I benefit substantially from rewards cards. But I view them as just one more way for the rich to get (a little bit) richer. If they all just went away, I believe it would be a better world (or at least, a better USA).
I still can't figure out how Amazon's Prime/Chase card can give me back 5% of everything I spend at Whole Foods. It's absurd.
> I still can't figure out how Amazon's Prime/Chase card can give me back 5% of everything I spend at Whole Foods. It's absurd.
For one, it requires a $120/yr Prime membership to get that rate - the non-prime rate is 3% (which is seen on many cards). I have an Amex with an annual fee that gives 6% back at all grocery stores (including Whole Foods), though I also wonder how that can be profitable for them. The break even point where you earn more on the 6% card after the annual fee compared to the no-annual fee 3% card is only a little over $3000/yr (~$60/week), which isnt much even for someone single.
Whole foods is part of Amazon. They can afford to offer the discount because it's their own sales. Internally, Chase probably charge Whole Foods for the cashback.
I still can't figure out how Amazon's Prime/Chase card can give me back 5% of everything I spend at Whole Foods. It's absurd.