Earlier today I shared an insider’s view of why card companies offer spending bonuses and waive foreign transaction fees.
- If they can get you to use their card more with a bonus, they’ll get you in the habit of continuing to use the card… even when there’s no bonus.
- They fear that if you put away your card that has foreign transaction fees when you travel abroad, that you’ll keep it in your wallet when you return, too.
So it’s not surprising to see the US Airways Premier World MasterCard offering targeted spending bonuses and in some cases also offering to refund foreign transaction fees.
The card offers 50,000 US Airways miles after first purchase, which is fantastic (no minimum spend requirement). The card will only be available until US Airways and American combine into one airline. And at that point your US Airways and your American miles will combine into one account balance, also, making it easier to have a free trip. So don’t miss out on this card and its bonus before it’s too late.
There’s no card I’ve seen offering as many or as regular targeted spend bonuses in addition to and after giving that big signup bonus. Cardholders may see things shortly after signup like ‘spend $500 per month for three months and earn 15,000 bonus miles’ (that amounts to an extra 10 miles per dollar, so 11x on spend for those three months!).
Right now most cardmembers appear to be targeted for a 20% bonus on points earned between July 1 and August 31, up to 10,000 bonus points. I’ve seen reports of 30% bonuses too.
In addition it seems there are also targeted offers of refunding any foreign transaction fees incurred in July and August (with the funds put back onto your October card statement).
They’re aggressively figuring out and testing ways to get you to use their card — and keep using it. Which from the standpoint of a consumer getting more miles, that’s great to see. More miles in our accounts. Of course you have to have the card to get targeted for a spending bonus.
But that doesn’t mean they’ll outsmart us and get us to start using their cards even when it’s less advantageous to do so than using competitor products. You’ll still want to use the card that’s right for each type purchase that you spend a lot on.
(Note that cards in this post offer credit to me if you’re approved using my links. The opinions, analyses, and evaluations here are mine. The content is not provided or commissioned by American Express, by Chase, by Citibank, US Bank, Bank of America, Barclays or any other company. They have not reviewed, approved or endorsed what I have to say.)
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