UFB Direct’s American AAdvantage-earning debit card will reduce earnings effective June 1. Instead of 1 mile per $2 spent on the card, it will offer 1 mile per $3 spent on the card.
In addition they will no longer reward miles for “supermarkets, grocery stores, super stores, wholesale stores, discount stores, USPS, and financial or money transfer institutions.”
I already found the card and account not to be especially compelling at 1:2. This effectively takes it off the table in my view.
That isn’t surprising. Debit cards are no longer financial windfalls for banks. It’s no longer worth incentivizing transactions since the Durbin amendment to Dodd Frank financial reform eliminated the profit for banks from debit transactions. The rewards debit card is almost entirely a thing of the past.
Oddly, though the Suntrust Delta debit card is no longer available to new customers, they continue to honor 1 mile per dollar for existing customers. I’m fortunate to be one of those, for transactions that either can’t be made with a credit card or are too costly to do so.