home *** CD-ROM | disk | FTP | other *** search
- Newsgroups: misc.consumers
- Path: sparky!uunet!news.encore.com!mpalmer
- From: mpalmer@encore.com (Mike Palmer)
- Subject: Re: FORD visa vs. DISCOVER
- Organization: Encore Computer Corporation
- Date: Thu, 5 Nov 1992 13:41:05 GMT
- Message-ID: <Bx8woI.M5K@encore.com>
- References: <Bx5toA.rz@encore.com> <1992Nov3.224354.10489@magnus.acs.ohio-state.edu> <1992Nov3.173729.1@vaxb.acs.unt.edu> <1992Nov4.141930.20887@Princeton.EDU>
- Sender: news@encore.com (Usenet readnews user id)
- Nntp-Posting-Host: sysgem1.encore.com
- Lines: 39
-
- nfs@elan (Norbert Schlenker) writes:
-
- >In article <1992Nov3.173729.1@vaxb.acs.unt.edu> ff76@vaxb.acs.unt.edu writes:
- >>
- >>That's correct. I should have pointed that out. DISCOVER's cash back rates
- >>are tiered. The cash back rate for expenditures up to $1000is 0.25 percent.
- >>For the second $1000 it is 0.5 percent, for the third $1000 it is 0.75 percent.
- >>For expenditures over $3000, it is 1 percent...
- >>
- >>So for folks who pay off their monthly balances and charge over $3,000 a year,
- >>*DISCOVER pays a higher amount of cash back*. FORD visa pays 1.5 percent
- >>*only* when you carry forward a monthly balance. Then, it's not a cash back
- >>anymore (even if they call it that). It then becomes a minute rebate on the
- >>enormous interest rate typical of charge cards.
- >>
- >>Any disgreements?
-
- >Sure, I'll disagree. Am I the only one who has one of these cards?
- >Are you getting a commission on the issuance of Discover cards?
-
- >I quote from the Ford cardholder agreement:
-
- > "The annual rebate is earned by using the Card for purchases; it is not
- > earned for cash advances. ... In each anniversary year, the amount of
- > your annual rebate is:
-
- > - 1/2% of the first $1,000 of net purchases
- > - 3/4% of the second $1,000 of net purchases
- > - 1% of the third $1,000 of net purchases
- > - 1 1/2% of the amount of net purchases in excess of $3,000"
-
- >The rebate is uniformly better than Discover, for a card that is
- >useful at many more places. I confirmed these terms with customer
- >service at 800-638-FORD ten minutes ago.
-
- >Followups to misc.consumers only - this has nothing to do with investing.
-
- >Norbert
- >nfs@cs.princeton.edu
-