I think I’ve figured out why Chase and Visa would agree to give United $400 million more a year – starting right away – for a credit card deal they already had in place for several years.
Much of United’s explanation why made no sense. This new deal isn’t likely to lead to a lot of “portfolio growth” (more cardmembers). They already were introducing new cards, new benefits, and have been running aggressive acquisition bonuses. However 5 words in United’s SEC filing seem to give away the plot.