Update: The new card is now available, our review of the new card can be found by clicking here.
Boston Globe is reporting that Fidelity is dropping American Express and Fia Card Services, a subsidiary of Bank or America, and transitioning all cards to Visa with US Bank backing the cards. All cards will be transitioned over by July 1. This is based on information heard from Ram Subramaniam, president of Fidelity’s retail brokerage business.
We reported that Fidelity is no longer accepting new applicants on any of their cards for the past week and promises a new card launch tomorrow. It wasn’t clear if the card would still be backed by BofA and if it would be Amex or Visa or both (currently, there is one Visa and one Amex). This report confirms that it will be Visa only, backed by US Bank.
This is terrible news for the pajama money of earning $240 per year by loading Serve with the Fidelity Amex. We had been expecting that to last a while longer at the least, but the report indicates that it will be switching over to Visa only by July 1. Other options for loading Serve include BBVA or Wells Fargo Amex cards for the $12 per month, among a bunch of others, see List Of Third Party American Express Credit Cards.
The good news is that the card will continue to earn 2% on all purchases and have no annual fee. This will give us another straightforward no-annual-fee 2% credit card, along with Citi Double Cash.
We should find out more tomorrow.
HT: TWAforever on Flyertalk
Has anybody tried to see if they can pay their fidelity credit card right at a US Bank with a money order? I’ve done other US bank cards, but this is an Elan card. Just wondering if it would work before I tried it.
Thanks
Finally, there are “Your new card is coming.” mailers coming about the change of processors. They are identical on the outside.
BUT
One mailing confirms the 2% cashback rebate rate.
The almost identical mailing fails to mention the cashback rebate rate. It just says there will be one.
NEW SNAIL MAIL:
I received new snail mail about the Fidelity Investment branded card. It SPECIFICALLY CONFIRMS the existing Fidelity Visa will continue with the 1.5% rewards points up to $15000.00 spending. Separate mail received, the Fidelity AMEX card will become a 2% rewards Signature Visa.
NOTE: Any payments sent to arrive Ju;y 22 or after are to be sent to a DIFFERENT snail mail address. READ the smail mail notice FULLY.
One page says promotional terms will remain in force. Another page says terms change effective July 22 to the new terms listed which may or may not be the same as now in effect.
I will be reading very carefully any new billings for my cards because I have 0% APRs on both of them.
Two pages from “Elan Financial Services” are:
http://www.elanfinancialservices.com/credit-card/products.php This page outlines the
and
http://www.mybonusrewardscard.com/credit/chooseRewards.do
If these are the points the new card earns this would be a slight downgrade. $325 in airfare for 25,000 points.
Good find, Milenomics. Let’s hope this is the case.
When I log into my Fidelity Brokerage account, the below message pops up. There’s also an FAQ: https://www.fidelity.com/cash-management/cardmember-faqs
Fidelity recently launched a new credit card program with Elan Financial Services (Elan) and Visa® as the program’s exclusive network. We selected Elan for their experience in financial services, their innovation, and their commitment to customer service. With Visa, members enjoy the strength, recognition, and acceptance of the Visa brand.
Next Step
What does this mean to you? For now, nothing is changing. You may continue to use your card as usual and enjoy all the associated benefits. Just like today, you can contact FIA Card Services using the number on the back of your card for any help with or questions on transactions, statements, rewards redemption, and payments.
Information will be sent to you in mid-2016 regarding your new Fidelity® Visa Signature® card issued by Elan.
Well, FIA/BoA and I don’t get along, I have a local credit union Amex for Serve loads. Looks like this all good news for me.
Why are people switching to Flexperks as a result of this change?
Just for Serve loads I imagine.
It makes sense, however, I have very little use for Flexperks. The loss of straight cash rewards is a bummer.
We can forsee that US bank will implement limits on CB or something else. They are not the most friendly bank to Manufactured spending. There goes to gravy train
NBA can give you 8 serve loads at 5%, so the annual is $184 plus whatever bonuses, i.e. the $50 here and there you earn. All in all losing Fido isn’t that big a deal
How do you arrive at 8?
5 during Nba finals, 3 during all star weekend
Better question is how do you arrive at $184 … if you get 8 loads at $200 each, that is $1600. 5% of that is $80.
$80 for 8 loads ($1600).
$104 for the remaining 52 loads ($10400) at 1% CB.
Best Case scenario: The new Visas is just a straight 2% CB card that’s only slightly better than the rest of the current field / easier redemption methods.
Worst Case scenario: The new Visa is a tiered 2% CB card, similar to the current FIA Visa.
The loss of debit billpay, Amex Offers, and Serve loads definitely stings though. Flexperks, here I come!
Don’t you all come jumping on the Flexperks bandwagon! Don’t want it to break an axle or come to a halt due to the extra weight of new pajama earners.