Free Republic
Browse · Search
News/Activism
Topics · Post Article

Skip to comments.

Credit card super-users take a $330 million bite out of JP Morganís revenue
CNBC ^ | 07-13-2018 | Hugh Son

Posted on 07/13/2018 4:39:07 PM PDT by NRx

Savvy credit-card users have forced J.P. Morgan Chase to pony up more in rewards payments than the bank originally projected.

Buried in an otherwise positive second-quarter earnings report Friday, in which the bank announced a record $8.32 billion profit, was the admission that credit-card customers were redeeming points faster than anticipated, resulting in a $330 million charge.

“This is maybe larger than we have seen over the course of the last several years,” said Marianne Lake, the chief financial officer, during a conference call with reporters. “We do pretty regularly review our rewards liability in light of evolving consumer behavior.”

Credit-card issuers scrambling to sign coveted high-spenders have sparked a rewards war in recent years. J.P. Morgan ratcheted up the competition in 2016 with its Sapphire Reserve card, which came with lavish perks including a 100,000-point signing bonus and triple rewards for travel and dining. The initial run of that card sapped quarterly profit by as much as $300 million, the bank said in December 2016.

(Excerpt) Read more at cnbc.com ...


TOPICS: Business/Economy
KEYWORDS: bankcards; creditcards
Navigation: use the links below to view more comments.
first 1-2021-4041-6061-76 next last
I must be the last man on Earth who doesn't have a credit card. To my mind credit is just another word for debt. Cash on the barrel head for me. If I can't pay for it on the spot, then I will live without until I can.
1 posted on 07/13/2018 4:39:07 PM PDT by NRx
[ Post Reply | Private Reply | View Replies]

To: NRx

I can pay with a credit card, get benefits from that, and pay the bill in full at no interest cost.


2 posted on 07/13/2018 4:40:34 PM PDT by FreedomPoster (Islam delenda est)
[ Post Reply | Private Reply | To 1 | View Replies]

To: NRx

Count me as a JPM Credit Card superuser. I get about ~$3000 worth of travel points on my Chase Sapphire Reserve card/year + Freedom card at 5x rotating cats (and transfer points to sapphire card) between my personal and work spend, and take advantage of the shopping portal for bonus points.


3 posted on 07/13/2018 4:41:30 PM PDT by rb22982
[ Post Reply | Private Reply | To 1 | View Replies]

To: NRx

You’ll save yourself a lot of money.

In most instances, credit is trap.

Looks pretty nice from the outside, and then they have you.


4 posted on 07/13/2018 4:41:51 PM PDT by DoughtyOne (Take a look out there folks. Can you see evidence of a Left Wing Hate Group, perhaps fascist too?)
[ Post Reply | Private Reply | To 1 | View Replies]

To: NRx

Yes. The card gives you a debt, not a credit, so it should be called a debt card.


5 posted on 07/13/2018 4:42:02 PM PDT by I want the USA back (Liberalism, like insanity, is the denial of reality.)
[ Post Reply | Private Reply | To 1 | View Replies]

To: FreedomPoster

Yup - no reason to pay interest on credit cards.


6 posted on 07/13/2018 4:42:10 PM PDT by rb22982
[ Post Reply | Private Reply | To 2 | View Replies]

To: NRx

“Cash on the barrel head for me. If I can’t pay for it on the spot, then I will live without until I can. “

We get 2% to 6% back on most purchases!

Suck on that!


7 posted on 07/13/2018 4:42:11 PM PDT by TexasGator (Z1)
[ Post Reply | Private Reply | To 1 | View Replies]

To: I want the USA back

Credit is the same thing as debt. And if you pay it off every month, there is no monthly interest or debt. You just get free stuff for shopping as you normally would (at least, for responsible people)


8 posted on 07/13/2018 4:43:05 PM PDT by rb22982
[ Post Reply | Private Reply | To 5 | View Replies]

To: I want the USA back

” The card gives you a debt, not a credit”

Mine gives me a 2% to 6% credit!


9 posted on 07/13/2018 4:43:56 PM PDT by TexasGator (Z1)
[ Post Reply | Private Reply | To 5 | View Replies]

To: I want the USA back

a : the balance in a person’s favor in an account
b : an amount or sum placed at a person’s disposal by a bank
c : the provision of money, goods, or services with the expectation of future payment long-term credit; also : money, goods, or services so provided They exhausted their credit.


10 posted on 07/13/2018 4:45:36 PM PDT by TexasGator (Z1)
[ Post Reply | Private Reply | To 5 | View Replies]

To: NRx

Ive had a few free trips to Europe with my Chase card...

Thanks JP ...

I pay the balance on the card each month so I never have any interest

:)


11 posted on 07/13/2018 4:45:58 PM PDT by Tennessee Nana
[ Post Reply | Private Reply | To 1 | View Replies]

To: NRx

“Straight Cash, Homey.”


12 posted on 07/13/2018 4:46:58 PM PDT by LiveFreeOrDie2001 ( Thank GOD Hillary didn't get elected!)
[ Post Reply | Private Reply | To 1 | View Replies]

To: NRx

Well, JPM offered me a 12 month 0% cash advance so I snapped up $9K that will save me about $350 elsewhere. I’ll shed no tears for JPM, thank you. My understanding is that they were given quite a bit of government largesse in the form of zero interest loans circa 2008 and for a decade have been able to borrow at near nothing, arguably at the expense of depositors who’ve eaned that same near nothing for that same decade.

In 2016, JPM stock was $53 and Jamie Dimon announced he was buying his stock. (easiest stock trade in recorded history) JPM stock is today $106, exactly double that, despite being down from $112-114.

Again, I shed no tears for JPMorgan.


13 posted on 07/13/2018 4:48:20 PM PDT by Attention Surplus Disorder (Apoplectic is where we want them)
[ Post Reply | Private Reply | To 1 | View Replies]

To: Tennessee Nana

Yep, I pay my CC bill 100% EVERY time.

Never a Penny of Interest.

Got > $200 cash back to redeem too. :-)


14 posted on 07/13/2018 4:48:22 PM PDT by LiveFreeOrDie2001 ( Thank GOD Hillary didn't get elected!)
[ Post Reply | Private Reply | To 11 | View Replies]

To: FreedomPoster
I can pay with a credit card, get benefits from that, and pay the bill in full at no interest cost.
Exactly. It's a fabulous convenience. I've had a single credit card since 1980 and never paid a penny in interest. And I've also got tens of thousands of "points" saved up at Chase. That'll be worth several $100 Amazon giftcards -- or some other goodies of my choosing.
15 posted on 07/13/2018 4:50:26 PM PDT by Blurb2350
[ Post Reply | Private Reply | To 2 | View Replies]

To: NRx

Mrs Spokeshave doesn’t believe in credit cards. ,buries the money in a tin can somewhere in the garden.


16 posted on 07/13/2018 4:51:27 PM PDT by spokeshave (recovering Spokeshave from another computer.)
[ Post Reply | Private Reply | To 1 | View Replies]

To: NRx

Gee, so they only made 8.02 profit for the quarter. They’re doomed.


17 posted on 07/13/2018 4:54:42 PM PDT by Robert DeLong
[ Post Reply | Private Reply | To 1 | View Replies]

To: spokeshave

http://www.wildboar.net/multilingual/easterneuropean/russian/literature/articles/whofinanced/whofinancedleninandtrotsky.html


18 posted on 07/13/2018 4:54:45 PM PDT by Original Lurker
[ Post Reply | Private Reply | To 16 | View Replies]

To: spokeshave

Get a credit card.
Use card to get metal detector from Amazon
Use metal detector to find cans
Pay off credit card immediately with money from cans so Mrs. Spokeshave doesn’t see money missing from bank account.
Blame the neighbors dog for holes in the garden.


19 posted on 07/13/2018 4:58:09 PM PDT by Roccus (When you talk to a politician...ANY politician...always say, "Remember Ceausescu")
[ Post Reply | Private Reply | To 16 | View Replies]

To: FreedomPoster

But then you don’t get the satisfaction of shaking your fist and saying “I pay cash on the nail for everything!”


20 posted on 07/13/2018 5:06:44 PM PDT by Larry Lucido
[ Post Reply | Private Reply | To 2 | View Replies]


Navigation: use the links below to view more comments.
first 1-2021-4041-6061-76 next last

Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.

Free Republic
Browse · Search
News/Activism
Topics · Post Article

FreeRepublic, LLC, PO BOX 9771, FRESNO, CA 93794
FreeRepublic.com is powered by software copyright 2000-2008 John Robinson