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Credit card super-users take a $330 million bite out of JP Morgan’s 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
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To: NRx

A $330m charge based on $8.32b in profit?

Boo-hoo, Chase.


61 posted on 07/13/2018 7:58:18 PM PDT by Kenny Bania (Ovaltine? Why not call it Roundtine?)
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To: Kenny Bania

Thats Gold Kenny, Gold. (pardon the pun)


62 posted on 07/13/2018 8:00:21 PM PDT by ResponseAbility (The truth of liberalism is the stupid can feel smart, the lazy entitled, and the immoral unashamed)
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To: ResponseAbility

Credit moves this world. How do you not see that?

Money moves in terms of volume and velocity.

Get in front of your finances if you can and make it work for you.

Your arguments are high school.


63 posted on 07/13/2018 8:01:27 PM PDT by eyedigress ((Old storm chaser from the west))
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To: NRx
I must be the last man on Earth who doesn't have a credit card.

You are not alone, FRiend.

I paid off and cancelled my last credit card in December 1999. My only bill is the mortgage and utilities. I even place money every month into a separate account so I can pay cash for new vehicles (new to me) when the old ones finally give up the ghost.

We had to get used to not buying something we wanted but now we can't envision ever having debt and it is so nice knowing that everything we have has been paid with no debt or interest. We may not have as many toys as some of our neighbors but I would rather know I owe no one.

64 posted on 07/13/2018 8:01:32 PM PDT by OldMissileer (Atlas, Titan, Minuteman, PK. Winners of the Cold War)
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To: Kenny Bania

Cutting in line I see.


65 posted on 07/13/2018 8:03:20 PM PDT by eyedigress ((Old storm chaser from the west))
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To: eyedigress

Credit enslaves this world to people who are now demanding a cashless society who want total control, how can you not see that?

I respect you as a FReeper, and hope you can get my point and understand why I think it is paramount that people understand what is going on.


66 posted on 07/13/2018 8:19:20 PM PDT by ResponseAbility (The truth of liberalism is the stupid can feel smart, the lazy entitled, and the immoral unashamed)
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To: ResponseAbility

I considered this aspect some years ago. It is a desirable outcome of the IRS.

It will not happen. The underground economy pays sales tax.

The underground economy is a very free group that can NEVER get credit from the banks.

The government knows this. That underground will destroy this country if they take away their barter. I know this and so do you.


67 posted on 07/13/2018 8:25:52 PM PDT by eyedigress ((Old storm chaser from the west))
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To: ResponseAbility

Think about the way things work out and why they work out.

It keeps the USA in a very wild and protected place. :^)


68 posted on 07/13/2018 8:29:12 PM PDT by eyedigress ((Old storm chaser from the west))
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To: eyedigress

****The government knows this. That underground will destroy this country if they take away their barter. I know this and so do you.****

Naivete raises its ugly head. If you think that the government is afraid of its people, just watch when it has complete economic control. Why do you think they want this and are moving towards this with your complicit acquiescence? You are a useful idiot, or are actively helping in that endeavor.


69 posted on 07/13/2018 8:37:44 PM PDT by ResponseAbility (The truth of liberalism is the stupid can feel smart, the lazy entitled, and the immoral unashamed)
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To: ResponseAbility

You are really going to expand on that endeavor you speak of.

JP is bitching about losing money. You have a theory of a cash-less society.

Provide your evidence.

(if it is Europe you lose 50 fr points)


70 posted on 07/13/2018 8:48:04 PM PDT by eyedigress ((Old storm chaser from the west))
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To: ResponseAbility

I have one other topic to bring up.

Do you know who the President of the USA is and do you understand he is not a NaZi?


71 posted on 07/13/2018 8:51:30 PM PDT by eyedigress ((Old storm chaser from the west))
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To: RegulatorCountry

I don’t rent cars but I have never had a problem with booking a hotel room using a debit card. Once in a while they put a hold on a security deposit or some such but rarely for longer than a few days. It doesn’t bother me.


72 posted on 07/13/2018 9:00:11 PM PDT by NRx (A man of integrity passes his father's civilization to his son, without selling it off to strangers.)
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To: eyedigress

*****Do you know who the President of the USA is and do you understand he is not a NaZi?*****

Why did you have to make such an ass of yourself, in public no less?


73 posted on 07/13/2018 11:21:15 PM PDT by ResponseAbility (The truth of liberalism is the stupid can feel smart, the lazy entitled, and the immoral unashamed)
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To: NRx
We use our credit card for about everything and write a single check each month to pay it off - we get about $400 - $500 in rewards each year and I just have it rolled in to go against a monthly bill.

Using it for items you would be purchasing anyway isn't the problem - it's those that use their cards as 'convenient loans" for stuff they can't afford to buy outright that become problematic.

74 posted on 07/14/2018 4:15:27 AM PDT by trebb (Too many "Conservatives" who think their opinions outweigh reality these days...)
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To: DoughtyOne

A credit card is a tool in your financial portfolio, but unfortunately many folks don’t use it as such. Yes, cash is king, but when CC offer issuers (banks) are offering cash back and 30 days of using their money for free, why not take advantage of that. I use my CC for every purchase, I get a cash back reward that gets me about $600 per year. I use the CC like I am spending cash - I get an email every time it is used.


75 posted on 07/14/2018 4:56:09 AM PDT by Cyclone59 (Common sense can solve a lot of issues when applied properly)
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To: Cyclone59

I’m doing the same thing.

Hey, go for it.

I don’t get cash back when I spend cash. I like getting some shekels back a couple of times per year.


76 posted on 07/14/2018 6:47:43 PM PDT by DoughtyOne (Take a look out there folks. Can you see evidence of a Left Wing Hate Group, perhaps fascist too?)
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