USAA has a 2.5% cash back CC

[corn18]

Just got my USAA 2.5% unlimited cash back card on everything. I was using the Citi Double Cash back card. This will get me an extra 0.5%. No annual fee but have to have direct deposit each month with USAA which works out great because USAA is my only bank I use now.

[creditcardfree]

Just got my USAA 2.5% unlimited cash back card on everything. I was using the Citi Double Cash back card. This will get me an extra 0.5%. No annual fee but have to have direct deposit each month with USAA which works out great because USAA is my only bank I use now.

I actually don't see this one on their website. Do you have a link?

[corn18]

It's not in all states yet, so if it isn't showing up, it's because it's not offered yet in your state (the one in your mailing address). They are rolling it out slowly.

[kork13]

I am eagerly awaiting this card being available for us. No idea when, but I'll happily switch over when the time comes.

[TexasHusker]

It's probably 2.5% for the first $1000 a year, then .01%.

[corn18]

It's probably 2.5% for the first $1000 a year, then .01%.

Negative, ghostrider. It's 2.5% UNLIMITED. Why do you post crap like this?

[TexasHusker]

Negative, ghostrider. It's 2.5% UNLIMITED. Why do you post crap like this?

Call me a skeptic. If you read the fine print, it's not widely available and the criteria of eligibility is pretty narrow:

http://www.doctorofcredit.com/usaa-limitless-credit-card-review-2-5-cash-back-purchases/

[corn18]

Call me a skeptic. If you read the fine print, it's not widely available and the criteria of eligibility is pretty narrow:

http://www.doctorofcredit.com/usaa-l...ack-purchases/

Good point. I hope USAA doesn't make this a loss leader and then change the terms later on. Glad I got one now.

[TexasHusker]

Good point. I hope USAA doesn't make this a loss leader and then change the terms later on. Glad I got one now.

Since merchant CC fees are generally in the 2.0% +/- range, if everyone pays their balances in full, it is definitely a loss leader. They are counting on late fees and hefty finance charges on carry-over balances to make the numbers work.

[disneysteve]

Since merchant CC fees are generally in the 2.0% +/- range, if everyone pays their balances in full, it is definitely a loss leader. They are counting on late fees and hefty finance charges on carry-over balances to make the numbers work.

Merchant fees vary by type of card. Reward cards typically have higher merchant fees. I'd bet that the merchant fee on this card is closer to 3%, or at least in the 2.75% range. I'm sure the issuer isn't taking the chance of losing money on the deal.

[TexasHusker]

Merchant fees vary by type of card. Reward cards typically have higher merchant fees. I'd bet that the merchant fee on this card is closer to 3%, or at least in the 2.75% range. I'm sure the issuer isn't taking the chance of losing money on the deal.

That isn't correct. Merchant fees don't vary based on what deal CC cards are offering to consumers. As an example, in my retail business, our rate for Visa/MC is 2% for credit cards, across the board. It makes no difference who the issuer is and does not vary based upon whatever cockamamie promotion that the issuer is offering the card holder.

Credit card companies make their money on the merchant fee, late fees, finance charges, and annual fees.