Collabria cards to be nerfed on Jan 26 2021

Okay. So no cards can beat MBNA RWE now.
2% on everything when redeemed on travel and selected gift cards.

FFS

Why do the U.S. has no problem with multiple options for base 2% cards and up here we have almost nothing?

PhobMX wrote: ↑ FFS

Why do the U.S. has no problem with multiple options for base 2% cards and up here we have almost nothing?

Interchange fees are higher in the US than in Canada. An uncapped 2% card is not sustainable in Canada, the math simply doesn't work.

Since interchange fees end up in the price you pay for products and services, you are paying for your own cashback so in the end it doesn't really matter.

rhw123 wrote: ↑ Since interchange fees end up in the price you pay for products and services, you are paying for your own cashback so in the end it doesn't really matter.

So the losers are those that cannot, or do not pay for their purchases with a CC. Those that pay with a CC should be thankful to those paying with debit or cash for subsidizing their purchases; great system.

titaniumtux wrote: ↑ We all know pricing is based on many more variables than that...many things can be purchased for less in the US than in Canada despite the higher merchant fees.

That is besides the point. The part of the price that makes its way to the credit card issuer is the part that covers the interchange fee.

flyjazz wrote: ↑ So the losers are those that cannot, or do not pay for their purchases with a CC. Those that pay with a CC should be thankful to those paying with debit or cash for subsidizing their purchases; great system.

Correct. And to a lesser extent, those who use lower tier CCs (which have lower interchange fees and consequently lower rewards) also subsidize those who use higher tier CCs (which have higher interchange fees and consequently higher rewards). This is also why in Canada higher tier CCs have minimum income and/or annual spending requirements, this is a compromise the CC companies made to keep average interchange fees down.

rhw123 wrote: ↑ Correct. And to a lesser extent, those who use lower tier CCs (which have lower interchange fees and consequently lower rewards) also subsidize those who use higher tier CCs (which have higher interchange fees and consequently higher rewards). This is also why in Canada higher tier CCs have minimum income and/or annual spending requirements, this is a compromise the CC companies made to keep average interchange fees down.

Yep, classic case of the poor subsidizing the rich. Hey, I like my premium credit cards as much as the next RFDer, but I don't pretend not so see the unfairness of it all.

Kiraly wrote: ↑ Yep, classic case of the poor subsidizing the rich. Hey, I like my premium credit cards as much as the next RFDer, but I don't pretend not so see the unfairness of it all.

The only solution is to give those paying cash a discount as I've seen at some US gas stations for example. Don't know if those same gas stations would apply the discount to debit type transactions?

PhobMX wrote: ↑ FFS

Why do the U.S. has no problem with multiple options for base 2% cards and up here we have almost nothing?

Well, everyone wanted lower interchange fees here...

Alas, it was on borrowed time in the first place. A good excuse for me to re-evaluate my card usage. Personally most of my usage accepts Amex, so I can move most everything there to SCP. Come to think of it, most of the remaining is multiplier eligible on a few free cards these days.

Jon Lai wrote: ↑ Well, everyone wanted lower interchange fees here...

And we're getting them. (Though not nearly as low as many countries.) This is why Collabria and many other credit card issuers are devaluing their cards.

However, I'm not sure exactly when the lower interchange fees are taking effect. Visa and Mastercard delayed it because of Covid.

EdisonL299 wrote: ↑ Okay. So no cards can beat MBNA RWE now.
2% on everything when redeemed on travel and selected gift cards.

Until their devaluation.

This is why when my cap1 travel aspire got devalued, I didn't really jump on my next "keeper" card.

I got CT triangle WE but that was more for roadside and bill pay. Also got hsbc for the sign up bonus and FYF.

I think MBNA RWE will be devalued too. After all, it is owned by TD.

Still waiting to see what Muse offers.

I think it's safe to say that anyone still with the mindset of having a good enough "keeper" will be disappointed. Anything you find yourself feeling comfortable about will only be temporary - probably no more than 2 years. Might as well keep churning.

Jon Lai wrote: ↑ I think it's safe to say that anyone still with the mindset of having a good enough "keeper" will be disappointed. Anything you find yourself feeling comfortable about will only be temporary - probably no more than 2 years. Might as well keep churning.

Agreed completely. I did my due diligence and reviewed everything I could for my Cap1 replacement, but nothing wow’ed me.
In the end, I’m going to permanently keep one card that has decent rebates and a good warranty policy on purchases, for the 1 or 2 purchases I make in a year where I don’t want to lose the extended warranty.
The rest of the time, I’ll just churn WB’s and meet the minimum spends.

titaniumtux wrote: ↑ Even churning comes and goes. Can only do so many new apps, PS's, etc. Grab what works for you and churn when you can. Do both and get what you can... I don't anticipate any super exciting products to launch during the pandemic.

New AP cards should be coming this/next week

I guess it's the end of 1% back no fee cards and 2% back annual fee cards. Interchange rates are low and are getting lower with each year which means every bank is nerfing their cards. Brim will probably do the same and Home Trust too. Collabria is the biggest of the small issuers and if they can't afford this certainly Brim and Home Trust can't as well.

I usually use my AMEX card for purchases since it's 2% back on everything and their customer service is good, so I'm not very worried about this. However, it's annoying that they're also upping interest rates during a pandemic where we currently have the lowest BoC rates ever.

I don't think they're going to change the redemption rates, so each point is worth one cent still for cashback. It's just that you'll earn fewer points.

Also am I the only person who's sick of tiered cards? Just give me a flat rate, stopppppp.