Chase launches new credit card with spending perks – but is it worth getting?

samal

Yes they have 

Olenna

WillPS said:

Olenna said:

barnehurst said:

Total waste of time! I'm an existing Chase account holder and took part in all the pre-launch surveys. I said there was one thing that would entice me to get a Chase Credit Card..

One thing that would lead me to stop using all my other cards
One thing of importance..

That thing was - 1% cashback on all purchases! Just like they used to offer on their now discredited and discarded debit card

And I'm still looking for a credit card that offers this!

So Chase, if youre reading this - go back to the drawing board and offer us the 1% cashback on ALL purchases!

Unless they launched on some exotic card network e.g. JCB then they'll receive a maximum of 0.3% of interchange income from purchases - so would need to run as loss leader like their UK debit card does even today. 

It wouldn't make a difference if they did. The legislation is drafted based on number of parties involved in the chain. If there are 5 parties or more (typically cardholder - merchant - acquiring bank - payment network - issuer) then the legislation applies.

The only way to avoid the legislation is to remove one of the 'parties'. Amex cards only have 4 parties since the payment network and issuer are one and the same, so are not in scope - however co-brands also count as a party so Nectar/BA/Marriott/Vitality/Harrods cards are still in scope.

JCB would have to launch a card themselves (and not cobrand it) to be exempt.

The UK legislation was drafted this way to included Amex which isn't a big player elsewhere in the EEA; it can easily be updated or bypassed by issuing a prepaid or business card. 

WillPS

Olenna said:

WillPS said:

Olenna said:

barnehurst said:

Total waste of time! I'm an existing Chase account holder and took part in all the pre-launch surveys. I said there was one thing that would entice me to get a Chase Credit Card..

One thing that would lead me to stop using all my other cards
One thing of importance..

That thing was - 1% cashback on all purchases! Just like they used to offer on their now discredited and discarded debit card

And I'm still looking for a credit card that offers this!

So Chase, if youre reading this - go back to the drawing board and offer us the 1% cashback on ALL purchases!

Unless they launched on some exotic card network e.g. JCB then they'll receive a maximum of 0.3% of interchange income from purchases - so would need to run as loss leader like their UK debit card does even today. 

It wouldn't make a difference if they did. The legislation is drafted based on number of parties involved in the chain. If there are 5 parties or more (typically cardholder - merchant - acquiring bank - payment network - issuer) then the legislation applies.

The only way to avoid the legislation is to remove one of the 'parties'. Amex cards only have 4 parties since the payment network and issuer are one and the same, so are not in scope - however co-brands also count as a party so Nectar/BA/Marriott/Vitality/Harrods cards are still in scope.

JCB would have to launch a card themselves (and not cobrand it) to be exempt.

The UK legislation was drafted this way to included Amex which isn't a big player elsewhere in the EEA

That as may be, the legislation would apply equally to an exotic card network as it does to Amex/Visa/Mastercard. 

Olenna said:

 it can easily be updated or bypassed by issuing a prepaid or business card. 

'easily' is a stretch - you're basically saying if you issued an entirely different category of product or targeted an entirely different category of customer to the exclusion of the other. I'm pretty sure the legislation already considers prepaid debit cards the same as regular debit cards and charge cards the same as credit cards but I could be mistaken.