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ironpig70
04-01-2011, 10:49 AM
I am so livid over this and I know many here have there card so I figured I would post up what the company is doing.

I called today because I used my card for groceries and was told Wal Mart is not a grocery store despite selling groceries. I am okay with that. I can see them doing this. I'm okay but not happy but thats life.


What I am not happy is the fact that Discover WILL NOT give you more than 1/4 percent for any and all charges at Wal Mart, Sams Club, Costco or any other place they feel is a "wharehouse" type place. Yes folks even when you spend the $3,000 annual amount you will only get 1/4% if you use the card at a wharehouse type business. What the names of said businesses are unknown as nobody is able to show or tell me where these are.

And if they are mentioned its in minature print.

sydneysmom
04-01-2011, 10:56 AM
I think if you shop there often, I'd look for a different card. We don't have Discover....when I did, I didn't like all the "limits" that they would seem to come up with. So I said, you know what ? Keep them. We switched to the Disney Visa and I LOVE IT !! you get your Disney dollars, no messing around with "where you buy" or "what you buy". it's all created equal.

I think Chase also has a "cash back" card..... I'd look into that. :thumbsup2

Green Tea
04-01-2011, 11:28 AM
This isn't exactly a warning for a scam. It is is in their terms....

Metsfan520
04-01-2011, 11:34 AM
I am so livid over this and I know many here have there card so I figured I would post up what the company is doing.

I called today because I used my card for groceries and was told Wal Mart is not a grocery store despite selling groceries. I am okay with that. I can see them doing this. I'm okay but not happy but thats life.


What I am not happy is the fact that Discover WILL NOT give you more than 1/4 percent for any and all charges at Wal Mart, Sams Club, Costco or any other place they feel is a "wharehouse" type place. Yes folks even when you spend the $3,000 annual amount you will only get 1/4% if you use the card at a wharehouse type business. What the names of said businesses are unknown as nobody is able to show or tell me where these are.

And if they are mentioned its in minature print.

Sam's Club & Costco are warehouse stores. they sell a lot more than groceries. Most rewards programs are the same way, I know the Disney Visa rewards does that too. So this is not a scam, it is a common thing. I actually like the way Discover does their rewards, you don't need a minimum amount spent to get it, as you have to with Disney Rewards.

Dictator
04-01-2011, 11:37 AM
Your problem isn't with Discover. It's with the retailer. When a retailer accepts Credit Cards, they are assigned a code (based upon the paperwork filed with the card issuer) which comes across on the electrionic transaction to the Bank/Card Issuer. If you charge it with Visa, it would still come across as a Warehouse and not a Grocery. This is how the card issuer knows a store is a grocery store, or gas station, restaurant, auto repair...whatever.

RachaelA
04-01-2011, 11:38 AM
Costco only takes American Express anyways so it doesn't matter how Discover and other cards categorize them.

That being said we only use Discover for the special 5% categories (and Marcs which only takes Discover). I hate that its only 1/4 up to X amount.

ironpig70
04-01-2011, 12:45 PM
This isn't exactly a warning for a scam. It is is in their terms....



Thats where I have a problem as its not in there terms directly. There terms says we Discover Card can decide if and when you get your points, we decide what stores you may buy from at our sole discretion and lastly we may change the rules at any time we like.


I am fine with it being in there terms if it list Wal Mart out. Thats my problem it is not listed directly.

Kathi OD
04-01-2011, 12:50 PM
Well if you can use it at Sam's Club, you're ahead of the game. The only cards our Sam's Club accepts is the debit variety.

Lewisc
04-01-2011, 01:14 PM
Not a scam. Wal Mart sells groceries. It's not a grocery store. The website is pretty clear:

Warehouse purchases (those made at select warehouse clubs, discount stores and their affiliates) earn .25%. We do not include warehouse purchases or 5% category purchases in calculating your total annual purchases. I'm pretty sure most people will agree Wal Mart is a discount store.

I suspect those stores negotiated a lower % with Discover. Discover is paid a lower fee for accepting your credit card. Discover has less money available to pay rebates.

andymattmom
04-01-2011, 01:21 PM
Your title is VERY misleading.
When you signed up for Discover you were given the terms. You didn't read like most of us....
You discover they pay less...which is in the terms you read and you call that a scam.
It is NOT a scam.
I read this thinking there was some Discover card scam going on---that is primary card I use and we are getting ready to go on vacation and I plan on using that.
Not a scam in the least---just read the terms when you get a new card. When they mail information about changes to card read that. Don't call something that is not a scam a scam.

Sorry to be blunt...but that is the truth

Green Tea
04-01-2011, 01:34 PM
Thats where I have a problem as its not in there terms directly. There terms says we Discover Card can decide if and when you get your points, we decide what stores you may buy from at our sole discretion and lastly we may change the rules at any time we like.


I am fine with it being in there terms if it list Wal Mart out. Thats my problem it is not listed directly.

Since when have credit cards ever been out to help the consumer? This is not a Discover card scam. It is pretty much the same info as any card I have ever read about since they started credit card reward programs.

BellePrincessBelle
04-01-2011, 03:49 PM
Thats where I have a problem as its not in there terms directly. There terms says we Discover Card can decide if and when you get your points, we decide what stores you may buy from at our sole discretion and lastly we may change the rules at any time we like.


I am fine with it being in there terms if it list Wal Mart out. Thats my problem it is not listed directly.

Actually it is specifically in their terms. Wal Mart is a discount store not a Grocery store. Publix is a grocery store, Winn Dixie, Stop & Shop, Giant, etc. I know because I looked it up on their website when I wanted to verify how they catagorize stores. The consumer needs to do their due diligence.

BellePrincessBelle
04-01-2011, 03:51 PM
Well if you can use it at Sam's Club, you're ahead of the game. The only cards our Sam's Club accepts is the debit variety.

All Sams take Discover Card. As a matter of fact Sam's has a co branded card with discover.

3boymthr
04-01-2011, 08:39 PM
The way that rewards cards give you a bonus is they add that extra % charge to the fee that the store pays for each charge made. The reason you don't get the higher cash back at Wal-mart, etc. is because in order to keep their prices down, they refuse to sign the portion of the contract with Discover/Chase/etc. that allows them to charge this portion back to the store. Little stores don't have the clout to refuse to sign this provision but Wal-mart and the warehouse stores do.

Minnie Lor
04-01-2011, 09:27 PM
I wondered why my last Discover rewards were off. I figured that they didn't give the bonus rewards for Walmart but didn't realize that I got less than my Chase Visa. I get a $1 for every $100 whether it's Walmart, the Disney Store, or my local grocery store.

mrspaha
04-02-2011, 11:36 AM
I agree with the others that said this really isn't a "scam", but I do thank OP for bringing this to my attention. I wasn't aware that Walmart purchases only earned 1/4%, even if you go over the threshholds that put you in a higher percentage.

In the past year or so, I've basically only been using Discover at the places that will earn the bonus 5%, so I don't even make the next "threshhold". I also do use the card at places like Walmart or major supermarkets that will give you cash back on your purchases, if I don't want to go to the bank to take out cash.

The other reason I like Discover is that when you redeem your rewards, you can redeem them for gift cards at a higher value -- example, you can get a $25 Staples gift card by redeeming only $20 worth of points.

For all other purchases that aren't in the bonus category, I'll use my citibank credit card that earns a straight 1% on everything. Citicard now also has bonus categories, so I try to take advantage of those when I can.

I've recently gotten some offers from a Chase Freedom credit card that has quarterly categories for the bonus percentages, plus a $100 or $150 bonus for opening the account, so I'm probably going to open another credit card account there.

seashoreCM
04-03-2011, 09:22 AM
Not only are grocery purchases from Wal Mart or similar stores not eligible for the grocery bonus category but some credit cards have a separate lower bonus category such as "warehouse" for Wal Mart and similar stores all the time.

Discover would be a better deal if they gave you the higher percentage for the threshold you reached, for all purchases as opposed to just the amount above the threshold.

The best credit card with rewards I have heard of (don't have one) is with Fidelity Investments. Two percent rewards on almost all purchases. Not sure how much a minimum balance you have to put in a linked stockbroker account.

NYCDiane
04-03-2011, 09:29 AM
I am so livid over this and I know many here have there card so I figured I would post up what the company is doing.

I called today because I used my card for groceries and was told Wal Mart is not a grocery store despite selling groceries. I am okay with that. I can see them doing this. I'm okay but not happy but thats life.


What I am not happy is the fact that Discover WILL NOT give you more than 1/4 percent for any and all charges at Wal Mart, Sams Club, Costco or any other place they feel is a "wharehouse" type place. Yes folks even when you spend the $3,000 annual amount you will only get 1/4% if you use the card at a wharehouse type business. What the names of said businesses are unknown as nobody is able to show or tell me where these are.

And if they are mentioned its in minature print.

First, this isn't a "scam". It's part of the terms and conditions of your card. You received them when you got your card. Read them.

Second, the reason most reward card programs don't give a large percentage on wholesale club purchases is because it's easy to spend a fortune in those places on everything from TVs to car tires to clothing to food to furniture.

If you want the higher grocery purchase percentage back, shop at a grocery store!