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Discover has (will per notice) boot all warehouse clubs which include Wal-mart AND Sam's out of their reward programs. We won't be able to count those purchases to determine our yearly up to 1%. I'm thinking of giving them up or over to another rewards card.. any suggestions?

Cherie
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No. of Recommendations: 1
How much do you spend at Walmart and Sam's annually? It isn't a significant loss for me. I will continue to use it for the 5% categories.

Debra
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Discover has (will per notice) boot all warehouse clubs which include Wal-mart AND Sam's out of their reward programs. We won't be able to count those purchases to determine our yearly up to 1%. I'm thinking of giving them up or over to another rewards card.. any suggestions?

I like the Citibank Dividend Platinum and the Citibank Preferred Rewards cards. The former is cash back, the latter is points toward gift cards, etc. Basic structure is 2% for gas, groceries, drugstores and utilities, straight 1% for everything else.

I only ever use my Discover card for their special 5% categories and for any other special offers they make (for instance, a while back I got a $1 cash back per transaction up to $20 deal-- I think I spent around $60 to get the $20 back). The tiered rewards system is little use to me since I can just get the straight percentage back on my other cards. Anyone got any idea why Discover still does things that way?
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Discover has (will per notice) boot all warehouse clubs which include Wal-mart AND Sam's out of their reward programs. We won't be able to count those purchases to determine our yearly up to 1%. I'm thinking of giving them up or over to another rewards card.. any suggestions?

I haven't seen the formal notice yet. Will they stop paying rewards on purchases at Sam's, or only stop counting those 0.25% purchases toward filling the tiers?

It makes little difference to me, because I don't use Discover at Sam's or Walmart anyway. I switched to using the Citi Dividends MasterCard when Sam's went back to taking MC and get 1% instead of 0.25% on my Sam's purchases. Of course, I still use Discover at the Sam's gas island to get my 5% there.

I see on the Discover web site that my Discover Gas Card is now a Discover Open Road card because they'll give me 5% back at places where I spend no money, in order to get me to use up the $1200 purchase limit on the 5% faster. No, thanks. At current gas prices, I probably can't get through a full card year before I have to switch to Citi to get 2% instead of getting Discover's 0.25% on gas purchases beyond $1200 in a year.

Discover's love of creating new, more complicated terms to make the rewards less valuable has got them on my inactive list before. If they gut the rewards for buying gas, Discover can go back to inactive status again.

Patzer
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The tiered rewards system is little use to me since I can just get the straight percentage back on my other cards. Anyone got any idea why Discover still does things that way?

Discover Marketing Guy: We're losing business to the competition because they don't make people wait through a 0.25% tier before paying a real cash back. We need to change something.

Discover Executroid: We can't afford to give up the tiers. It costs too much. Find another way to be competitive.

Discover Marketing Guy: How about if we offer 5% back on a limited amout of stuff but pack it with lots of conditions so we don't actually have to pay 5% on very much? Things like, change what purchases get the 5% every quarter, and make people sign up to get the 5%. If they don't sign up, they still get the cheapo tiered rewards. And just for laughs, we can advertise a 5% back gas card, but put a $1200 purchase limit so that we start paying 0.25% back on gas midway through the card year for most people. People are lazy, and we'll suck them into using Discover at 0.25% back because they're chasing that 5%.

Discover Executroid: Good work! Have a bonus!

Patzer
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My guess is that WalMart wrangled a lower merchant fee from Discover at the outset of that relationship.

Rather than pull out of WalMart and Sam's stores, (a black eye for Discover,) they're exiting through the back door this way.

If a lot of folks use Discover for their everyday purchases, then most of them probably won't pay much attention to this change, as their habit is already ingrained.

Only the intuitive will pay heed, and no business wants or needs customers they aren't making money from.


MadamHusker 1

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The tiered rewards system is little use to me since I can just get the straight percentage back on my other cards. Anyone got any idea why Discover still does things that way?

A few years ago they called and asked why I wasn't using the card and I told them I had other cards that offered 1% cash back so why waste time trying to build up enough in purchases to get to their 1% when other cards offered it right off the bat.

They told me they had a new card that started off at 1% and then dropped to a lower percentage (rather than having a limit on how much you could earn).

I took them up on it and had used it quite a bit. Then they sent the notice that they are going back to building up the tiers, so it is back out of the wallet again.


If I were a stockholder I'd be worried about how long it will take them to figure it out.
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Discover Marketing Guy: How about if we offer 5% back on a limited amout of stuff but pack it with lots of conditions so we don't actually have to pay 5% on very much? Things like, change what purchases get the 5% every quarter, and make people sign up to get the 5%. If they don't sign up, they still get the cheapo tiered rewards. And just for laughs, we can advertise a 5% back gas card, but put a $1200 purchase limit so that we start paying 0.25% back on gas midway through the card year for most people. People are lazy, and we'll suck them into using Discover at 0.25% back because they're chasing that 5%.

Discover Executroid: Good work! Have a bonus!


Yep, sounds about right. Though I do sign up for the 5% bonus every quarter, and make sure to use Discover for those things if we need them. Hey, we ended up buying a shed at Lowe's this spring. And we'll use Discover for gas in Q3.

I've also gotten calls from Discover over the years asking why I don't use them more and what they can do to make me their favorite credit card. I tell them that they can eliminate the tiers. Funny, that never goes over well.
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Sam's and Walmart are only counted at a .25% rate however they were still counting the purchases in the total tiers to get the bonuses. As of October per my online secure messages today these purchases will NOT be counted. .. Ah.. I know what I'm trying to write.. its just not sounding right!!

At any rate, I saw the ad for the Citi Card.. what Discover, doesn't want you to DISCOVER about CITI. catchy.. going to read the fine print and check to see what our citi cards are actually, since I'm THANKFULLY not using them for a Balance Tranfers any more .. ta da..

Amex 1,000 ( Squeezing to get paid off next month)
Ohmaha 8,200 @ 1.9% until paid

was once 22K!
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The changes don't have much impact. First, I don't spend an incredible amount in their stores for the reward to be significant. But, the other factor is that I already have a Mastercard and both stores accept Mastercard, so I'm already earning 1% on those purchases, where Discover at best matches at WalMart and four times what Discover provides as a reward at Sams Club.

- Lan
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