AGR Credit Card change (October 2022)

[jebr]

I was referring to bank cards earning 3x points that you can then transfer to the carrier of your choice or use for other travel or cash back. Amtrak competes against all cards in that regard and not just those that are carrier-specific.

I still think it makes more sense to compare them to what's offered for cobranded cards, versus large bank cards with transferable currencies. The cobranded cards are meant to build loyalty, not just maximize points earnings, and offer many carrier-specific benefits that the bank cards with transferable currencies don't. Particularly in the ~$99 range, the options are basically cards that will offer a bit better earning rates plus the option to transfer, or the carrier-specific card with a bit weaker earning but helpful perks when traveling. There's also the TQP boost for those who value that.

I think Amtrak's better strategy would be to see about partnering up with a bank or two to be added to their transfer partner base, rather than try and fit too much into a cobranded card. I wouldn't be surprised if the transition to FNBO might enable that - I could see Amtrak wanting to get rid of a "non-compete" clause so that they can cash in on transfers from multiple large card issuers. There's almost certainly money to be made there, and might get people interested in taking Amtrak that otherwise wouldn't have considered it.

 

[joelkfla]

I was referring to bank cards earning 3x points that you can then transfer to the carrier of your choice or use for other travel or cash back. Amtrak competes against all cards in that regard and not just those that are carrier-specific. I think that giving people unlimited lounge access would definitely require that a ticket for same-day travel/arrival be purchased, since you can simply walk into an Amtrak lounge within having been through security.

Are you taking into account the fact that AGR points are worth between 2 and 2.5 cents (varying by fare class and other eligible discounts), whereas cashback is generally worth 1 cent?

 

[MARC Rider]

Note that they don't show any limit on accrual of TQP given at the rate of 1,000 TQP for $5,000 spend. (This is for the fee card.) The current card limits you to 4,000 TQP a year on the first $20,000 of card spend. If this is true (and I suspect there may be an oversight here), then I could spend the usual $40,000 a year or so I spend on credit cards and get 8,000 TQP, making it a whole lot easier to qualify for Select Plus. Even the 4,000 TQP makes it easier for me to reach Select Plus. This is advantageous for me, given that I travel a lot through Washington, Philadelphia, New York, and Boston not in sleepers, so the lounge access is a real benefit. The extra one-class upgrade coupons are nice, too, as I can use them for Acela First Class, each one being worth $100 to $150, sometimes more depending on the fare spread between Acela First and Acela Business.

 

[jebr]

Are you taking into account the fact that AGR points are worth between 2 and 2.5 cents (varying by fare class and other eligible discounts), whereas cashback is generally worth 1 cent?

Some credit cards offer the ability to transfer points into other programs instead of strictly use them for cash back. For example, I have the Capital One Venture X, and I can transfer those points to different airlines or hotels. I've transferred my Capital One points over to Virgin Red and booked a trip through their partnerships over to Europe for 15,000 points each way/30,000 round trip - where a similar flight on any airline from MSP is easily $600+, and often doesn't include a checked bag (whereas the points booking does.)

 

[dlagrua]

Received an envelope with new Amtrak Guest Rewards info today that introduced the Guest Rewards Preferred
Mastercard at the yearly fee of $99. Pretty much what we had with B of A -3 pts on Amtrak purchases but now 2 points on all travel related stuff. What is unclear is that they specify 1 point everything else on "qualifying purchases" whatever that means. Didn't see anything that they include car rental coverage. It said that new credit cards will be sent and to use them beginning Oct 23rd.

 

[Ryan]

Thank you for confirming what the rest of us have been discussing for the last three pages. You may want to read up on them and catch up.

 

[AmtrakBlue]

BTW, the fee card is a World Mastercard. There's a sheet in the envelope addressing those benefits.

 

[TheVig]

The travel category is lot more broad on the new AF card compared to the old.

 

[Railfan1983]

Very wonky concern...but I wonder what effect this'll have on AGR cardholders' FICO (credit) scores? One major factor in the score is age or duration of account. Having owned a card for a long time and paid it faithfully is a plus; opening a new account is a minus, as is closing a longstanding account. If the new Bank of Omaha card is treated as a continuation of the old, good. Ditto whatever non-branded Mastercard BoA may switch us to. Otherwise, this seems like an unfair hit that might affect holders' mortgage quotes, insurance premiums, rental applications, all kinds of things that probably shouldn't use FICO scores but do.

To me this sounds like an even hand off, the only thing that will change on a credit report will be the owner of said debt. Much like when your mortgage gets sold to a new loan holder, nothing on the report changes except the name of the debt holder.

 

[Old MM]

Well... now we now know why BoA was not being forthcoming with new information (and still are not). It wasn't their decision, and they certainly didn't want to panic cardholders and have them stop using the card prematurely, or even cancel the accounts altogether.
From the bank side, it's a no-brainer. They collect fees, not just the membership fee on the paid card, but whatever the percentage is they get from every purchase. From there the points are transferred to Amtrak, who does all the work administering the rewards side. (We had some related discussion on this, or on another thread, about who awarded "bonus" points and I was of the opinion that was on the Amtrak side).
Wondering about what is up for negotiation... we know the banks take a cut of every charge, but what about their partners? Does Amtrak get a better deal with the new bank? Hope so.

 

[TheVig]

Well... now we now know why BoA was not being forthcoming with new information (and still are not). It wasn't their decision, and they certainly didn't want to panic cardholders and have them stop using the card prematurely, or even cancel the accounts altogether.
From the bank side, it's a no-brainer. They collect fees, not just the membership fee on the paid card, but whatever the percentage is they get from every purchase. From there the points are transferred to Amtrak, who does all the work administering the rewards side. (We had some related discussion on this, or on another thread, about who awarded "bonus" points and I was of the opinion that was on the Amtrak side).
Wondering about what is up for negotiation... we know the banks take a cut of every charge, but what about their partners? Does Amtrak get a better deal with the new bank? Hope so.

Both Amtrak and the bank make money.

BofA is also making money on this deal to some degree. Since us existing card holders are getting moved to FNBO, along with our existing credit lines, means FNBO paid BofA for the portfolio of current card holders. So like it or not, some thanks are due to BofA for willing to sell. They could have refused, and that would left the new bank with the task of rebuilding the card base from scratch, and Amtrak crossing their fingers, hoping for large numbers of new card approvals.

 

[Joe from PA]

My card does not have a yearly fee. Why do some cards have a fee?

 

[fhussain44]

What will be signup bonus with this new card? And any speculation if it will be churnable like the BA one?

 

[TinCan782]

My card does not have a yearly fee. Why do some cards have a fee?

There two cards, one with a fee and one without a fee. The fee card provides better benefits (points earnings, etc.).

 

[TinCan782]

What will be signup bonus with this new card? And any speculation if it will be churnable like the BA one?

Right now, existing card holders are being converted to the new card. effective October 23. No sign-up (application) required. The mailing you see discussed above is for existing cardholders.
It is unknown what will be offered when new applications are being accepted.

 

[Old MM]

Both Amtrak and the bank make money.

BofA is also making money on this deal to some degree. Since us existing card holders are getting moved to FNBO, along with our existing credit lines, means FNBO paid BofA for the portfolio of current card holders. So like it or not, some thanks are due to BofA for willing to sell. They could have refused, and that would left the new bank with the task of rebuilding the card base from scratch, and Amtrak crossing their fingers, hoping for large numbers of new card approvals.

Hard to say if they could have refused, or if, in the event they did, for how long. It depends on the terms of whatever agreement they had. Maybe it was for a set number of years, maybe reviewable annually, maybe it could be terminated by either side with XX notice to the other side, etc. I can't imagine that these and other terms were not spelled out in the contract, those legal departments have to earn a living ya know.

 

[TC_NYC]

Side by side comparison
No-Fee card on left, fee card on right

View attachment 29581

I think this is a big change for the lounge passes. Previously the lounge pass was just for signing up for the card, it appears now that the card will get a lounge pass on every anniversary, a big upgrade given the new lounge at NYP.

 

[pennyk]

I have yet to received the packet from AGR announcing the new card that many members received in the last 2 days. I have the fee card with a closing date of yesterday. Anyone else with the fee card not receive a packet yet?

 

[jis]

I have yet to received the packet from AGR announcing the new card that many members received in the last 2 days. I have the fee card with a closing date of yesterday. Anyone else with the fee card not receive a packet yet?

I haven't seen mine yet, but it may very well be sitting in my PO Box which I have not checked in a few days.

 

[TinCan782]

I haven't seen mine yet, but it may very well be sitting in my PO Box which I have not checked in a few days.

Haven't seen mine yet either. Not in today's (9/8) "Informed Delivery".

 

[TinCan782]

I have yet to received the packet from AGR announcing the new card that many members received in the last 2 days. I have the fee card with a closing date of yesterday. Anyone else with the fee card not receive a packet yet?

Haven't seen mine yet either. Not in today's (9/8) "Informed Delivery".

 

[pennyk]

Haven't seen mine yet either. Not in today's (9/8) "Informed Delivery".

Thanks for your reply. I do not feel so left out yet.

 

[joelkfla]

I have yet to received the packet from AGR announcing the new card that many members received in the last 2 days. I have the fee card with a closing date of yesterday. Anyone else with the fee card not receive a packet yet?

Me too. It's not unusual for mass mailings to be sent out over a period of several days. Often, there's no apparent logic behind whose gets sent first.

 

[MARC Rider]

I have yet to received the packet from AGR announcing the new card that many members received in the last 2 days. I have the fee card with a closing date of yesterday. Anyone else with the fee card not receive a packet yet?

I got my packet announcing the new card. By the way, my fee on the existing card posted in August.

 

[Barb Stout]

Have any of you who have received the letter about the FNBO card have only the no-fee card? I ask this because my sister has the fee card and got the letter and I have the no-fee card and have not gotten a letter. It is not clear to me reading this thread if anyone who has only the no-fee card has received the letter. I am wondering if I should, in the meantime, switch to a credit card where I get points with a certain hotel chain.