I’ve written frequently about the Fidelity Investment Rewards American Express.
It’s a no annual fee card that earns 2% back on all spending (that you deposit into a Fidelity investment account).
There’s now even a $75 signup bonus after $500 spend within 60 days for the card.
Over the weekend @TheMrPickles tweeted me that he prefers the Fidelity Investment Rewards Visa over the American Express.
The Fidelity Visa is a no annual fee card that offers 2% cash back also — but only after spending $15,000 on the card in a year. Before that it’s just a 1.5% rebate card. That means you are giving up 0.5% on that first $15,000 spend ($75).
The upside of course is that the card has greater acceptance as a Visa than it would as an American Express.
I assume, though, that MrPickles prefers the Visa because he can buy things on Costco’s website with the Visa and then return them in-store where they don’t take Visa.
…Costco.com purchases made with a MasterCard and Visa credit card could be returned to a Costco store and would be refunded in cash or check. This caused a run on diamond engagement rings bought for tens of thousands of dollars to get frequent flyer miles or 2% cash back rewards….
Soon Costco changed their policy to require that jewelry with a diamond larger than 1 caret in size was to be returned on the credit card that the item was purchased on….
Some miles and points enthusiasts have discovered that there is a workaround (just don’t buy diamonds)…
This is a strategy that I have never been comfortable with and haven’t done.
But it’s worth highlighting that there’s a no-fee 2% rebate Visa, not just an American Express. The tradeoff is better acceptance but lower return on the firrst $15,000 spend.