Step Right Up: Barclays Is Next To Kill Credit Card Benefits, While Adding Some Token New Benefits As Well

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Sean MacEntee, [CC BY 2.0], via Flickr
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It’s been a busy week in the world of credit card benefits.

On Sunday, Citi removed nearly all of their credit card protections and benefits, swapping them for a new potentially lucrative card trifecta albeit one without useful benefits like extended warranty.

On Tuesday, AMEX announced that major benefit changes will be coming on 1/1/20, including the removal of return protection from most cards, the removal of extended warranty coverage from several cards, the removal of roadside assistance and travel accident insurance from all cards, and decreasing the length of the extended warranty and purchase protection from all cards. They will swap in trip cancellation insurance and trip delay insurance on their premium cards.

I mentioned earlier this week in a post on the remaining cards with price protection, that Barclays was killing price drop protection from their cards on 11/1.

But that’s not all that will be going away on 11/1. They will also be removing extended warranty, purchase protection, trip delay, and return protection, among other useful benefits.

They will swap in identity protection and cell phone damage protection, though cell phone coverage typically has low value caps and requires that you pay your cell phone bill on the card, so you’ll lose out on earning 5 points per dollar on a card like Ink Business Cash® Credit Card.

Unlike Citi, they are keeping car rental insurance. However their insurance is only secondary coverage and has historically excluded Israel and select other countries from coverage. That’s weak compared to the free primary worldwide coverage offered on many Chase cards, such as Chase Sapphire Preferred® Card and Sapphire Reserve.

Discover started the cost cutting by eliminating nearly all card benefits last year.

The cost cutting trend continues and credit card companies are banking on consumers not caring enough to change their spending patterns or cancel their cards.

Hopefully AMEX hanging onto most card benefits will pressure Chase to not follow the lead of other banks getting rid of credit card benefits.

HT: mgarfin, via DDF

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21 Comments On "Step Right Up: Barclays Is Next To Kill Credit Card Benefits, While Adding Some Token New Benefits As Well"

All opinions expressed below are user generated and the opinions aren’t provided, reviewed or endorsed by any advertiser or DansDeals.

jim

Many have said the citi double cash earns thank you points or transferrable as TY points but I logged in to my citi account and the double cash card still is only cash back card and there is nothing about TY points. It hasn’t started yet?

yelped

It seems like it’s only worth to combine no fee cards with ultra premium cards. Everything else just doesn’t make sense now that they offer zero protection that consumers have to come to associate with credit cards.

pointer

If you value transferable points then its worth it

ben

dan if I booked a flight with my Citi card before this past Sunday , and the flight is afterwards would I be eligible for trip interruption/cancellation?

josh

so if I rent a car in Israel on the Barclay arrival before 11/1 I am not covered? can I use ny Barclay arrival points to pay for rental cars in Israel?

chaim

it does seem that although the miles per dollar of spend are staying steady and going up
its the benefits that are getting axed.They really are quite valuable.Did you ever check pricing on a extended warranty? I guess the basic question is does the benefit bring a customer to the ecosystem of that card issuer or is it a one off purchase for when he needs the benefit and then goes back to his regular mileage earning card

David

Will stop using cc if that’s the case.
Amex and chase better keep there benefits.

Michael

All the recent news doesn’t really surprise me. Why should credit card companies be providing all these benefits to begin with? They were never doing it as a favor, it was there to improve their bottom line. I assume that they offered it to draw people into doing their spending on credit cards, the same reason they offer points. But in today’s day and age, where pretty much all spending in done digitally, and cash is a rarity, they don’t need to offer much for people to use a credit card. It seems that originally it was worth it from a business standpoint to offer the benefits, and now it just doesn’t pay.
For all the consumers, especially savvy ones that used the benefits to the fullest (and then some) it is annoying, but, like all the other ways credit card companies are “cracking down”, they’re not being mean, they’re just trying to make as much money as possible, and they feel this is the best way to do it. (And that applies to all the rewards programs changing and devaluing; while you may disagree with decisions they make, they think it’s what’s best for business.)

David

Part of business is to keep your customers happy.

jer

If i signed up for one of their cards and got the sign up bonus, can i call and them and complain i wanted the other benefits and get refunded on the yearly fee? thanks!

Lansky

What’s your point there not trying to be mean it’s just business doh , the part people get pissed about is sudden devaluations in cc and programs with little or no notice

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