Aren’t you making a bunch of money while everyone else is losing their shirts?
Airlines to public. “You give us money. We don’t give you money.”
I’m not terribly surprised airlines and hotels have stopped cash redemptions for points. They are two of the hardest hit industries right now and it makes sense they want to keep cash in hand during one of their most trying times. That said, I hope they do continue to allow cash redemptions in the future after this all passes.
Airlines like SW and Delta will not likely go bankrupt due to government bailouts if need be. I’m fine keeping my points stashed for later and redeem at future value because it’s still way more valuable than cashing out. Eventually I will need to book a flight next year or the year after.
Local businesses (especially restaurants) are pushing gift card sales right now, for cash to cover ongoing expenses. This scares me - not knowing how long this is going to last, a lot of those businesses may not exist once I’m ready to use the gift card.
Big businesses are virtually ensured of maintaining their rewards/benefits to some degree; they may alter your options and devalue, but the points and gift cards will still be there. It’s the smaller/local businesses you should be reluctant to let them hold any value for you.
Our gym closed due to the state mandate. They’re offering to refund the value of the monthly membership fee or provide a 125% gift card for the amount.
That’s not bad. Some are simply keeping your money and saying they’ll extend your membership by the equivalent time they were forced to remain closed.
Some preschools and day cares and “weekly class” type activities are just keeping the money, and continuing to charge the monthly fee. You can stop by withdrawing, but would then need to go through the process of enrolling again.
At the rates my daycare/preschool were charging, skipping a couple of weeks was virtually worth re-enrolling. But good example of a nasty situation all around. Day care cannot keep paying its care givers without charging parents or taking loans. And if demand is very high for the best places, they know parents won’t withdraw for fear of not having a spot when things return to normal.
This is why unemployment benefit boost and help for small business owners was so badly needed.
Sure - so these day cares can keep charging their clients while the government reimburses them for their operating expenses…
The first two comments suggest that CapOne could be having liquidity issues due to oil & gas commodity swaps exposure ballooning after the oil price drop. It could also be because GC fulfillment is non-essential.