Tangerine Might De-Value Again? | Credit card reward programs | Discussion forum

Nehpets said

Maybe they can find a different way that doesn't require devaluation.

It seems that Rogers may have overcome the problem by offering 1.75% on all purchases, thereby eliminating specific categories that encourage card usage for only those premium categories. The disadvantage of the Rogers card , on the other hand, is the cashback is redeemable for Rogers purchases( cable, internet, cell phone etc)..unless the user wishes to wait for an annual cash redemption in January.

The U.S. has a history of several CC cards that offer quarterly rotating premium categories that pay 5% along with 1% or less for all other purchases. In recent years the premium categories have become more restricted such as paying for purchases for Uber or baby supplies, except during the final quarter when the categories usually include Amazon and/or wholesale club purchases.

One of the rotating U.S. CC institutions (Chase) offers a fixed rate card at 1.5% on all purchases, and Capital One offers 1% on all purchases and matches 1% when the card is paid in full each month, for a total of 2% on all purchases.

Canadian CC card institutions have been diluting added benefits such as various insurance benefits as a way to reduce costs.

It seems that by using a fixed rate cashback card at a slightly higher than base rate reduces the juggling of cards for categories and the aggravation of trying to remember what category is in currently in effect. The potential and perhaps doubtful additional benefit of premium categories, except for coincidental large dollar purchases, might well be outweighed by the aggravation of trying to figure out which card to use at every purchase.

Other factors that might influence a CC choice might be ease of payment (pre-authorized debit), various insurance add-ons, quality of customer service, cash back payment policy, and annual fee, if any.

In my view, judging a credit card simply on the rate of cash back may result in some unexpected surprises.

Stephen   

I've seen a few CCs with 4% on select categories i.e. Uber CC that you mentioned. Few others.

You might be interested in reading this recent post:
https://nationalpost.com/pmn/news-pmn/in-golden-age-of-branded-credit-cards-shoppers-cash-in

Talks about the golden age of branded credit cards in the USA.

How it's driving up competition down there.

The issue in Canada is the Co-Branded CCs are often slightly better or the same as bank offerings. For example, the previous RBC/ESSO Visa, Scotia Bank/More, and others.

Probably, the most competitive Co-Branded card in Canada was the PC MasterCard. At least I think it was Co-Branded with CIBC behind the scenes sort of. Might have not been a true Co-Branded card though.

It drove the no-fee World Elite evolution of other cards. Like Rogers. So, in some ways you would say innovation was created by Co-Branded Cards up here as well.

Rogers is succeeding and this might drive more competition.
As others see their base customers being hit by Rogers success. It is not a co-branded card.

Single Branded Cards are driving some invitation and competition. Like Rogers, HT Visa, Tangerine and others.

Tangerine increased competition as well. It's a good combo card. Like HT Visa as well.

Rogers is a main card that's the big difference. It is driving competition at a different level.