Anonymous rumor/leak regarding new bank for credit card

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Michigan Mom

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Just received my latest statement. Paid more attention to some of the details :) So BoA definitely transfers over to Amtrak, 1 pt per dollar spend. However, on the AGR side, the bonus wasn't there. I called up Guest Services (have not done that in a while, long hold time) and asked why the bonus wasn't there. Apparently it's in the terms and conditions that it can take 8-12 weeks for Amtrak to issue the promotional credits, after the promotion period has expired. So I'll have to remember to watch for that.... remembering stuff not being my strongest suit. After I hung up the phone... called up the BoA number. Long wait time there, too. I asked about what the plans were for the AGR cards, how long BoA would be honoring the partnership with Amtrak, if there would be a replacement card if this product was discontinued.... well that only resulted in more hold time while she checked whatever, and came back to say she has no information. According to her, no rumors, no information, no plans by BoA to discontinue the current AGR cards. I shared with her some of the internet musings that say something quite opposite, but it was clear that she was not at liberty to comment even if she did know anything, which, she may not have.
We'll just have to wait and see.
 
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Michigan Mom wrote:
"This implies that Amtrak enthusiasts weren't using their cards enough for BoA."

Or perhaps most of us pay our balances in full most months, avoiding the interest charges, and making us less attractive to BOA.

I believe this may be the answer. Banks make their money from those with the worst credit and carry large balances. When interchange fees were limited several years ago by Dodd Frank banks' revenue took a major hit. Now they need customers who can't pay their full bill every month. With interest rates rising they will be in the cat bird's seat.
 

Joe from PA

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Michigan Mom wrote:




perhaps most of us pay our balances in full most months, avoiding the interest charges, and making us less attractive to BOA.

Like I do, to the tune of $2K.-$3.K a month. "Well traveled" often means "affluent". So far, we have gotten 2 free trips to Florida, one to Boston, and 17,000 points are still unused.
 

jebr

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When interchange fees were limited several years ago by Dodd Frank banks' revenue took a major hit.

That regulation only applies to debit cards, not credit cards. Merchant fees for credit card transactions are still unregulated, and the published rates for Visa appear to range between 1.5% and 2.5%. I don't know what Amtrak charges BoA for points, but my educated guess is that they probably charge a bit over a penny per point.

I doubt BoA is losing money on the card currently. It's possible that Amtrak is asking for a much higher cut, and BoA is stepping down because of that, but considering BoA has cut quite a few cobranded offerings BoA may simply be less aggressive in getting the contracts. After all, MLB has switched from BoA to Capital One, and I'm sure that's a more lucrative contract than Amtrak's.
 
Joined
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That regulation only applies to debit cards, not credit cards. Merchant fees for credit card transactions are still unregulated, and the published rates for Visa appear to range between 1.5% and 2.5%. I don't know what Amtrak charges BoA for points, but my educated guess is that they probably charge a bit over a penny per point.

I doubt BoA is losing money on the card currently. It's possible that Amtrak is asking for a much higher cut, and BoA is stepping down because of that, but considering BoA has cut quite a few cobranded offerings BoA may simply be less aggressive in getting the contracts. After all, MLB has switched from BoA to Capital One, and I'm sure that's a more lucrative contract than Amtrak's.

I stand corrected. My recollection was faulty and your analysis would appear to be solid.
 
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