Penfeds 5% Gas Card Changing, Chance To Make $250

RJM | Dec 30, 2011 | 499 posts since 2011

Those of us with the 5% cashback card are being pushed to switch to a different deal. They are going to a point system with 5 points for Gas, 3 for supermarkets and 1 for everything else. (ONLY if you opt for the new deal, you dont have to, but you lose out on the $50-250 worth of points if you do)

The special offer is, 5000 points for your first purchase after your first billing cycle following feb 1.

And another 20,000 points when you spend $1000 within the first 3 months.

It says thats enough for a $250 giftcard or other stuff.

If you dont switch, you stay on the 5% cashback but your other purchases falls to .25%.

Must call or go online to switch. I was told the deadline to signup for the bonus points deal is 1/28.

More details on the points coming in the next few to 6 weeks.

++++++++++++++

Because you are a valued Visa Platinum Cash cardholder, we invite you to accelerate your rewards with the new PenFed Platinum Rewards card. This new Visa card delivers more ways to earn and use rewards than any other PenFed credit card??_:

5 points

per dollar spent on gas purchases

3 points

per dollar spent on supermarket purchases

1 point

per dollar spent on all other purchases

The points you earn can easily be redeemed online for merchandise, travel, gift cards, or even Visa prepaid cards—which can be used like cash anywhere Visa is accepted. You will receive more information about tracking and redeeming your points once your switch becomes effective in February.

Switching from Cash to Points is Easy

We made it easy for you to switch from the Visa Platinum Cash card to the PenFed Platinum Rewards card. There is no application necessary, your rates will stay the same, and you can continue to use your existing card plastic. Simply fill out the information requested on the side and click the "Submit" button and you will automatically begin earning points with every purchase at the start of your first billing cycle after February 1. Until then, you will continue to earn cash back.

Special, Limited Time Offer

Plus, you can jumpstart your rewards by earning 5,000 points the very first time you use your card and another 20,000 points when you spend $1,000 within the first 3 months. That's $250 that you can use toward merchandise, gift cards, and other rewards. Or, you can use your points for other easy-to-redeem rewards, such as merchandise, gift cards, or travel.

Pentagon Federal Credit Union (This Penfed webpage is no longer available)

4

Answers

pearlbrown | Jan 1, 2012 | 2,298 posts since 2010

I also use the 5% cashback card strictly for gas at Sam's.  Based on my gas usage it was an easy decision to switch to the new card and have already done so.

Additional information based on conversation with CSR on 12/30:

1. My billing cycles close on the 18th of the month, so until 2/18 I will continue to earn the 5% cashback on gas, and on 2/19 (start of the first billing cycle after 2/1) will start earning points.   The three month horizon for spending $1000 to qualify for the bonus 20K points starts 2/19.

2. CSR stated the website with details of the giftcard redemption options would be up mid-January.

3. PenFed will not issue new credit cards until the current one expires.

4. No new credit pull is done, and the credit limit is unchanged, as this event is only a switch to a new card, not an origination of new credit.

HTH~

5

Shorebreak | Dec 31, 2011 | 4,039 posts since 2010

I only use the 5% cashback card for gasoline purchases at Sam's Club which is usually priced ten cents per gallon below the prevailing local price.

4

pearlbrown | Feb 23, 2012 | 2,298 posts since 2010

Details of the reward redemption options are at: www.penfedplatinumrewards.com

The website requires you to establish a logon ID and password. The cash rewards are in the form of prepaid ViSA cards in denominations of $50,100,250, and $500.

4

RJM | Dec 30, 2011 | 499 posts since 2011

Switching Rewards - FAQ

Q. Do I have to switch to the PenFed Platinum Rewards Card?

R. No, the choice is entirely up to you. We are just providing you with the option to switch, if you are interested.

Q. The value of cash back is easier to understand than the value of points. What would my points be worth in the PenFed Platinum Rewards program?

R. A lot of point rewards programs are tricky but PenFed designed the PenFed Platinum Rewards card to be very simple. Each point you earn is worth $.01 (a cent) in terms of value. For example, 5,000 points would be equal to $50, which you can put on a gift card of your choice, including a pre-paid Visa® card that can be used like cash anywhere Visa is accepted, or use towards brand-named merchandise or travel rewards.

Q. How will I be able to redeem my points?

R. You will easily be able to track and redeem your points online or via phone.

Q. Is the PenFed Platinum Rewards Card better for me than my PenFed Platinum Cash Card?

R. Yes, in terms of the ability to earn rewards. The PenFed Platinum Rewards Card not only offers bonus points for gas but it also offers bonus points for supermarket purchases and a point for all other purchases. Remember, the points are worth $.01 so it is like receiving 1% "cash back." The biggest difference between the two programs is that the cash rewards program credits you automatically each month in the form of a statement credit while the point rewards program requires you to redeem your points when you are ready. If the automatic monthly statement credit is something that is very important to you, it may be better to keep your existing Cash Rewards card. You can always apply for the Platinum Rewards Card at a later time.

Q. What if I want to keep my existing Platinum Cash Rewards Card AND get the new PenFed Platinum Rewards Card?

R. That's great – you should keep your Platinum Cash Rewards Card open and apply for the new PenFed Platinum Rewards Card when it is available in February.

Q. Will I still be eligible for the special 25,000 bonus point offer, even if I apply for the PenFed Platinum Rewards Card instead of switching to it?

R. Yes, you will still be able to take advantage of the 25,000 bonus point offer.

Q. Can I switch back to cash rewards once I make the switch to point rewards?

R. Unfortunately, you cannot switch back to cash rewards. However, you can always keep your cash rewards card and apply for the new PenFed Platinum Rewards Card once it is available in February.

Q. What types of merchandise and gift card items are available for point redemption?

R. There will be over 1,000 brand-named merchandise items and nearly 100 well-known gift card merchants to choose from, including the option to redeem for a generic Visa® prepaid card. Additionally, there will be a wide selection of travel and experiential rewards as well.

Q. Can I see the rewards website so I know what the selection will be before I decide to switch?

R. The rewards website will launch on February 11, 2012.

Q. Can I combine my PenFed Platinum Rewards Card points with my PenFed Premium Travel Rewards American Express® Card points?

R. Unfortunately, you cannot combine your points between programs at this time.

3

Chic_Henlips | May 30, 2012 | 11 posts since 2012

However while on hold I had a good chuckle at the "welcome" dashboard for my account, which reads: "Welcome to your Penn Federal Credit Union account Pearl Brown". Apparently the CU is now in Pennsylvania.... or someone is a Penn&Teller fan.

Or......maybe they moved the Pentagon to Penn Station in NYC?

3

Anonymus | Jan 1, 2012 | 1 posts since 2012

I also received notice about card change. I sure am going to miss the monthly automatic credit. I just had to deal with redeaming all the gift cards I accumulated over the past two years and used them for my X-mas purchases. That way I didn't have to charge much on my credit cards. I think that by limiting the option to gift cards only credit card companies lost all the money they could have make on my purchases.

Hope Penfed ads back the monthly credit option.

2

TJJackson | Jan 25, 2012 | 13 posts since 2011

Does anyone know of any legtimate cards left that offer 1% back on all purchases and the credit is monthly and automatic? I just switched to Penfed from Chase when Chase got rid of the automatic credit option entirely, and now, a few months later it looks like Penfed is all but dropping it as well

2

pearlbrown | May 19, 2012 | 2,298 posts since 2010

RJM, the problem you had where you got your haircut is a good example of two of the problems (hold amount and hold duration) one can run into when using a card (whether prepaid or one that is close to the credit limit) in some places.

1. Hold amount:

My understanding is that when a restaurant or other "tip" oriented business (for example spas, hair salons, etc) requests approval to complete your transaction, they will typically preauthorize for an amount over the amount of your bill (typically a fixed percentage of 20%). That 20% is intended to cover the tip they anticipate you will add to the bill. When they request authorization it is for the higher (your bill amt + 20%) figure, and if you have enough for your bill but not for the higher (your bill amt + 20% anticipated tip ), your card may be declined. That is what happened in your case.

2. Hold duration:

If you have enough for the bill+tip amount but choose to leave the tip in cash (or not leave one at all), the "hold" stays on your account and reserves your available funds for the additional amount until the transaction settles, which may be a couple of business days or even a week later. However, preauthorizations can take up to 30 days, and until the transactions settles those funds are not available to you. So even though your original transaction was declined, apparently the funds were somehow "reserved", and since the hold on the funds was not settled for a week, the card could not be used during that time.

HTH

2

RJM | Jan 1, 2012 | 499 posts since 2011

My my period begins 2/16.

As for Samsclub, I used to buy all my gas there too. But I found out my sister, who had been buying my sams membership every year was paying $35 and being a single guy who only drives 2000 miles a year, its just not worth it for me so this year I told her not to renew.

Interestingly, So far, Ive STILL been able to buy gas outside. But inside, they wont sell me anything. Not sure why.

But, Ive been buying discounted BP buy gas cards as I load up when my grocery store has $10 off $50 gas cards from time to time. They require a grocery purchase though. I also found another way to buy BP giftcards at 9-10% discounts which makes it a slightly better deal even though the price is higher. The risk is I lose a card. (I must have $400 hiding in the other room so I wont need to buy them anytime soon)

So even though its a bit higher, it ends up cheaper than Sams.

I do like Sams though for knocking out my rewards checking transactions. I need 36 a month and Sams is the only place that doesnt shut the pump down after 2-5 transactions. Or have some angry indian run out screaming explectives that I cant understand.

I kind of miss buying a few things from sams but I thought it was only costing $10 a year. Cant justify it at $35.

And, I can still get my scripts there. By law, in my state, scripts & beer & wine have to be sold to anyone. (Although most do not know this)

Whats interesting about this new deal is the 3% at supermarkets. Thats going to help.

But, I fear there will be a caveat longer term. While right away, the points might be 1 for 1, I expect later on, they will change and the points will be devaled as happened at BAC and my paypal card charges 3500 points for a $25 giftcard.

Or 6000 points for $50 in cash.

Some have talked about keeping the old account open and opening a new account. You still get the $250 bonuses that way. But I suspect you might get a hard pull.

1

TJJackson | Feb 24, 2012 | 13 posts since 2011

Does anyone know of any legtimate cards left that offer 1% back on all purchases and the credit is monthly and automatic?

I just switched to Penfed from Chase when Chase got rid of the automatic credit option entirely, and now, a few months later, it looks like Penfed is all but dropping it as well

Thank you in advance for any useful suggestions

1

pearlbrown | May 19, 2012 | 2,298 posts since 2010

If you switched to the PenFed Platinum Rewards card and met the spending qualification, don't forget to redeem your points at the PenFed Platinum Rewards website. The points were awarded after the account had been active for 90 days. The rewards program values a point as one cent, so 25,000 points = $250. Note, though, that there is a "hot items" category which gives you a $25 gift card to places like Lowe's, Outback, Golfsmith, Marriott, and Bass Pro Shops for 2400 points instead of 2500.

1

pearlbrown | May 19, 2012 | 2,298 posts since 2010

TJJackson #6 and #8, if you didn't see it, RJM. the OP, answered your question in post #1 (bolding is mine):

"The biggest difference between the two programs is that the cash rewards program credits you automatically each month in the form of a statement credit while the point rewards program requires you to redeem your points when you are ready. If the automatic monthly statement credit is something that is very important to you, it may be better to keep your existing Cash Rewards card. You can always apply for the Platinum Rewards Card at a later time."

1

RJM | May 19, 2012 | 499 posts since 2011

By the way, I finally got my points this week and requested my $250 visa card. Supposed to be here in 7-10 business days.

Several month delay but its free money so its hard to complain.

The visa card does expire in a year though.

1

pearlbrown | May 19, 2012 | 2,298 posts since 2010

RJM, I hate to disagree with you, but I took screenshots of the order process and it said "An inactivity fee of $3 will be deducted from the balance of the card monthly after 12 months of dormancy, plus the month of issue.". So, the card will still be good after 12 months, but you'll have less money on it than you expected after that.

Not that I don't already have a plan for that card as soon as it arrives .... ;)

1

RJM | May 19, 2012 | 499 posts since 2011

pearlbrown

My only point was I DISLIKE cards that charge dormancy fees.

Ive got most of mine spent soon...have an insurance payment and a hospital bill due for $106 + $95 so thats $201 of it.

Dont want to use it for grocery store because I get 5% and stock up on cards for the rest of the year.

So Im trying to use it for stuff like Insurance & so forth where my typical cash back is only 1.5% (A grandfathered paypal card)

Also had a problem using one with limited funds on it.

I had like $10 on a card and wanted to use it to pay for a $8.99 haircut but they rejected the card because it automatically held an extra 20%. And then the card couldnt be used for a week.

And then you have to be careful in spending it. Couldnt even use it for any online purchases or gas. So it was a pain.

I pay for pretty much everything with discounted giftcards. And I have a wallet full of them.

I just hope my card gets here by the 25th. Insurance due on the 27th but the 25th is the last business day before then.

$106 liability only every 6 months. 100/300/100 coverage. That includes roadside assistance as its very cheap.

1

RJM | May 19, 2012 | 499 posts since 2011

I have my internet & phone bills set up with Discover at a 2% cashback for the rest of the year. Netflix, I get 5%.

Power company & gas companies charge a fee.

So I just want to use the visa for stuff Im not getting 2% or more on already.

And Ive had problems using such cards via the internet for purchases. Cant use them at a redbox even.

1

lou | May 20, 2012 | 1,004 posts since 2010

Pearlbrown, the $250 visa card you're getting can be used for any purchase, just like a typical credit card?

1

pearlbrown | May 20, 2012 | 2,298 posts since 2010

The rewards site says "...It works like cash anywhere Visa is accepted so that you can reward yourself just the way you like."

1

pearlbrown | May 27, 2012 | 2,298 posts since 2010

RJM, re your post: Saturday, May 19, 2012 - 2:45 PM The order request for the rewards VISA card says to allow 10 business days but I requested mine on 5/19 and it was in my mailbox yesterday 5/26 (5 business days). Of course YMMV depending on mail transit time.

1

RJM | May 27, 2012 | 499 posts since 2011

Yeah, I got mine saturday too.

A day late for my insurance.

Im leaning toward paying a $3.60 fee to apply the rest to my power bill. Just so i dont have to worry about losing it or having it expire & so forth.

But, regardless if we value it at $245,it was stiill a nice deal.

Going forward, we just have to hope they dont change the terms on us so that a point still means a penny.

Ive got 1168 some odd points left but I havent & wont use it for gas or groceries anytime soon.

Loaded up on gas cards with a deal and doing the same with grocery cards at 5% cashback via chase.

1

pearlbrown | May 29, 2012 | 2,298 posts since 2010

Lou, to further answer your question#16 about the use of the card, although the redemption site said "...It works like cash anywhere Visa is accepted so that you can reward yourself just the way you like.", the materials with the card list the following tips (bolding and caps as in the material):

"At Gas Stations: You must present your card to an attendant inside the gas station. DO NOT use it at the pump. Please note: Ask the attendant to swipe the card after you have filled up to assure the success of your transaction".

"At Checkout: Always select "Credit" when making purchases...."

"At Restaurants: Please be aware that restaurants often authorize an additional temporary 20% gratuity charge to your bill. The actual charge will be the price of the meal plus the gratuity that you add."

I registered the card online and had to agree to T&C which referred to a Schedule of Fees which had not been included in the material accompanying the card. After a 20-minute wait to discuss this with a CSR, I abandoned the call. However while on hold I had a good chuckle at the "welcome" dashboard for my account, which reads: "Welcome to your Penn Federal Credit Union account Pearl Brown". Apparently the CU is now in Pennsylvania.... or someone is a Penn&Teller fan.

1

pearlbrown | May 30, 2012 | 2,298 posts since 2010

Possible, but then it would no longer be a pentagon, now would it ;-)

1

RJM | May 30, 2012 | 499 posts since 2011

What other fees did you have to agree to ?

I havent registered mine yet.

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