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JPMorgan Chase and United Airlines have introduced a new travel rewards card that is built to attract a broader clientele.
With the two companies sharing a 30-year partnership on co-branded cards, they have released a number of rewards products. However, due to several distinctive features, this new United TravelBank card appears to be one of their more attractive products.
The United TravelBank card has a favorable rewards structure and comes at a very low cost to cardholders.
Annual fee: Unlike most rewards cards, this new product has no annual fee. For some context, on its website, Chase offers two other co-branded cards with United Airlines; they have annual fees of $95 and $450. The lack of annual fee will likely attract a new group of consumers who may be interested in earning rewards of some type, but are unlikely to earn enough to justify the costs.
Rewards structure: Chase and United Airlines are offering cardholders 2% back in TravelBank cash per $1 spent on United purchases, such as airline tickets or upgrades, and 1.5% per $1 spent on all other purchases. What makes this structure unique is that consumers don’t have to reach a certain cash limit in order to redeem — as a result, a cardholder could potentially redeem cash back as low as $1 to be taken off a ticket purchase.
Sign-up bonus: Cardholders can earn $150 in TravelBank cash if they spend $1,000 in the first three months of opening their account — in comparison, cardholders of the United MilagePlace Club card earn $100 after their first purchase.
This new launch is a way for Chase to keep the pressure on its rivals in the highly competitive rewards market, without seeing …read more
Source:: Businessinsider – Finance