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 ...
We credit card anything and everything possible for the points and convenience of it. Then pay the bill off monthly and thus never get charged interest.
Another bennie is having a very high credit score by accruing bills like this and paying them off. My score is about 843, wife’s is 846 or something like that. The benefit here is low interest loans compared to those that represent high risk with a low score.
JPM made $8b this last quarter. This article is the only negative thing in the entire P&L.
Some of Chase’s credit cards also come with purchase protection, trip insurance, etc as well
Buried in an otherwise positive second-quarter earnings report Friday, in which the bank announced a record $8.32 billion profit,
...
Forget about that record profit.
Don’t use it as a credit card. Use it as a debit card. Never charge more than you can pay each month.
Benefits are 1.5% back on all purchases and quartly 5% cash back at different vendors. This quarter is 5% back on gasoline purches.
When you pay cash you are subsidizing CC users...like me...Thank you.
I don’t use them any more either.
Going a year since I got rid of mine and am doing OK.
Cash, debit card, or paypal pretty much everything.
If I buy on Amazon, I get gift cards for whatever amount.
*****I can pay with a credit card, get benefits from that, and pay the bill in full at no interest cost*****
No extra cost except your FREEDOM.
The whole point of these extra “perks” you are getting is to eventually enslave you to a cashless financial trap.
*****We credit card anything and everything possible for the points and convenience of it. Then pay the bill off monthly and thus never get charged interest.
Another bennie is having a very high credit score by accruing bills like this and paying them off. My score is about 843, wife’s is 846 or something like that. The benefit here is low interest loans compared to those that represent high risk with a low score.*****
Why do you think the banks have set up this system? They are doing whatever it takes to destroy the freedom that a cash financial system gives us. You act like this is a game with a “score” just like they want you to think. If you win you lose...
****When you pay cash you are subsidizing CC users...like me...Thank you****
When you are using Credit Cards for the “rewards” you are subsidizing your own entrapment.
This reminds me of when my job offered 6 hours leave time in lieu of pay as a budget cutting method. The staff took off more vacation time, this requiring more overtime. It cost them far more than if they had simply paid us for the 4 hours. They assumed we would simply bank the leave time and not use it. Wrong!
CC
****My purchases have protections that cash doesn’t give you. I get cash back rewards with a CC. At this time there is no reason not to have a CC****
Why do you think you are getting these “perks” from the Globalist Bankers? You should be fighting tooth and nail against them. There is NO REASON to enslave yourself to these control freaks.
Credit card companies drive the overall cost by only paying a percentage to the retailer for a guaranteed pay out. So everybody that uses credit cards drive the cost up and that’s a fact. as guilty as everyone else of using credit card to get hey percentage back on the deal But the truth of the matter is if I retailer would offer me a discount to pay cash I would. But the world is too stupid to understand this ends we get points cashback airline miles… To use a piece of plastic so someone else can scam money off the transaction.
I can fly around for free because of my AA mastercard.
First Class.
What on earth does that even mean?
What entrapment? I do not use my CCs for the credit they offer. I pay them in full every month. I pay NO INTEREST. Were I to carry a balance you would be correct, but I do not, so you're wrong.
I think I may understand the poster.
Credit Cards are not to be used as cash if you are not paying the balance in full every month.
There was a time in my life where a CC would be completely off limits. Cash only.
To say that it doesn’t work for those that can afford it is rubbish. I can go to Hawaii tomorrow for free, first class with beach resort if I wanted to.
You are helping to establish a “cash free world” by not using cash. If you have no understanding of how that will affect you, you need to understand how the Globalists plan to control you with “every transaction”.
Do you really think “cashless” will kick in?
My ass. Think long and hard about it.
The USA will burn down before that happens.
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