2% back card?

Also, I am the one that tells my husband which card to use for what, go figure.

Skipping 40 Messages...
mikeg1 said: My Capital One Cash Back card (No Hassle Rewards?) lets me apply the Cash Back at any time to my statement. So I can spend $500 on June 1, apply the Cash Back on June 5, and then have the statement end with the reduced balance on June 30 (or whenever the closing date is).

But do you have to request it every time you want a payout or do you choose the monthly payout day once and then automatically receive it every month?



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