Chase Ends Debit Rewards Program

Put another nail in the coffin for debit card rewards. Chase is notifying customers that they will no longer be able to earn points after July 19. The points accrued up until then will not expire.

Chase had already closed off enrollment in the rewards program to new customers as of Feb. 8.

Background

Chase says it's ending the program because of a regulation that will sharply limit the fees it can collect from merchants whenever customers swipe their debit cards.

The cap on the debit swipe fees banks can collect was mandated last year under the financial overhaul known as the Dodd-Frank Act. The current proposal would cap fees at 12 cents per transaction, versus the current 1 percent to 2 percent of the transaction amount.

The banking industry says the change could slash its debit swipe fee revenue by as much as 90 percent.

A final rule is expected from the Federal Reserve by April 21, unless Congress delays the deadline. The rule will take effect three months later. That's also around the time Chase customers will stop earning debit rewards.

Bank of America, Citi and Wells Fargo say they haven't yet decided on any changes to their debit programs.

The Chase Program

Chase's debit rewards program was previously free and open to anyone with a checking account. Customers earned 1 point for every $5 spent, versus 1 point for every $1 spent with credit cards.

Customers could also pay a $25 annual fee to earn points at a faster rate – 4 points for every $5 spent.

The bank has 27 million checking accounts, but declined to say how many of those were enrolled in the program.

(This version CORRECTS Corrects annual fee to $25.)

Comments

[Tristian Armani]

04:21 PM on 03/24/2011

Chase Ends Debit Rewards Program.....Oil future prices rise!!LOL




Ok, that's my last oil joke. At this rate they might as me to become an official Speculator ,and thats just to much pressure!!

[Miss Muffett]

09:54 AM on 03/23/2011

Oh yes, by all means Chase, do whatever you have to do to keep your executive bonuses in the hundred millions. Lord forbid you go without a new yhatt this year. I mean, who do us consumers think you are? One of us?

[me again]

08:32 AM on 03/23/2011

Retailers were blind sided by these cards and were forced by the banks to pay for these programs with every transaction; no choice in the matter. Affinity cards are the same, a retailer has a set rate with their merchant services and the banks would take at times double that rate with these type cards. For small mail order companies, you have no idea whether the cards are affinity cards and these unfair penalty percentages are not small, especially if you have already discounted orders. IMHO, if a bank is going to lure a customer with a credit card, or debit card affinity program, they need to bear the entire burden themselves. It is not the retailers responsibility......another way banks have screwed their customers and thankfully the Democratic Congress took decisive action to eliminate this scam.

[Siebenstein]

06:15 AM on 03/23/2011

I don't care what Chase does. I wonder who would be with that g@ngst@ bank ,unless you are held h0st@ge with your mortgage.

Otherwise, why would you have those banksters manage your money?
Go to a Federal Credit Union.

[Miss Muffett]

09:55 AM on 03/23/2011

We refi'd and now Chase holds our mortgage. I'm tempted to spend the money to refi again just to get out from under these jerks.

[Siebenstein]

12:58 AM on 03/24/2011

I think Chase is THE worst bank in America, yet, nothing is happening to these banksters, while everybody talks about BofA.

[fortressfountain]

05:18 PM on 03/22/2011

Whether people have money or not they have a choice to not use the bogus cards-who needs a status symbol. Give me the green cash any day.
If enough people quit using the cards the banks would make no money.

[Kache]

03:30 PM on 03/22/2011

About time!

Remember the ad Chase ran of the couple where the woman spent their rewards on a dress while her husband was dreaming of the vacations they could have cashed in on? Well guess who bought her dress. It surely wasn't 3% of that couple's purchases. It surely wasn't the tooth fairy. That dress was paid for by higher prices at the checkout stand. Other consumers who did not qualify for such a rewards program bought that dress for her. Just one of the examples of "income redistribution" that funnels wealth into the upper brackets.

[VeritasVincit2]

07:28 PM on 03/22/2011

that was for a credit card not a debit

[Kache]

12:15 PM on 03/23/2011

If a debit card is used with the PIN number it does not go through the credit network, If it is used with a signature it goes through the credit network and the merchant is charged the extra fee to cover Jill's dress.

[me again]

08:33 AM on 03/23/2011

No, the retailers took it on the chin. The banks just charged the retailers each time one of these cards were used and walked away scott free.

[Kache]

12:16 PM on 03/23/2011

The retailers pass it on in higher prices.

[Kelly Jade]

09:32 AM on 03/22/2011

This is why I'll stick with 5th3rd. They're big enough that I can go around most of the midwest and find a bank, they pay my atm fees at other bank's atms, and they have great customer service. I couldn't care less if I don't get points.

[jokerdanny]

09:30 AM on 03/22/2011

good! reward cards are bullsh*t....rewards are freebies for the haves; i.e. they get more than they pay for; meanwhile, those at the bottom who are paying cash get only what they pay for; it's been that way for too long and it isn't fair

[RogerMurtaugh]

11:14 AM on 03/22/2011

Wah, it isn't fair that someone has more money than I do! Wahhhhh!

Grow up. If you can't handle the fact that there are incentives out there for people who have been more successful in life, then you are the one who has the issues.

[jokerdanny]

02:02 PM on 03/22/2011

i have money and i realize that there is no free lunch unless you have money; anything extra we get in a rewards programs means that those who have a credit card without rewards ultimately pay a higher interest rate and those who pay cash ultimately pay may for goods and services; it's a zero-sum game pal and you know it

[Kache]

03:32 PM on 03/22/2011

It isn't fair that Visa is transferring wealth from one segment of society to another.

[inthedesert]

09:24 AM on 03/22/2011

Oh, it's going to change Credit Unions also....trust me on this.......LOL.

[RichardinDelmar]

09:08 AM on 03/22/2011

Any credit card or debit card that offers points that can be used for merchandise should be ignored. There are cards out there that at least give cash back, but even that is a bad deal. Just keep to smaller fees, and let the merchants keep more, who, hopefully, in turn, will allow their customers to keep a little more.

[RavenLunatic]

05:41 AM on 03/22/2011

JP Morgan are once again on top if their game!! THANK YOU CHASE! You just gave me the violent shove I needed to close my accounts with you! Chase has become a nightmare for me over the past year, this doesn't surprise me at all. I think I'll bury my money in the yard from now on.

[Wicked Zen]

03:35 PM on 03/22/2011

Not that I disagree, but I find it interesting - considering your declaration that "Chase has become a nightmare" for you - that canceling a barely-noticeable debit card rewards program was the straw the broke the camel's back.

[me again]

08:35 AM on 03/23/2011

The retailers are happy....they are no longer getting screwed.

[nevernot]

05:05 PM on 03/22/2011

Very well said, now what was your address and work schedule again? ;)

[cyoohoos]

05:23 AM on 03/22/2011

I would never NEVER bank with Chase, JP Morgan, Wells Fargo, Bank Of America, or Citigroup. They are rip off artists.

Who would pay to buy points? It's essentially fake money. You're better off giving to a charity that will give you a trinket in return.

[dc8s]

12:54 PM on 03/22/2011

I don't understand all of the negative comments about Chase rip-off points. I have a business checking account and I get points. I don't pay a dime for my checking account. Perhaps there are fees for services that I don't use; however, it's obviously not an issue since I'm not using the services and they are not germain to my checking account or the way I do business. I've received merchant gift cards and other items just for using my check card, so I'm happy with the "rip off." I think people should research before blasting. Just sayin'.

[LuLou Murder]

04:40 AM on 03/22/2011

1-2 percent? What rewards card charged that little to merchants? When I was in retail, we'd get hit for up to 8% on rewards cards.

[me again]

08:35 AM on 03/23/2011

You are absolutely correct and thankfully Congress changed that situation last session!

[democrats for life]

04:23 AM on 03/22/2011

could this have something to do with the 15 billion dollars in defauted accounts they just wrote off?

[ACMSinc]

02:33 AM on 03/22/2011

surprise? after all the FRAUD-Closures that they have perpetrated and billions of dollars made on their Ponzi Scheme (like if that was not enough) they are ready to charge $5.00 for ATM transactions, and now also terminate their reward, whats next? think about it they will soon charge you to give them your own money (deposits)

[kilian69]

03:01 AM on 03/22/2011

Why do people put their money in banks anymore? Go with a Credit Union!

[inthedesert]

09:23 AM on 03/22/2011

This new law will affect CUs also. I have gotten several messages from my CU about this proposed new law and how to send emails to the appropriate persons in DC asking them to not pass this legislation. I have free checking with my CU and that will probably end if this law passes. Geithner is gonna get us one way or the other......LOL.

[vippy]

05:39 AM on 03/22/2011

You said it, stupid people will do the same thing over and over again no matter what.  No wonder we have the government we deserve and people want to vote for the same two crooked parties again.  Why did Obama even bother with the reform bill when he really did not change anything but make more ripoffs possible for the banks.