Mint REMOVAL of Cashback

DaveK

Just to let other Mint Card users know, From August you won't be getting any cashback.

Time to switch and ditch, only thing is switch to which?

Any ideas?

peoplesrepublican

I phoned them to point out that unless they offer *something*, people are just going to close their accounts and get a cashback card with someone else. I said that unless they could offer me some incentive that is exactly what I would do, and the guy said there may be some kind of offer coming in a letter with my postal statement that I haven't received yet...we'll see.

I am gutted, I have been enjoying 1% CB with RBS Advanta, then Mint, for 5 years!

mancitychick

Got my mint statement today. Cashback removed. Cash advance interest changed to 17.8% APR.

The enclosed leaflet (no not the one encouraging me to take at a loan I don't need) says that...

"SOON there'll be some really great developments and improvments to our service which we'll tell you more about when they are intoduced."

No idea what they are though.

Clariman

mancitychick wrote:

Got my mint statement today. Cashback removed. Cash advance interest changed to 17.8% APR.

The enclosed leaflet (no not the one encouraging me to take at a loan I don't need) says that...

"SOON there'll be some really great developments and improvments to our service which we'll tell you more about when they are intoduced."

No idea what they are though.

Sounds like a teaser to encourage card holders not to cancel their cards following on the bad news about cashback. After a few months inertia will set in and people will forget their initial anger/disappointment. If they had some developments in the pipeline that were really going to make a difference, don't you think that they would announce them at the same time as the cashback removal ?

Clariman the cynic

Rafter

If you pay your balance in full each month and earn cashback, your credit company will be losing money on the account.

The amount the retailer pays to the credit card company each time you use the card is not enough to cover both the cashback and the card operating, fraud, processing, statement and other costs.

I imagine the new 'mint' benefits will be things like 'identity theft protection' and other features rather than any direct financial benefit.

Don't expect any card company to offer a long term cashback deal except perhaps on American Express branded cards where the amount retailers have to pay is higher and where there is less regulatory interest.

I guess mint would rather someone else had your business than continue to lose money on unprofitable accounts.

paulspenceley

Rafter wrote:

If you pay your balance in full each month and earn cashback, your credit company will be losing money on the account.

I'm not sure this is strictly true, although please correct me if I'm wrong.

I was under the impression that Visa & Mastercard charged merchants in the region of 2 to 3% on every transaction. If thay are paying the consumer 1% back, they would still be making at least 1% off these users.

mancitychick

paulspenceley wrote:

I'm not sure this is strictly true, although please correct me if I'm wrong.

I was under the impression that Visa & Mastercard charged merchants in the region of 2 to 3% on every transaction. If thay are paying the consumer 1% back, they would still be making at least 1% off these users.

I was under the impression they charged the retailers 1.5%

Rafter

The average is about 0.9% that finds its way to the bank, higher for some, lower for others depending on fraud risk and other factors.

0.9% doesn't go very far when you think about all the operating costs of an account including: billing, payment processing, card issue, security, fraud costs, regulation etc etc, plus the cost of lending money interest free between the transaction date and the payment date.

It is only because people in debt and using cards for borrowing are prepared to subsidise full payers, cashback and rate tarts that the current system doesn't collapse.

American Express charge retailers more so can find higher cashback.

In Australia they have reduced the retailer charges to 0.6%. As a result there are no cashback or reward cards in Australia and many cards have an annual fee.

R.

Chadsman

I would imagine that if a card is closed before any cashback earned has been paid that cashback would be lost
So dont close it in a fit of pique.
:beer:

charlie12

Disappointing. I hope they pay up any cashback currently accrued.

I was earning 0.5% on my Mint card so this is the perfect opportunity to cancel it and go with a 1% card

richardmk

Lloyds and Nectar have paired with American Express (they charge higher charge to retailer which covers cashback cost). So maybe there will be a MINT American Express card