USAA Credit Cards Now Fee Free

[JimGant]

Probably most USAA members already know this (I'm slow), but when USAA replaced their members' MasterCard credit cards with Visa credit cards last year, they also eliminated the 1% foreign transaction fee. A product of Visa vs MasterCard policy? -- I dunno. But, anyway, my replacement Visa card is called a "USAA Rewards" card, has no fees, and has a 1% cash back on all purchases. Not too bad, as before there was a 1% fee (the passing on of MC's foreign transaction fee) -- plus I only got 1% cash back after $20,000 in purchases (as it was prorated). That's why the card languished in the back of my drawer.

 

But, the new USAA card is actually superior to what had been my backup credit card -- Bank of America's Travel Rewards credit card, with no foreign transaction fee, and a cash back maximum of .9%. My primary credit card has been -- and continues to be -- the Capital One Quicksilver Card, with no fees -- and 1.5% cash back on all purchases. So, the "USAA Rewards" card is still second place.

 

But wait....... I stumbled on a credit card offer from USAA called "Preferred Cash Rewards" that, while also not having any fees, pays a flat 1.5% cash back on all purchases -- same as the Quicksilver card. I asked USAA if they could convert my "USAA Rewards" card to this card model -- and they said nope. Thus, yesterday I applied for their Preferred card -- a little miffed I hadn't been alerted to its availability.

 

Anyway, I should soon have a credit card equivalent to my Quicksilver card, which has been just fine so far. But I know with USAA I should never have any argument about having a foreign address, what with their military connection. Not that Capital One has given any indication they frown on foreign addresses.

 

Unfortunately, USAA's new Visa Debit/ATM still has the 1% foreign transaction fee -- and apparently no ATM refund for transactions overseas. Schwab, thus, still reigns supreme with Debit/ATM cards issued in the US.

 

 

[jimmyyy]

My Navy Fed account refunds all those fees on my debit card.  Its the Active Duty Checking. 

[Pib]

Jim,

   Yea, a couple of months ago when I got my USAA Rewards chipped credit card to replace the non-chip Rewards card and did a little bit of review on the USAA website I notice the Preferred Rewards card had a significantly better rewards program.    The Preferred Rewards card was not available years back when I initially got the Rewards card.    And when I initially got the Rewards card I really didn't use it since it use to have the 1% foreign transaction fee.

 

     I called USAA about switching from the Rewards and Preferred Rewards card and the rep said yes I "might" be able to do it as he had done if for a couple of folks last week...but when he tried for me it turned out as a no-go as he said USAA had stopped doing a simple upgrade especially during the card chip swap period.   He recommended I call back in mid September when the chip swap program is suppose to be completed but I never did.   He said by then hopefully USAA will allow folks just to upgrade to the Preferred Rewards card versus actually applying for it from scratch.   But based on your experience sounds like they still will not allow a simple upgrade but require a new application.  

 

      I too wouldn't mind having the Preferrred Rewards card to supplement my CapOne Visa/Master and PenFed Visa cards that also provide 1.5% cash back and no foreign transaction fee.   I use to use the CapOne cards the most and had the cash back set to trigger at the $25 reward level which usually took me around 5 to 6 weeks to earn that...but I know primarily use my PenFed card that pays the cash back on each month statement whether you have $1 in cash rewards built up or $100.   Plus the PenFed card do not charge a Cash Advance fee when I do my prepaid cash advances at Thai banks to avoid the Bt200 ATM fee...plus I can get up to $2,000 per cash advance which is over double what you can get out of an ATM on one pull.   Me like PenFed credit cards.

[Pib]

Jim,

   Here's one for you.  This morning I decided to call USAA again about upgrading my USAA Visa Cash Rewards credit credit to their Visa "Preferred" Cash Rewards card like talked about earlier.  

 

    First, I wanted to see if I could just upgrade my current card to the new/more-better card without going through the application process for the card.  No-can-do.   So, I said OK let me just apply...and let's do it over the phone.  OK, the rep I initially got transfers me to anther rep to take the application.   The new rep kinda starts at that the top of his script to ensure I was knowledge of the different cards available to me, "to include any promotions."    

 

     Turns out thetr is a special promotion that just started for a Preferred Cash Back card (Visa) that pays 2.5% "on everything" instead of 1.5%, no foreign transaction fee, no annual fee, etc.   It's called something like the Limitless Cash Back Card.

 

 However, but, you need to have a $1,000 direct deposit going into your USAA "checking" account otherwise  you only get 1.5% cash back which is still good.   OK, I have a couple of pension direct deposits going to USAA right now exceeding $1000,  but going to my Savings account instead of Checking to earn a tad more interest....I would just switch one to my Checking account and transfer the funds over the Savings account automatically or manually as needed. 

 

      But then the rep said it looks like you'll have to apply online for this Limitless card....I said OK, where is it on you website....I'm online right now.  Well, he couldn't find it...and he looked and looked.  He even put me on hold as he talked to other reps and even tried to call a certain department for more info that had already closed for the day.  I was already 11pm EST time when I called.   I said OK, I definitely want to get more info on this new card....I will call back when that other department is open which closes at 7pm EST.   And the rep said please do and he note-coded my account so when I call back the rep I talk to will know what I calling for.

 

     But what I didn't tell him was while I had him on hold I did some googling and found more info on the "pilot" program apparently only available in 7 states and is apparently being targeted at certain folks...and maybe only available via their mobile App.    Below are a couple of links talking the new offer.

 

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

 

http://ficoforums.myfico.com/t5/Credit-Cards/USAA-2-5-Targeted-Offer-UPDATE-NOV-2016/td-p/4761334

 

 

 Now with my registered address with USAA not being in one of the states this pilot card is apparently being offered in, I doubt I can apply when I call back and tweak them some more, but I am going to call back....and somewhat play dumb on the issue to see what happens.   And who knows, maybe the pilot program will expand to all states in the near future...so if I can't get in under this promotional program I'll wait a little longer in hopes it will be opened up to all USAA members in all locations.

 

Time will tell....yeap, having a no annual fee and no foreign transaction fee that pays 2.5% on everything versus the couple of no fee cards I have now that pay 1.5% on everything would be icing on the cake....I would definitely be using such an USAA credit card for almost all my buys.

 

 

 

     

[JimGant]

Pib,

My Preferred Cash Rewards credit card is in the mail, only to become obsolete -- in the near future -- by the 2.5% Limitless Cash Back card (which, according to one of your links, should be available to all USAA members sometime in 2017). I certainly qualify, having both my Air Force and SS checks direct deposited into my USAA Checking Account. But, interestingly, just doing a monthly ACH transfer of $1000 into your USAA Checking Account will qualify you (from one of your links):

 

Quote

I did call them today and they confirm that the direct deposit has to be in a single transaction of at least $1000 and ACH transfers count. And must be done at least every 30 days or other wise the 1.5% goes into effect.  I plan on doing ACH transfers when I apply for this card

 

Looks like USAA plans to be seriously competitive -- at least with their credit cards. Now, if they'd just emulate the Schwab model for their ATM/Debit card.

[Pib]

Jim,

   You read more of the two links I posted than I did.   Once of the links pretty seems to have had a bulk of the terms and conditions.  Regarding what qualifies as the monthly $1000 deposit it would need to be a single direct deposit of at least $1000 from an employer, govt entity, or from another financial institution.  

 

  So if a person didn't have a $1000 deposit coming in like from a govt pension it appears they could just setup an automatic transfer of at  least $1000 to their  USAA checking account from one of their other banks....then they would get the 2.5% vs 1.5% cash back.

 

    I'm going to definitely give them a call to see if I can get in early on the card, but I bet they'll say no since my address is not one of the 7 states they are currently testing the card in.   Heck, all they can do is say no.   Then I'll just wait until they hopefully go public in 2017.

 

Quote

Note 1 Within 90 days of opening your credit card account, you must establish a monthly qualifying direct deposit of at least $1,000 to your USAA checking account. A qualifying direct deposit is a single electronic transfer of at least $1,000 that you initiate with your employer, a government entity or an external financial institution. Funds transfers between USAA accounts are not qualifying direct deposits.

 

[Pib]

Here's the Terms and Conditions for the USAA Limitless Card

 

https://www.usaa.com/inet/wc/credit_card_limitless_cashback_rewards_terms?akredirect=true

 

 

USAA Limitless Credit Card.pdf

[Pib]

Called USAA again last night.   Got to talk to the department that had more insight on the new card.  I was unable to apply as it's still a pilot program and I didn't qualify for the pilot program.   Now the person I was talking to didn't specifically say why I wasn't qualified and even said only the pilot program project team would know the the reason(s).  But when the rep pulled up my USAA profile/account info and tried to insert me into the program their system just wouldn't accept it.   If I had to guess it would be my address didn't line up with one of the states the pilot program is authorized to run in.    I asked when will the new card go public if USAA decides to open it up to everyone...the rep was not sure at all but said said sometime in early 2017.    To me "early" could mean sometime between 1 Jan and 30 Jun...maybe to others early would mean Jan-Mar....time will tell.   However, I now feel content that I tried to force my foot into the door....now I just need to let my foot heal after that failed attempt.

 

Edited November 30, 2016 by Pib

[JimGant]

A pilot program to show what? That USAA members (or potential members) from a diverse collection of states will now have USAA checking accounts with $1000k deposits? I guess if that doesn't pan out, the 2.5% cash back will just be a loss -- not a loss leader (and more than likely, will just never happen). Anyway, USAA must have made a fantastic deal with Visa last year - to be exclusively a Visa credit card company. First deal was certainly to have Visa "eat" their foreign transaction fee. Quite a no-brainer, considering the disproportionate number of USAA credit card holders (or, more importantly, potential credit card holders) who are stationed/live overseas, compared to the average population of US credit card holders.

 

Would be fun to see the inside of USAA's business model. Probably pondering allowing junior ROTC students to become members, along with those with dishonorable discharges. Sigh.

[Pib]

I too am surprised they are offering a 2.5% cash back on everything.      Nothing unusual about some cards offering high cash rebate up to around 5% on selected purchases all the time like cards that provides 5% cash back at self service fuel stations...I've got a PenFed credit card like that...in the States it's easy to use such a cash back card at fuel stations....but here in Thailand I"ve never seen self service pumps where you slide your credit card in and then self fuel your vehicle.  I've heard PTT has this concept in the testing phase, which means 20 years from now service fuel pumps may be common in Thailand.   But actually until the cost of labor in Thailand gets significantly higher I doubt there will be a significant move towards self service fuel stations.

 

Heck, my CapOne Mastercard (got a Visa one also) use to provide 2% cash back on everything....that lasted about 2 years before they backed it down to 1.5% on everything and basically turned it into a Quicksilver card paying 1.5% cash back.

 

Guess we will just have to wait and see if USAA takes their 2.5% card out of the pilot stage after the pilot stage shows them all the pros and cons (to included unintended ones).   Heck, meeting the current requirement to get one should be easy for the majority of USAA members....they would probably drop their 1.5% and less cash back USAA cards and go for the 2.5% card.  Time will tell.  

[Langsuan Man]

I applied online and within thirty seconds had been approved and the new card is on it's way

 

Lucky that I had cancelled my old USAA Credit card since a card that is not used does impact your FICO credit score

 

I also got lucky in that I recently moved from PA to WA and they both are on the list of approved states for issuance of the new card:

 

[Pib]

I expect the key is having an address registered with USAA that is within one of the seven states the pilot program is being ran in.

[Pib]

LSM,

   Forgot to ask, how did you receive the offer?   Via the mobile app?   When logging onto your USAA account with your PC?   Maybe you got an email?  

   Just how did USAA deliver/present the offer to you?   Thanks.

[Langsuan Man]

No your post is what spurred me on. When I logged into my USAA account, I just went to their Credit Card offerings and the new card was the first one listed.

Since Cap One will only give me a 12K credit limit the 25 K limit on the new USAA card is a better deal (so long as I pay the balance off every month)

[jimmyyy]

I have just logged into my USAA account, i have been using navy Fed, and their rewards card has no foreign transaction fees which i like.  I may have to apply for the USAA card this weekend.  To good to pass up.

[Pib]

15 minutes ago, Langsuan Man said:

No your post is what spurred me on. When I logged into my USAA account, I just went to their Credit Card offerings and the new card was the first one listed.

Since Cap One will only give me a 12K credit limit the 25 K limit on the new USAA card is a better deal (so long as I pay the balance off every month)

Today I played around with the USAA site by just going to their main page and then clicking their credit card products.  It first asked me what state I lived in.   I intentionally selected WA (Washington) which I knew was one of the 7 states in the 2.5% Limitless card pilot program...and lo and behold it offered me the 2.5% card.   I clicked the apply button which takes me to the USAA logon screen, I log on and then immediately get an error the credit card application experienced an error....please call a certain 1800 number.   I expect as soon as I logged on and it saw my registered address was "not" WA or one of the other 6 states in the pilot program it just shutdown the application process.

 

Then I closed the browser and went to the USAA home page again, clicked credit cards and when it ask me to select a state I picked one not in the pilot program and it did "not" offer up the 2.5% card...just the other 1.5% cards   

 

And when I logged on and then select the Credit card product area it does not offer me the 2.5% card...just the other 1.5% cards.  

 

So, I guess unless your address is one of the 7 states the pilot program, a person will just have to wait until they offer the 2.5% card to everyone.

 

And credit limits on cards doesn't seem to follow rhyme or reason sometimes.  I've got two CapOne cards...the first one I got years back was a Mastercard with 7.5K credit limit and its credit limit has never been raised, it gets used a lot by the wife and I use it occasionally just to show use (it's a 1.5% cash back card and I have asked at least once.   My sister in the States has the same card and she has experienced the same thing....they just will not raise the credit limit on that card.   About a year later I got another CapOne credit card...Visa 1.5% cash back card...it started off with a 15K limit...then climbed to 20K without me asking...and it's know at 25K without me ever asking.    

 

 

 

 

 

Edited December 1, 2016 by Pib

[Langsuan Man]

15 hours ago, Pib said:

And credit limits on cards doesn't seem to follow rhyme or reason sometimes.  I've got two CapOne cards...the first one I got years back was a Mastercard with 7.5K credit limit and its credit limit has never been raised, it gets used a lot by the wife and I use it occasionally just to show use (it's a 1.5% cash back card and I have asked at least once.   My sister in the States has the same card and she has experienced the same thing....they just will not raise the credit limit on that card.   About a year later I got another CapOne credit card...Visa 1.5% cash back card...it started off with a 15K limit...then climbed to 20K without me asking...and it's know at 25K without me ever asking.    

 

Same opinion from me.  Recently asked for an increase in the limit for my Cap One card and all they would give me was a $1,200 increase on a 12K  " credit line "  card.  Never been late and have good FICO score so was dismayed that they would only give me a minimum amount of increase

 

But having dealt with CC companies in the past not all that surprised since they don't like customers who pay off their balances every month.  Unfortunately they are not contend with the fee's they obtain from the businesses that accept the card but want the high interest rates from those who don't pay off balances   

Edited December 2, 2016 by Langsuan Man

[Pib]

LSM,

   How is that USAA Limitless Cash Back Credit card that pays 2.5% cash back on everything working out?   I see from another forum that USAA has apparently expanded the card's availability from the initial 4 states to 20 states as of Feb.   Unfortunately my APO address is my registered address with USAA so I expect I'll have to wait until USAA opens the card up to all USAA members regardless of address before I can get it.

 

 

[TallGuyJohninBKK]

Just in terms of credit card rewards and no foreign currency fee, Amazon recently upped the ante with their Amazon Rewards Visa Signature card (via Chase) for cardholders who are also Amazon Prime members. And it's a very good deal if you're someone like me, who does a lot of shopping via Amazon -- 5% rebate on all Amazon.com purchases.

 

I've been meaning to give the card a try here to see how it deals with restaurant and drugstore purchases elsewhere on the 2% issue, but haven't gotten to that yet. Meanwhile, you clearly do NOT want to use the card for cash advances, as the cash advance fee is $10 or 5% of the advance, whichever is greater.

 

 

 

[Langsuan Man]

LSM,
   How is that USAA Limitless Cash Back Credit card that pays 2.5% cash back on everything working out?   I see from another forum that USAA has apparently expanded the card's availability from the initial 4 states to 20 states as of Feb.   Unfortunately my APO address is my registered address with USAA so I expect I'll have to wait until USAA opens the card up to all USAA members regardless of address before I can get it.
 

 

To be honest with you I haven't even had a statement issued yet so I can't comment. Transactions don't show any foreign fees as promised. Will have to wait for the statement to see the exchange rate used. Hopefully they will show rate like Cap One does, on the statement

I do like the fact that the credit card is tied directly to your online banking page. So when you log in you automatically see your running balance for both your checking / savings account and the new card

LSM

Sent from my Nexus 5X using Thaivisa Connect mobile app

[claynlr]

Is Schwab the best thing going for a debit card?

[CaptHaddock]

Those of you who qualified for the Limitless Cash Back card, did you have to provide your residential address in Thailand on the application or did USAA accept your mail forwarder's US address?  I have an account with USAA currently.  The only address they have for me is my mail forwarder.  I don't want to provide my residential address, because even though I know that they don't currently refuse accounts to expats, they might do so at some time in the future.

[oldcarguy]

is there anyway to set up your USAA   account to automatically  pay your card balance every month ,

I really do not need the  credit card  , and am real bad remembering  the day I need to pay , so autopay would be great ,

 

an  ATM card  without fees in the  be USA  and overseas would be good if it worked at most  ATMs  and you do not have to search for a no-fee  ATM  for 20 minutes.

 

 

 

I

[CaptHaddock]

12 minutes ago, oldcarguy said:

is there anyway to set up your USAA   account to automatically  pay your card balance every month ,

I really do not need the  credit card  , and am real bad remembering  the day I need to pay , so autopay would be great ,

 

an  ATM card  without fees in the  be USA  and overseas would be good if it worked at most  ATMs  and you do not have to search for a no-fee  ATM  for 20 minutes.

 

 

 

I

USAA ATM cards may not charge their own fee (I think for the first 10 uses in a month, IRRC), but they do not reimburse fees charged by the ATM owner.

[TallGuyJohninBKK]

When I look today at the USAA webpage for checking accounts (not credit cards), down at the bottom, they have the following details:

 

Quote

USAA Bank also refunds up to $15 in other banks' ATM usage fees for transactions at ATMs in the United States. The ATM fee refund does not apply for the month in which the account is closed. The ATM fee refund does not apply to USAA Cashback Rewards Checking. A 1% foreign transaction fee applies to withdrawals outside the United States.

https://www.usaa.com/inet/pages/bank_checking_main_rewards_flow

So that would seem to be saying, for their checking accounts, they DO charge a 1% foreign currency fee on foreign ATM withdrawals. And they DON'T reimburse other banks' ATM charges outside the U.S.

 

But I don't have a checking account with them, so I can't speak from first-hand knowledge.

 

[TallGuyJohninBKK]

3 hours ago, claynlr said:

Is Schwab the best thing going for a debit card?

It's certainly ONE of the best, in terms of having no foreign currency fee and reimbursing foreign ATM fees. And they are available to U.S. residents anywhere in the country, unlike some banks and CUs that only serve limited markets.

 

However, you do have to open, but not necessarily use, a brokerage account with them in order to gain those benefits. Same with Fidelity.

 

In terms of nationally available accounts for checking/debit cards, State Farm Bank has no FCF and reimburses foreign ATM fees up to some limits, if memory serves.  There are various other smaller banks and CUs that do the same, but they are not nationally available.

 

[JimGant]

Good find, John. I don't use the USAA Debit/ATM card for anything; but had  assumed they had dropped the 1% foreign transaction fee when they dropped it for their credit cards. Wrong assumption. Wonder if the 1% is also charged for their Debit/ATM card used in the 'credit card mode' (i.e., a POS transaction)?

 

Obviously, this puts USAA further down the ladder on best ways to get money to Thailand.

[Pib]

Yes, the USAA debit card charges the 1% foreign transaction fee on cash withdrawals and purchases.  Fine card for use "within the U.S."; however, outside of the U.S. leave the card home due to the foreign transaction fee and non-reimbursement of ATM User Fees.

 

https://www.usaa.com/inet/wc/banking_secure_checking_service_fees_terms

 

 

[Pib]

Yeap, St Farm reimburses ATM User Fee up to any amount if you have a monthly ACH direct deposit going to them monthly. Otherwise the reimbursement is limited to $10/month.   I do have a monthly direct deposit going to them...and they have always reimbursed by Thai bank ATM fees.  Reimbursement occurs on each monthly statement.  I've never had to call them to get an ATM User Fee rebate as implied may be required in their fee chart below.   Now I think I remember one poster who accumulated more than $10/month in Thai ATM User Fees (like 2 or more withdrawals) and also had a monthly direct deposit going to them needed to call St Farm to get the reimbursement.  

 

I've never exceeded the $10 figure yet since I have and use other credit/debit cards for ATM and counter withdrawals....I don't like hitting any of my banks/cards with too many reimbursements or cash withdrawal interchange fees per month...prefer to minimize the pain to any particular bank and spread the pain among the banks.  Any time a bankster has to reimburse a customer or pay another bank an interchange fee I figure that's painful to them.

 

https://www.statefarm.com/finances/banking/resources/bank-disclosures/deposit-account-pricing-schedule

[TallGuyJohninBKK]

43 minutes ago, JimGant said:

Good find, John. I don't use the USAA Debit/ATM card for anything; but had  assumed they had dropped the 1% foreign transaction fee when they dropped it for their credit cards. Wrong assumption.

 

Jim, understand your assumption, albeit the wrong one....

 

FWIW, Capital One is pretty much just the same in that regard. Their main credit cards have long had no FCF. But, their debit cards AFAICR have always have a foreign currency fee, last I recall, they were passing along the fairly standard MC 1% rate.

 

You might think these guys would be consistent. But unfortunately, they're not.