U.S. Bank recently launched the U.S. Bank Smartly card, this card earns up to 4% on all purchases. Some cardholders have received a letter warning them not to use this card for business purchases. Interestingly people are receiving this warning despite not making any business purchases on this card.
If you received this e-mail feel free to discuss what may have triggered it in the comments below.
Hat tip to csryang
Did not receive this email. I have paid income and property tax using this card. In fact, was upgraded to Premium rewards recently. Have been a long time us bank customer though.
What does being “upgraded to Premium rewards” mean exactly? Do you now get more than 4% CB?
That’s one of the tiers in the Smart Rewards program. Not directly related to the Smartly credit card.
They also changed the smartly savings rate tiers so you need 100k to get the max rate (was $25k I think).
Maybe smartly isn’t as smart as they thought, seems like they are making adjustments to get to profitable.
Not true. I jumped on this card as soon as it came out. When the card was launched, to get the 4%, the savings investment needed to be 100K. It never changed.
Must have been an error in their calculations then because I was getting the max rate on savings (shown in the app) before about a week ago with only 65k in USB assets.
I called US Bank and they said the email was sent to everyone and they are getting negative feedback about the tone of the e-mail.
I don’t believe that the email was sent to everyone. There are people in the comments and on the MyFicoForums forum who said that they didn’t receive the email.
What I do believe is the negative feedback on their end. The tone of the email was somewhat threatening if we’re being honest.
I used to have a VGC operation that exchanged for Panama bonds which converted into Euros due to the favorable exchange rate but US Bank shut that down.
I refuse to deal with a bank that actively tries to steal rewards from its customers!
Of the major banks… USB is easily the most anxious and shutdown-happy. They do not bat an eye at closing accounts due to “excessive” gift card purchases, which is ironic because they have a fairly large presence in the prepaid Visa/MC market. If they suspect any kind of MS, they will shut you down without any warning. If you use Apple Pay “too much” with AR, they will shut you down.
This warning comes as no surprise to me and it’s one reason why I never bothered with the card. I am not a huge MSer but I do purchase things like Amazon gift cards from grocery stores in $500 chunks to capture fuel points and grocery perks. I don’t trust that USB wouldn’t target such behavior as against their terms of service.
I think a card like this makes a lot of sense for a bank to offer to high net worth/high spend individuals – CC rewards can be more lucrative for this crowd given they are not subject to taxes like bank interest is. But USB offering this makes no sense given their history of labeling many kinds of high spend as manufactured. I am almost certain they will nerf it in the coming year.
I thought that Kroger stopped giving fuel points to Amazon GC purchases since last year(?).
Going to squeeze whatever I can out of this card and when they shut it down, I’ll take my relationship somewhere else.
This game works both ways.
Have people that have had credit cards shut down by USB in the past been able to open Checking accounts afterwards? If not, I would slow your roll!
I can confirm that I have been shut down a few years back under suspicion of MS-ing (I wasn’t doing so on any of my USB credit cards) but they definitely saw deposits from my other spoils on the checking side. They shut down one of my cards after I made a relatively small store purchase around Christmas. I suspect it was an excuse to avoid paying out the sign-up bonus. I closed my other CC and checking+savings accounts in protest. 3 years later I opened another checking account for the account opening bonus and kept the account for a year before closing last year. So, a DP for you. I wasn’t blackballed even though one of my 2 CCs was closed by them.
I mean of course I have no shame either, but there aren’t actually that many banks offering lucrative deals. It seems quite easy to alienate yourself out of the game entirely with this attitude.
It seems like
DT subscribes to the mantra of “go big or go home” to the nth degree!
“If you use Apple Pay “too much” with AR, they will shut you down.”
For what is worth, I have put 5 figures spend multiple years on my AR only using Apple Pay and I have had no issues. But I never buy gift cards. I think that’s the issue.
What is AR?
Altitude Reserve
Well put. I’m watching closely the first year data points. US Bank anxiety gives me pause to pursue the Smartly.
“If you use Apple Pay “too much” with AR, they will shut you down”
Have been using AR since 2021 and i pay only apple pay. That includes kroger, costco, online retail check out with Apple Pay, even rent Cafe has Apple Pay option with 2.5% fees. I have about 4-7k spending each month exclusively with 3x Apple Pay. I have cashed out thousands of statement credit exclusively using travel (1.5x) category.
I did not receive this email, largest purchase ~$600 at an auto repair shop
might be a relevant data point that I was not at the full 4% cash back status for this purchase, it would have either been 2.5% or 3%
Even with 100k?
So many examples of this bank’s left hand not knowing what the right hand is doing. Today, I received an email encouraging me to enroll in online banking for my U.S. Bank Altitude Go Card. “Sign up today!” I have been enrolled in online banking for that card since first acquiring it in early 2023. 🙄
Another example is how they send me junk mail to apply for the Smartly Card when that’s my only credit card with them!
I’m not aware of any bank that excludes you from marketing based on what you have. Amex, Citi, Chase, BofA, US Bank, USAA all send junk mail prequal offers anyway.
Years ago, I put myself on a list with the US Government that bans me from getting unwanted junk mail like that. Yet US Bank sends it anyway because I’m a customer of theirs.
For example, I ripped up a letter from US Bank offering me a business credit card this afternoon. It felt like a second coming of the email.
I got the same email! I have had the card for over 4 years and enrolled in their online banking
I got the email. I did make a plastiq payment for tuition that was in the five figure range, and USB labeled it as a grocery store name (that I’ve never heard of before) so that was weird. I also used it for the recent vgc promo at odom, so maybe that was a possible flag.
Mostly paid school fees with this card. Pretty large transactions, which is probably what triggered it. Or maybe they’re just sending it to everyone as a warning.
It wasn’t sent to everyone as some in the comments stated that they didn’t receive it. See my comment here for my theory of what’s going on: #2015489 .
I received the email. I haven’t put any “business expenses” on my card at all. Not sure what could have triggered this (if anything). I do use the card for my rent, which after the 3% fee my condo charges comes to just under $3k/month.
Worth calling US Bank to inquire? Or continue business as usual (pun intended)?
Or sign up for a Bilt Card