Alliant Visa 2.5% Card Limits Cashback to $10,000 In Purchases Per Month (Begins March 14th)

Update 2/1/20: Alliant has not sent out a letter to existing cardholders confirming the upcoming change. The limit is $10,000 per month which is $250 max for most people, and $300 max for those who are in their first year. (This is unlike my speculation in a prior post that the $250 limit would apply for to those in their first year as well.) ht reader Jeffrey

Original Post:

The Alliant Visa Signature 2.5% cashback card will introduce a limit of $10,000 in purchases per billing cycle which can earn cash back. The limit will begin on March 14th.

You can see the change when you login and attempt to apply for the card. The way it’s being presented makes me believe the change will affect existing users as well; we’ll find out for certain in the coming weeks, presumably.

Some people put all of their non-bonus spend on this card due to its top-of-the-line 2.5% cashback rate (or 3% during the first year). Even those who aren’t ‘heavy hitters’ might have months with a large purchase which goes above $10k, e.g. a high tax bill.

With the new cap, the most you can gain by having the Alliant card over a different, uncapped 2% card is $50 per month ($100 per month for the first year). There’s also a $99 annual fee, bringing the total possible net per year on the card at $501 more than a different 2% card ($1,101 for the first year). So this change is obviously a big negative.

Still, the extra .5% will continue to make the card worthwhile for a lot of people. And the 3% rate the first year can still be a good deal as well, despite the cap.

Thanks to reader Ori G for sending in this tip.

Related: Alliant Credit Cards No Longer Earn Rewards with Plastiq

View Comments (52)

  • Called and Product Change this 2 1/2% card to Alliant Platinum Rewards with $0 annual fee and 2% cash back. Did not want to pay $99 annual fee and be limited to $10,000 spend per month. Just took a quick phone call. Actually, now using the Bank of America cards with Platinum Honors. Better deal at BofA.

    • The 10k limit does suck. Luckily it’s still worth keeping this year with the 99 fee for me. But I will ask for some kind of spending bonus.

      For months I do more than 10k spend I may consider BofA

  • Can we request annual fee refund? Prorated or not? If they don't do it, can we file CFPB complaint?

    I wouldn't have continued with this trash service of a card had I known this were to happen

  • Am I just crazy or wasn't there some type of rule that CC issuers can't change T&Cs within the first year of cardmembership? I thought that was a rule that led some ppl to find loopholes to take advantage of, no?

  • It would have made more sense to cap 2.5% monthly at $10,000 and give 2% above that amount. Cutting to 0% above $10k when their 2% card has no cap and no annual fee doesn't make sense if you're trying to keep your best customers.

    • The point being: those are NOT good customers. They don't carry balances, they don't use other banking services. they aren't leaving big piles of cash in savings accounts earning nothing etc.

      in the card biz, banks call people who pay on time and in full each month 'deadbeats'. Amex is the only shop that can consistently make money off that group of people and that's because they tend to collect AF's (most people do not call for retention) and they own their own payment network, so are not bleeding out money to Visa or MC with every transaction.

        • Visa / MC / AMEX aren't going to share it all with the card issuer, they keep a healthy amount, they share some of it with the facilitators (think PayPal or Square's cut), they only have to share a non-majority portion with the card issuer (in this case Alliant). Consider that most merchants are only charged around 2.00 - 2.50% on average (the Walmart's of the world are charged much closer to 1.00% and mom and pop stores are charged closer to 3.00%...so unless Visa shared it all with Alliant, it's pretty clear Alliant is eating cost on every swipe. They make it up elsewhere (checking accounts with little interest, mortgage fees, etc).