I think they offer an annual gold membership for $50 for people who have their credit card. But I thought this could be something for people like Pattyb53 who charge large monthly business expenses to a card earning 2%.
The brokerage the cashback goes into also earns 5% APY (currently) so not a huge deal to have money in there until you transfer it out.
I think everyone wonders how sustainable it is. Maybe about the same way as BoA manages with their relationship cashback bumps. For RH, I think between the annual fee of $50 and the fact they get around 2.3% on purchases as issuer, they may keep it up for a while especially if they can get people to keep their money in their brokerage accounts.
The Paypal card seems to have two issues.I got it, and then Paypal froze my account the next day demanding additional documents for ID before I could use Paypal again. I was able to do this, but a heavy user of Paypal could be hurt by this unexpected freezing.
I also learned that payments of over $8000 did not free up your balance for about 20 days. Paypal could be used for US tax payments (nice to get 3% on, and exceeded the fees charged by processors). The Paypal giving fund route covers all fees on charitable donations which means you can earn 3% back. I make large charitable donations to the Foundational for Metabolic Cancer Research where this could be useful. Between taxes and these donations near year end, I hit my credit limit, and not being able to pay it back to quickly to free up the credit limit proved a problem.
The Robinhood card sounds good. I have been trying to open their brokerage accounts for weeks, and have found it very hard to meet their requirements which require pictures of ID (and not copies of a picture).
They have a very attractive bonus for those willing to hold millions in their brokerage accounts for a several years.
They can pay 5% on cash balances so having their Gold account could be valuable as a place to park idle cash. If you want their brokerage account the card sound like it could be very valuable.
I could imagine having substantial funds on deposit might make them willing to give higher limits. Their loan losses might be lower than average if they attract richer customers who have sufficient funds to pay much more than a reasonable limit on a credit card.
Robinhoodâs Credit Card Offers 3% Cash Back. Can It Last?
Hereâs the first thing to know about the new Robinhood credit cardthat promises 3 percent cash back on all purchases, without limits: Yesterday, when I asked Vlad Tenev, the companyâs chief executive, to guarantee that it would stay at that level for 18 months, he would not.
I hope it sticks. Itâs incredibly generous as these things go. Cash-back offers from big card issuers like Citibank generally top out at about 2 percent, and itâs hard to make money even at that level. Charles Schwab gave up on its 2 percent card in 2010.
The Robinhood Gold Card is the companyâs first credit card with its own branding. So what does it think it knows that nobody else does, and what exactly does it hope to accomplish?
There are several ways to make money with credit cards. The first is from fees merchants pay to accept them. The second is from interest when people carry a balance.
Then there are annual fees, which can be several hundred dollars for the most generous cards. Robinhoodâs card has no annual fee, though you must pay $5 per month or $50 per year to be part of the companyâs gold program, which offers better interest rates and other perks.
Any comments on the Wells Fargo Active Cash card or other cards. I recently opened a Premier Checking account to take advantage of a offer for bringing investments into their brokerage arm. What is attractive about this card is not its 2% rate, or its bonus, but a 15 month 0% interest on purchases. This could be attractive for college tuition payments, or other large expenses.
I discovered this on applying " We added an extra $100 cash rewards bonus to your intro offer for being a Premier Checking client."
My application was not approved for some reason (credit score is very high)
That is my experience also. I have not gotten approved for a Wells Fargo credit card despite my high FICO rating. I applied for and was approved by Bank of America for an additional unlimited cash reward card.
Except itâs not that simple, because the customer must agree to the total cost. So the register will either prompt the customer to select the correct variation (of which there are probably > 15 â 3 Visa, 3 MC, 3? AmEx, 1 Discover, plus credit vs debit), then ensure/enforce the correct selection at payment, or have the customer swipe their payment card first, then display the fee and request acceptance. Either way will be confusing to consumers and slow down the checkout process, so I doubt anything like that will be implemented.
That is also the situation now. When I check out the cashier scans off each item rapidly and the only way to keep track of the charge is to look on the register monitor. Most people have no idea what the price is for an individual item, and if thereâs a change why it occurs.
At many stores there are membership cards that get you discounts on individual items under conditions that you may or may not have satisfied. If you swipe your card late during the checkout process, prices can and do change. The same thing can happen when you use your credit card
You are wrong. It can be easily implemented and will be accepted, except by the few people like us who notice.
I didnât say anything about individual item cost or membership discounts, I said the customer must see and agree to the final total cost. If the payment type has an impact on the total cost, then it must be shown to the customer and the customer must agree to it before the charge is processed. It would add at least one extra step to the checkout process â the customer has to click Agree or Accept or something like that after swiping the card.
I think his point is that now, the discounts are applied, then you are given a total due that you pay. With this, youâd get that total, start to pay, and then the price will change again. Based on current processes, that price would change after youâve paid. Itâs essentially be the same as adding a âtipâ to the total bill, which you typically do after being charged for the bill, but in this case itâd be involuntary and unknown to the customer until after theyâve already paid it.
The only practical way this is implimented is how the tablet/app processors (Square, etc) automatically add a set percentage to customer bills.
I did a little arithmetic to compare the Bank of America 2.625% reward card to the Robin Hood 3% card. From the best I can tell the Robin Hood card has a five dollar per month fee. In that case, you have to spend $1333 per month extra on the Robin Hood card to break even with the Bank of America card
Youâre forgetting that the Robinhood card fee gets you $1000 of free margin. You can use that to buy a bond fund and easily come out ahead. There are gov bond funds that pay out 5% tax free such as BLE, NZF, and NVG.
That TPG ad is brought to you âIn partnership with the electronic payments coalitionâ.
Per Bloomberg: âElectronic Payments Coalition is a lobbyist group. The Company represents the interests of big banks, credit unions and payment card networks.â
From my reading of TPG articles I donât understand what the problem is. Itâll force big banks to offer the use of at least one network other than Visa and Mastercard, which to me just screams AmEx or Discover. It doesnât scream âless secureâ or âanother startupâ or âcheaperâ. The security of payments is already defined by industry standards (like PCI DSS) that I would expect all new and existing networks to comply with.