Discover More cardholders can now sign up for the 5% cash back bonus in April to June. The 5% bonus is available on up to $400 in purchases between April 1 and June 30 at stores in the following categories: department stores, clothing stores, home improvement stores and lawn and garden stores.
Hilton HHonors recently announced that it was allowing award redemption without blackout dates for all of its members. Previously this benefit, which guarantees that any standard room can be reserved with points as long as it is available, was only provided to its Diamond and Gold-level members.
As a consequence, this move makes the Hilton Amex an even stronger competitor with the Starwood Amex for hotel award redemptions. For transfers to airline programs, the SPG card is still far superior to Hilton’s, but there are many arguments to be made in favor of Hilton when it comes to hotel awards.
By lifting its restrictions on blackout dates, Hilton matches one of SPG’s major selling points. And with more than 2,900 Hilton Family hotels worldwide, compared with Starwood’s 860 or so, there are more than three times as many places where your points can be redeemed. The Hilton Amex also offers bonus points on everyday purchases, awarding 5 points for each dollar spent at supermarkets, drugstores, gas stations, and dining establishments, and 3 points everywhere else. In addition, it does not carry an annual fee, while the SPG Amex charges $45 after the first year.
All in all, there are points to be made in each card’s favor and much of it comes down to personal preference. For maximum flexibility, you could carry both cards, which is what I actually plan to do.
In the last quarter of 2007, the number of direct mail offers sent out by credit card issuers dropped 14% to 1.286 billion from nearly 1.502 billion in the same quarter of 2006, according to Mail Monitor, a direct mail monitoring service from Synovate.
Among issuers who sent out fewer mail offers were those focused primarily upon the subprime credit card market, such as Washington Mutual and HSBC, whose mailings decreased by 73% and 34%, respectively. Citi and Discover, issuers who were impacted by the subprime mortgage crisis, each also cut their mailings in half. These moves represent an effort to reduce exposure to further bad debt, according to Andrew Davidson, Vice President of Competitive Tracking Services for Synovate’s Financial Services Group.
In the meantime, other issuers have moved in to fill the void. Chase in particular has stepped up its direct mailings, increasing them by 62% in the latest quarter, so that now every one in four credit card mail offers sent out is by Chase. American Express, which also targets only prime customers, increased its mailings by 27%.
In addition, examination of direct mail offers show that issuers are tightening their terms. According to Davidson, 57% of households with incomes under $35,000 received an offer in Q4 2007, compared to 67% in Q4 2006. And despite the fact that the prime rate dropped by a point during the quarter, the single/go-to APR on variable rate offers increased to 13.96% versus 13.48% in Q4 2006.
Just when you thought they were going the way of the dodo, more no fee balance transfers offers have reappeared. Thanks to FW for spotting these recent finds from US Bank/Elan.
Personal cards with 0% APR on purchases and balance transfers for 12 months:
Business cards with 0% on purchases and balance transfers for 6 months:
According to the terms of these cards, in order to qualify for the no fee offer, balance transfers must be performed at the time of the application.
I have actually never shopped there, so I can’t personally comment about how big of a deal this is, but the folks at SD seem pretty excited that you can now apply for a Kohl’s credit card online.
With the Kohl’s charge card, you’re eligible for for extra discounts 12 times a year, as well as savings on sale and clearance-priced merchandise. There is no annual fee. If you are approved instantly online, you will be provided with your account number that you can begin to use immediately. (Current discount codes include MVCPICKADAY valid for 15% off until March 12, and MVC4242 for free shipping.)
The WaMu ESPN Total Access Visa card offers an intro 0% on purchases and balance transfers for 6 months with all BT fees waived for transfers performed within the first 90 days of account opening. Upon making your first purchase, you’ll also receive 2,500 points through the ESPN Total Access Rewards Program. Points can be redeemed for tickets and VIP access to sporting events, merchandise and collectibles, retail, dining and other travel rewards. 2,500 points is redeemable, for example, for a $25 gift card at the ESPN Shop.
Another benefit of the card is the free ESPN sports concierge service which helps you “buy hard-to-get tickets, arrange travel to sporting events, or create your own ultimate fan experience.”
For more details or to apply for the card, see this link.
For a very limited time, Vectra Bank/Zions Bank is offering 0% APR on purchases and balance transfers for 12 months with no fees. (Thanks FW.) This offer expires February 17, 2008 so you will need to act fast. After that date, expect the terms to revert to its normal 0% APR on purchases and balance transfers for 6 months with no fees.
SPECIAL INTRODUCTORY RATE – 0% APR FOR 12 MONTHS!
GET 0% APR ON PURCHASES AND BALANCE TRANSFERS FOR YOUR FIRST TWEVLE MONTHS, THEN A COMPETITIVE RATE THEREAFTER. PLUS, NO ANNUAL FEE AND ONE YEAR ONE YEAR MEMBERSHIP IN THE CONNECT ONE REWARDS PROGRAM FREE. HURRY OFFER EXPIRES FEBRUARY 17, 2008.
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Combine all of your credit card balances and make one easy payment with a Vectra Bank Colorado Balance Transfer. This no-fee service is smart, convenient and will save you valuable time in the future. Simply complete the Balance Transfer Request form and we’ll handle all the paperwork.
One interesting thing to note is that Vectra does not charge balance transfer fees, even outside of the introductory time frame, so it is not necessary to perform the BT at the time of the application if it is not convenient.
Those who have followed the recent credit card foreign transaction fee lawsuit and subsequent settlement are aware of the hidden costs of making a purchase in foreign currency. In the most common case, both the network (ie., Visa, MasterCard, Amex) and the card issuer will tack on a surcharge, usually totalling 1-3%, to every overseas transaction. (For a full table of these fees by issuer, see the FlyerTalk Wiki.)
Amex vs. Visa / Mastercard
I recently decided to perform a mini experiment to explore a little publicized aspect of making purchases in foreign currency–namely, to discover the difference, if any, between the underlying exchange rate used by American Express and that of Visa/Mastercard.
The experiment
In the past, I had heard that Amex used inferior exchange rates, so to test that theory I set up an admittedly imperfect experiment, pitting my Starwood American Express against my Chase Visa.
Last week, I ran a series of charges against each card. On Jan. 28, I charged 25 British pounds on each card, with each charge coming within minutes of one another. I repeated this again on Jan. 30 and Feb. 1. In theory, the Starwood Amex with its 2% forex fee should beat the Chase Visa with its overall 3% forex fee (1% from Visa + 2% from Chase), assuming that their underlying exchange rates were comparable.
The results
Unfortunately this test didn’t yield the information that I was hoping for. For one thing, I found that while Amex processed each transaction on the day that it occurred, Visa took until the next day, meaning that I couldn’t directly compare the exchange rates.
When I tried to calculate the foreign exchange fee using the average daily Interbank rate, as quoted by Oanda.com, I got the following results:
| Date Charged | Amount Charged | Card | Date Processed | Charge in dollars | Interbank rate* | Fee |
|---|---|---|---|---|---|---|
| 1/28 | 25 GBP | Amex | 1/28 | $50.71 | 1.98370 | 2.3% |
| 1/28 | 25 GBP | Chase | 1/29 | $51.21 | 1.98190 | 3.4% |
| 1/30 | 25 GBP | Amex | 1/30 | $50.88 | 1.98640 | 2.5% |
| 1/30 | 25 GBP | Chase | 1/31 | $51.24 | 1.990 | 3.0% |
| 2/1 | 25 GBP | Amex | 2/1 | $50.87 | 1.99830 | 1.8% |
| 2/1 | 25 GBP | Chase | 2/2 | $50.73 | 1.98490 | 2.2% |
Further Research
Since these results weren’t exactly what I was expecting, I did a bit more research and found some information that helps explain why I didn’t get nice, round numbers. American Express describes how it determines its conversion rate in the fine print of your billing statement:
If you incur a Charge in a foreign currency, it will be converted into US dollars on the date it is processed by us or our agents. Unless a particular rate is required by applicable law, we will choose a conversion rate that is acceptable to us for that date. Currently, the conversion rate we use for a Charge in a foreign currency is no greater than (a) the highest official conversion rate published by a government agency, or (b) the highest interbank conversion rate identified by us from customary banking sources, on the conversion date or the prior business day, in each instance is increased by 2%. This conversion rate may differ from rates in effect on the date of your charge.
Visa also explains how it handles foreign currency transactions:
Will the rates shown be the rates charged to my account?
The exact rate you receive depends on when the transaction is posted to the Visa system. The day the charge actually posts may be later than the day on which you made the purchase, depending on how promptly each merchant handles their Visa transactions.
How does Visa calculate its rate?
Every day—except weekends, Memorial Day, Christmas Day and New Year’s Day—Visa calculates the rate for the next day’s transactions. The Visa rate is selected from a range of rates available in wholesale currency markets or the government-mandated rate in effect one day prior to the applicable central processing date. Visa makes this rate available to issuing banks, which may adjust the rate when billing cardholders by applying a foreign transaction fee. The rate Visa makes available to issuing banks may vary from the rate Visa itself receives. Most consumers find that using Visa is a convenient and cost-effective way to make purchases and obtain cash when traveling internationally.
How accurate are the rates?
The rates you are shown are generated with Visa’s internal database for exchange rates and are accurate to two decimal places. However, they are only meant to serve as an indication of the rate you could expect to receive from your issuing bank. As exchange rates change constantly, the rate is only accurate for one day. The exact rate you are charged depends on when the transaction is posted to the Visa system, which may be later than the day on which you paid, depending on how promptly each merchant handles their Visa transactions. Additionally, your final transaction amount may differ depending on whether the merchant converts the currency at the point of sale or if the bank that issues your card assesses a foreign transaction fee.
My conclusion?
Based on this information, I learned that a direct comparison of exchange rates will always be difficult given how much latitude the networks have afforded themselves in determining the conversion rate, especially with regards to the timing of the transaction. From a practical standpoint, it’s more important to look at the other components of foreign currency fees rather than the underlying exchange rate.
Instead, focus on the fees that are documented and well-defined. See the table below for a summary of these fees for major issuers:
| Issuer | Total Foreign Currency Fee |
|---|---|
| Amex | 2% |
| Cap One | 0% |
| Citi | 3% |
| Chase | 3% |
| Discover | 0% |
| FIA | 3% |
| HSBC | 3% |
The Associated Bank Visa Platinum is a co-branded Citi credit card offering what is an increasing rarity these days: an intro 0% balance transfer for 12 months with no fees. As with most Citi balance transfer offers, you have 12 months from the date of account opening to perform the intro transfer. However, given how fast the no fee offers are disappearing, should you apply for the card, it probably wouldn’t be wise to wait that long.
Please note: This offer has expired. Please click here to see a full list of balance transfer offers.
According to FW, all Costco Amex cardmembers will begin receiving 3% rebates on gas in February:
Got this from costco magazine Feb 2008.
“Beginning this month, members with the cards begin receiving 3 percent cash back on gas purchases! These include gas purchases from Costco gas stations and stand-alone stations (such as Chevron or Shell stations that are not part of a retail or grocery chain).”
Previously, the Personal version of the card offered only the standard 1% rebate on gas, along with a 3% rebate at restaurants, 2% on travel and 1% on everything else.
Edit 1/31: I just confirmed with Amex Customer Service that the Business version will not be changing and will retain its 5% rebate on gas. Further, the Personal version of the card will begin to receive 3% on gas starting February 11. You can view the actual ad in Costco magazine here.