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Penfed Visa Cash Rewards Card

klink
klink   |     |   157 posts since 2012

Interesting tidbit I discovered this evening about my card. Let me say at the beginning I do like my card and will continue to use it. Mine is the one that offers 5% cash back each statement cycle on gas purchased at the pump as determined by Visa. So far everything has gone perfectly as the credit is given on time and the balance due them  is paid before the due date. The thing that got me is the following:

For the last 2 statement cycles my balances before rewards ended up ending with an un-even number. So i did a little figuring after the rewards were credited to both statements.

#1) 5% of $32.55= $1.6275 - reward of $1.62, short $0.0075.

#2) 5% of $32.07= $1.6035 - reward of $1.60, short $0.0035.

Total short = $0.011 which in my mind should be carried so that #2 should have paid $1.61 with a carry of $0.001 to my next statement.

Well apparently Pen Fed/Visa doesn't carry so I sit here wondering how much they are making when this might be happening to all their account holders.

So, my solution to this small problem is to ensure that each paid at the pump charge or my monthly total now ends in $0. When figured, that will eliminate the fraction of a penny being lost. Yea a penny and it's alot to me.




klink
klink   |     |   157 posts since 2012
Edit to my above post. Did some more math and determined that instead of saying as above that all my charges now end in $0, I should have said that the individual charge and or the total statement charges should end in $.00 meaning no cents. Anyway, currently I ask myself if I'm getting the advertised cash back rewards of 5%? As of now my answer is no.
Braden
Braden   |     |   124 posts since 2014
I believe that if you total your individual gas charges for the month and multiply them by the 5% cash back you will be getting a total of 5% cash back. They do the entire bill not the individual charges. 
At least that is the way it works out on my bill. 
It would work the same way while in the grocery store. They do not add the sales tax (if you have one) on each individual item but on the total bill.  
klink
klink   |     |   157 posts since 2012
My first post represents totals of bills #1 and #2 (2 seperate months) and my math is figured as shown. Those are one charge on each bill and it still figures as indicated. Gas only as I don't use that card for anything else and tax on gas in this state is figured in the price per gallon and not extra.
Braden
Braden   |     |   124 posts since 2014
 I also only use that card for gasoline. I had a larger than normal gas charge last month of $99.69. the amount subtracted was $4.98 and total owed was $94.71.  The total of the 5% actually was 4.9845. Are you referring to the 45? 
They do not carry that over on an individual bill just like the grocery store doesn't carry over the tax on the grocery bill until the next time you come in. Just like CD's. If you figured your cards when it is over .50 it goes up to the next penny. That is how it works at banks. For savings accounts when after a few accounts it is over 1/2 of a penny the interest is added to that account. Banks are not allowed to keep that portion of a penny. 
klink
klink   |     |   157 posts since 2012
Well you see my point as you only got $4.98 out of $4.9845. Which in my mind is not 5%. Now add mine, yours and imagine all the others thrown in to get an idea of how much someone else is making with our money. If what you say is correct then VISA and or PenFed (credit union) is keeping the tidbits of leftovers. Either way I've stated that I will solve the problem and make everything come out to where I get the full 5%.