The end of the Disney Rewards Card program ???

[Goofy4TheWorld]

I have been reading several articles on the credit card industry reform bill working its way through Congress, and in every article's discussion on the impact to the credit card industry, two things keep getting repeated: 1) This bill makes annual fees likely for people who pay their balance off each month and 2) reward programs will be on the chopping block.

Both of these possibilities would really stink for me. Could the end really be near for the Disney Rewards program

[disneyboundagain]

I read a few articles that said the same thing. I am assuming that it is only a matter of time. Its a real shame that the people that are fiscally responsible are going to suffer because of those that aren't. The banks also didn't help the situation by giving credit cards to ANYONE, even including a few animals and deceased people.

[Marilyn Michetti]

I've been trying to "ball park" our rewards since getting the card. Our average for each trip since day 1 has been $250, so I figure they've given us around $1750 for flashing their plastic. We've never carried a balance, so from their point of view, we're "deadbeats".

It will probably happen, but I'll be darned if I'll EVER pay them to use a card. We'll just save more and put it in our vacation fund. BTW, Chase has a Freedom card that pays 3% in the top five catagories that you charge in, and it's cash.

We'll see..............

[brownie]

Merchants pay a per transaction fee and percentage, so you're still providing revenue (through the merchant) to the credit card companies even if you pay off your balance each month. I think some of what they are saying is hype and scare tactics.

We pay off our balance each month. If they are going to add annual fees and eliminate reward programs, we won't be using a credit card anymore.

This has not been passed into law yet, so until it does there's going to be a lot of speculation and the bill can change before it passes. I'll really worry about it when it passes and the changes get made. Until then, I'll keep earning my Disney reward dollars.

[DizneyRox]

I wouldn't be surprised. We've paid for a couple trips with our rewards, but I'll be darned if I pay an annual fee or interest on a credit card. So, yeah, we're deadbeats too.

Well, if the program stays the same, an annual fee ($20) wouldn't be horrible, as long as I'm pulling thousands in rewards back. Interest though, I won't be paying. I'll start to carry around cash again, makes no difference to me.

I understand the reasons, since credit cards are really an interest free loan for a month for us deadbeats.

It's funy though, they still get the merchant fees for people using the cards, but I'd guess those will probably be bumped up as well. You'll start to see more and more "cash discounts on services I bet!

[Goofster]

The whole idea is ridiculous, Banks make ridiculous amounts of money everytime you swipe the card (the merchant pays a percentage of the transaction to the bank for accepting the card usually 3-5%)...this in addition to interest rates ranging on balances as high as 19-30%. The credit card industry is very lucrative and for the banks to threaten to eliminate rewards programs and charge annual fees to "compensate" for the new legislation really shows how greedy these Banks are...being required by Congress not to increase interest rates at horrific levels for mundane reasons speaks volumes on this industry and its practices.

[Ian]

MODERATOR ALERT!

Guys be careful, okay? We're treading close to getting this thread off-topic, so let's stay focused on the subject at hand ... the possible end of the Disney Visa Rewards program.

[JRocker]

I tend to think that this is a scare tactic coming from the banks.
Rewards programs are used to entice customers to come to thier banks. Without that enticement, they lose customers.

I for one would not have a Chase account without the Disney Rewards, because of some of their practices.

When they bought the bank that I had a credit card with, they immediately lowered my available credit by several thousand. Without notification. This action shifted my account to the over limit pile. I paid several hundred to knock it below the limit BEFORE the next billing cycle. On my next statement I received a nice little charge for being over the limit. Two weeks later they suspended my account, why? Well, because of being over my credit limit.

These banks are now reaping what they sowed. People are mistaken if they think it is only the "deadbeats" that caused issues. (I have an excellent credit rating)

The banks have been using these questionable practices for years, they've been called out on it, and now they are trying to turn public opinion to their side saying that they are victims.

I don't believe they would cut the wound deeper by removing rewards programs. Without a doubt, they would lose customers in droves.

[princessgirls]

I've been trying to "ball park" our rewards since getting the card. Our average for each trip since day 1 has been $250, so I figure they've given us around $1750 for flashing their plastic. We've never carried a balance, so from their point of view, we're "deadbeats".

It will probably happen, but I'll be darned if I'll EVER pay them to use a card. We'll just save more and put it in our vacation fund. BTW, Chase has a Freedom card that pays 3% in the top five catagories that you charge in, and it's cash.

We'll see..............

Same here Marilyn! We usually average about $300 in reward dollars per trip to Disney, and we have never carried a balance. Free Money!!
However, the Disney rewards card isn't the best return I've ever seen in the reward dept. you have to spend a lot to earn.
Julie

[Lynn J Mc]

I'll be dumping the card if they dump the rewards also. Hopefully they will realize this and continue the program. I did hear today that the banks will be cancelling a lot of cards. I suppose that those of us who pay off monthly might be in that group. If so - it will be the debit card for me.

[Wayne]

I tend to believe that all of this talk is just a scare tactic on the part of the bank. Competition will not allow the rewards programs to end for the simple reason that people will flock to the competitor. I wouldn't worry.

[TheRustyScupper]

I wouldn't be surprised. We've paid for a couple trips with our rewards, but I'll be darned if I pay an annual fee or interest on a credit card.

1) We do have one card with an annual fee.
2) By paying $80/year, we amassed over 750,000 air miles through purchases.
3) We still have a 322,000 mileage balance.
4) Of course, we put almost EVERY purchase on the card, including groceries.
5) I thought the annual fee was worth this reward.
6) I guess one has to determine if paying fees fit with your spending habits.

[MarkC]

I agree with a couple of the other posters-- this is probably somewhat scare tactic, and there is enough competition that most credit cards will have to offer some form of incentive. It may be that only people with the best credit get the best offers, etc. Who knows.

I do believe that the companies will try to recoup some of their lost revenue, so there may be some options. For instance, you may have a $25 annual fee but a limit of $25,000 in purchase rewards, $50 fee for $50,000 in purchases, and so on. They can't take these programs away completely because people are used to them, and many people use Disney visa only because of that. So if too many people started dropping the cards, they would provide them some incentive to come back or entice new customers to join. We shall see......

[Itchy]

Hey Guy!

Take a deep breath and pause a moment.

I do not want to pay an annual fee or higher interest rate anymore than you do, but you need to remember that Disney and Chase are in a so called partnership in the Disney Chase card. So my guess is that as long as Disney's name is attached to the card they should have some say in the out come.

I see all of us who have the card as money in their pockets and a little in ours.

Lets wait and see..

[Ian]

I agree with a couple of the other posters-- this is probably somewhat scare tactic, and there is enough competition that most credit cards will have to offer some form of incentive. It may be that only people with the best credit get the best offers, etc. Who knows.

I do believe that the companies will try to recoup some of their lost revenue, so there may be some options. For instance, you may have a $25 annual fee but a limit of $25,000 in purchase rewards, $50 fee for $50,000 in purchases, and so on. They can't take these programs away completely because people are used to them, and many people use Disney visa only because of that. So if too many people started dropping the cards, they would provide them some incentive to come back or entice new customers to join. We shall see......

I think what you'll most likely see is that people that card companies really want to do business with (i.e. good credit risks) will get special cards that have rewards attached and folks with lower credit won't get them.

Credit card companies really don't want those kinds of customers anymore, so retaining them is of no interest.

[thrillme]

Personnally I'm getting annoyed with all the HELP we're supposedly getting I really can't afford it much anymore. Prior to this whole bill thing I never knew there was a problem with credit cards (I still don't believe there's much of a problem...those companies that even remotely gave me the slightest bit of static...I didn't have a problem canceling if necessary and going elsewhere)

I don't mind paying a SINGLE card's annual fee IF the reward is worth it.

IF Disney does away with it's "rewards" program and IF they stop offering "deals" for booking your trip with your card...then it will demoted to another "emergency" card (you know the second card you carry should you lose your primary card on a trip). IF Disney card starts charging the "annual fee" without REALLY good reward possibility...then I will cancel along with several other cards. I have no problem reverting back to a cash system. I have a feeling not all cards will opt to commit suicide.

Disney Rewards is for ME. It's my "reward" for being good. They get money from the retailer even IF I pay my balance off.

[Granny Jill A]

The problem with credit cards started with banks giving them to people who couldn't afford to make the payments. Just like the mortgage companies telling minimum wagers that they too could afford that $200 thousand dollar house. The banks kept upping the credit limit when the cardholders were only making minimum payments. That's like handing an alcoholic a beer. It worked for awhile, and then crash, boom! Everything fell apart, and now we who pay our bills on time and in full, have to pay the price.

[Disney Doll]

We're guilty. I use the card just for the rewards and we pay in full every month. If the reward goes away I'll be canceling my card. I'll look for other reward cards and if all are tightening up the reward system then I have no problem using my debit card instead.

[JabberJaws]

I highly doubt you will see the Disney rewards program going away. The Disney rewards program is not just an incentive to people for getting the card, like some cards's programs are (where you amass points that can be spent like cash in online stores for example). The rewards program is also a marketing tool for Disney. I mean think about it, any rewards money you amass HAS to be used for a Disney product. That is a marketing/revenue tie-in that Disney would not let die very easily.

Also, being that is the only "real" incentive to having a Disney Visa card, the Disney card would lose a HUGE amount of their users if they dropped the rewards program.

Finally, Disney has the partnership with chase on the card, and I don't know the terms of that partnership, but if Chase tried to strongarm them to have them end the rewards program or something along those lines, they could jump ship and start up a new partnership with a different bank.

Again though, like many have said, in the world of government, things change sometimes up until the second before they are "passed" so until this is final I wouldn't lose any sleep over it.

And even if they did all of a sudden drop the rewards program, they would HAVE to honor previous rewards dollars up until the drop date, so just cash in, cancel your card and head back to debit/cash!

[Dixie Springs]

Fellow "deadbeat" checking in. Amassed about $350 for this past trip. Nice perk, but if it goes away, so does the card for me.