Update 05/04/18: Looks like the original details were correct. The card will switch over to the following benefits on 05/25/18:
- 1.25% cash back on all purchases
- 15% redemptino bonus when you automatically redeem your cash back into a 529 account
- Can also enroll your card in Round Ups (rounds up your purchase to the nearest dollar and then transfers this into a college saving account)
The letter sent out is as follows:
Hat tip to reader Shira
Original post below:
Important Update from Barclaycard:
We are currently conducting research to redesign the card program’s benefits and features; however, no final decisions have been made. We have reached out to existing cardmembers for their feedback, as we do whenever we refresh our card programs. It appears someone forwarded you the research materials, which are only hypothetical at this time, and contained the following disclaimer (which included their agreement to keep the contents of the research confidential):
You qualify to participate in our survey. We are asking respondents for their opinions in order to offer the best products and services that we can. Please understand that the questions in this survey are about hypothetical products and services. The content in this survey should not be misconstrued as the intentions or plans of any company. We ask that you agree to keep the contents of this survey confidential, and to not share the contents of this survey in any communication form including but not limited to: conversations, texts, blogs, social media sites, etc.
So looks like they haven’t decided on a new version of the card. I think the way they are presenting the options is confusing for cardholders (why present it in the form of a letter?) but that’s their decision to make.
Barclaycard stopped new sign ups for the Upromise card earlier this year, they have now sent out letters stating that the card will be discontinued and replaced with a card that offers the following:
1.25% cash back on all purchases15% redemption bonus when you automatically redeem your cash back into a 529 accountCan also enroll your card in Round Ups (rounds up your purchase to the nearest dollar and then transfers this into a college saving account)
The Upromise card previously offered:
5% cash back on eligible Online Shopping through Upromise.com (this is in addition to the portal rate)5% cash back on participating Upromise Dining Restaurants5% cash back on eligible purchases from participating travel partners through Upromise.com2% cash back at eligible movie theaters2% cash back at department stores1% cash back on all other purchases
It’s not clear when this forced product change will take effect. This is a similar to what happened to Sallie Mae cardholders as well. To be entirely clear a 1.25% cashback card on all purchases is entirely useless and not even close to be competitive considering the top cards earn up to 3% cash back on all purchases.
Hat tip to reader Samir J
Has anyone had any luck with a product change on this card?
Typo – “redemptio” is written twice.
Thanks, fixed.
Interesting; I never received the survey and as yet haven’t received any letter/notice of the change. Anyway, this sucks. But I had a feeling something was coming down the pike when several months ago they removed any reference to the extra 5% cash back you get using the Upromise Mastercard when shopping through their portal. (At the time I contacted customer service about it and was assured that the earning rate would still apply despite the disappearance.)
Just to add a data point: This was my second credit card ever (I’m young), and I didn’t want to close it because of the age of my credit. Anyway, I called support they would not product change me. I called in and used the cancel option and that rep offered me two options. One the Barclays Mastercard Rewards (I’ve never heard of this one before) which offers unlimited 2% on gas, groceries (no walmart / target), phone and utilities and 1% on all other purchases with a signup bonus of 10,000 points when you spend $1,000 in the first (forgot period of time) and no annual fee. The other option was the Barclay Arrival with 2% on travel no annual fee. (I believe there might have been a signup bonus but I went with the other option so didn’t hear too much about this one).
Just wanted to share in case either of those enticed people instead of closing their account and losing age of credit.
CMIIW. The new rate might make sense if the charge amount is small enough and we need to take account for the 15% bonus. Let’s say $3.01 for a cup of coffee, which will round up to $4, =($4*1.25%+$0.99*15%)=$0.2 vs a 3% earning card give you $0.09 back.
Ok, so for a small purchase, the 15% added to the savings makes this valuable. 529 participants still need to consider any fees, as well as the withdrawal limitations.
For giggles, I tried this. Made a $4.09 purchase. Got $.05 cash back (1.25%). Did the Round Up feature so my statement was $5. The rounded up $0.91 + $.0.05 = $.96. Got additional $.15 for the 15% bonus.
Final: $0.20 on a $4.09 purchase –> 4.9% cash back. Don’t think it’s worth the hassle.
AM I the only one is completely bamboozled by the first paragraph under “things you need to know”. So does the card only earn 1.25%? Obviously it doesn’t earn 10% on eligible purchases. But does it still earn 5% on eligible online and dining purchases? In which case this cards changes over the previous card are that it has an improved base rate and a bonus on all rewards earned?
That’s the way I read it too. It’s actually pretty clear if you read the second sentence under what you need to know clearly states we’re NOT losing the 5% through the portal so I don’t know what people are upset about. this is a net benefit not a reduction.
I think you guys are misunderstanding the change here. When shopping through the Upromise portal, everyone gets 5% whether you have the credit card or not. They are stating that you will still get that 5% (from Upromise) but Barclay will no longer issue the matching 5% to get to the total of 10% they have always offered. Instead of 5%, you are now getting 1.25%. The 15% bonus if transferred to a 529 planis also a joke in comparison to the 10% match we were receiving on the combined cashback from upromise and Barclay when transferred to their savings accounts (15% of 1.25% vs. 10% of 10%)
So 1.25 percent with a 15 percent bonus is 1.43 percent if redeemed in 529 plan. I might be missing something but why would anyone want this card?
Well Barclay just made two cards useless. To the sockdrawer go this card and the sallie Mae/commence/whatever the new name is now
Another useless card now. And for those who are prohibited from new Barclays cards under their new credit policies, we can’t even PC this card to anything else from Barclays. There are so many other cards out there that offer better rewards. Even with the 15% bonus, it’s 1.4375% if redeemed into a qualified 529 savings account. There are so many other 1.5% – 2% cards available that this is a step backwards. The only advantage that I see to keeping this card is if they loosen up their credit policies so that PCs become possible again.
There should be a post on here where we can make random comments. Like, that activity here shot down since the ebay deal went live.