Ways to maximize savings when purchasing direct DVC contract.. (credit card rewards etc)

[VGCgroupie]

I've already got CSR and my wife has the CSP. We primarily fly United and both have travel cards for that airline already.

What's the next card(s) we should consider for SUBs for a possible direct purchase?

I would look into Amex Charge Cards or Capital One Venture products.

 

[Xalthon]

If you can get a business card, then you could get one of the Chase Business ones. You can transfer those points earned to your CSR and redeem for United.

 

[Steelers0854]

I've already got CSR and my wife has the CSP. We primarily fly United and both have travel cards for that airline already.

What's the next card(s) we should consider for SUBs for a possible direct purchase?

If you travel through an airport with any of the Capital One lounges I would recommend the Venture X. IMO they have the best lounges out there, they have a great welcome bonus (I think it’s still 100k) plus you get a $300 travel credit each year (booking via their portal which is actually great and you still earn loyalty points) and 10,000 bonus miles every year which completely offsets the annual fee. All transactions earn 2x, so good earning for non-bonus categories on other cards. I love it.

 

[jcolvin5]

Adding to the discussion.

We are purchasing some additional RIV points and utilizing our Disney Visa. Our guide told us that they can only stretch the payments out to 40 days now. She said this is a very recent change.

Formerly 60 days and 90 days prior to that, for what it's worth.

 

[LittleBitGoofy]

Adding to the discussion.

We are purchasing some additional RIV points and utilizing our Disney Visa. Our guide told us that they can only stretch the payments out to 40 days now. She said this is a very recent change.

Formerly 60 days and 90 days prior to that, for what it's worth.

Oh wow. They keep shrinking that #!

 

[jcolvin5]

Curious if anyone else has been told that or if it's just our guide. I'm not concerned about spacing out payments, but I took advantage of the timeframe nonetheless.

 

[Add-On-Itis]

in a few years, they will start charging 3% to use credit cards

 

[airjay75]

in a few years, they will start charging 3% to use credit cards

I only see something like that if they lost their Chase relationship. I suspect Disney has negotiated pretty low swipe fees with Chase. That said, I suppose the recent credit card settlement (if it goes through) would allow them to choose which cards they want to accept, and they could say, well, if you pay with something other than your Chase Visa, we’ll charge a fee. A lot of hurdles between here and there though.

 

[Add-On-Itis]

I only see something like that if they lost their Chase relationship. I suspect Disney has negotiated pretty low swipe fees with Chase. That said, I suppose the recent credit card settlement (if it goes through) would allow them to choose which cards they want to accept, and they could say, well, if you pay with something other than your Chase Visa, we’ll charge a fee. A lot of hurdles between here and there though.

The direction disney is going is very nickle and dime. Even if they have low swipe fee, it will still add up on a few hundred million a year swipe. When they are out of ideas how to earn an extra few %.

 

[Brian Noble]

...and i don't blame them.

Someone posted in another thread that they sold 1.7M points in November. Let's say the average price-per-point is $200, which is probably in the ballpark but a little low. That's a total revenue of $340M. What fraction of that is likely to be cash purchases? Let's say 20% (that's a Wild-A****-Guess), so $68M in direct payments that are almost certainly through a card. Even if they have swipe fees on the low end, that's still roughly 1.5%, or just north of $1M. Every single month---poof, see-ya.

Credit card swipe fees are a real cost, and they are really nothing more than friction in the system. And while I generally profit from them in the form of rewards earned on cards I pay every month in full, I understand most people don't (or can't) do that. These fees do not need to be this high for the system to be functional--in some other areas of the world they are quite a bit lower, but that's also why banks in those countries don't have generous credit card rewards. So, having a lower fee structure might cost me a few dollars a year, but it would also result in lower merchant costs across the board.

 

[airjay75]

I also think, whether they decide to curtail credit card usage in any way depends on whether they think that would diminish direct sales. Say swipe fees are about 2%. Do we think there are at least 2% of direct purchasers who might not have made the jump had they not been able to put their purchase on a credit card? Or, people who might have gotten comfortable buying a few more points because they were able to use a 0% financing on the Disney Visa or other credit card and not immediately see that cash come out of their account? I could see it. Maybe the market would just adjust over time and you’d see no difference long-term, but maybe not. If they want to recoup the swipe fees, it may well be easier to do that in a more “hidden” way.

 

[Brian Noble]

Do we think there are at least 2% of direct purchasers who might not have made the jump had they not been able to put their purchase on a credit card?

I don't. The credit card rewards are not the tail that wags the dog. I think most people make the gut decision to buy, and then they look for ways to justify the answer they want to get to. The credit card rewards are just one way to do that. There are plenty of other ways to get there.

(And yes, I might just have Ryan Reynolds' character singing "We're Bringing Back Christmas" in my head as I type that, but I wouldn't say that out loud.)

Or, people who might have gotten comfortable buying a few more points because they were able to use a 0% financing on the Disney Visa or other credit card and not immediately see that cash come out of their account?

They can still do this. And depending on what the current interest rate is, it might still be break-even or at least close. It will just cost a little more to do it vs. a bank transfer.

If they want to recoup the swipe fees, it may well be easier to do that in a more “hidden” way.

I guarantee you it is already considered when points are priced.

 

[VGCgroupie]

I also think, whether they decide to curtail credit card usage in any way depends on whether they think that would diminish direct sales. Say swipe fees are about 2%. Do we think there are at least 2% of direct purchasers who might not have made the jump had they not been able to put their purchase on a credit card? Or, people who might have gotten comfortable buying a few more points because they were able to use a 0% financing on the Disney Visa or other credit card and not immediately see that cash come out of their account? I could see it. Maybe the market would just adjust over time and you’d see no difference long-term, but maybe not. If they want to recoup the swipe fees, it may well be easier to do that in a more “hidden” way.

Cant say what others would do. But if I couldn't use a CC to purchase without paying a fee I would not have bought direct. The 90 days was also huge part of my decision. Cutting it down to 40 days would give me pause on another large direct purchase but maybe not on a smaller one.

 

[Brian Noble]

I'm sure that a few people might balk. But I have a hard time imaginging that a 3-5% difference makes or breaks the sale for the vast majority of buyers.

(Yes, I know it couild also have met a spending minimum on a card, but all but a very small handful of those are pretty easy to hit without having to manufacture a $30,000 purchase in addition to one's normal cash flows.)

 

[LittleBitGoofy]

Cant say what others would do. But if I couldn't use a CC to purchase without paying a fee I would not have bought direct. The 90 days was also huge part of my decision. Cutting it down to 40 days would give me pause on another large direct purchase but maybe not on a smaller one.

Agreed that not being able to spread out the "installments" is encouraging me more to do a smaller direct purchase on the CCV sale.

The upfront funds on 300 CCV pts in this sale is $71K+. Cramming that into 40 days of cards loading and clearing instead of 90 days or even 60 is a little intimidating.

 

[VGCgroupie]

Agreed that not being able to spread out the "installments" is encouraging me more to do a smaller direct purchase on the CCV sale.

The upfront funds on 300 CCV pts in this sale is $71K+. Cramming that into 40 days of cards loading and clearing instead of 90 days or even 60 is a little intimidating.

I would make sure you tell your guide why you decided to not do all at once.

 

[atthebeachclub]

If DVC charged a fee for credit cards, I’d have prioritized paying cash.

Credit card fees are a burden on US society IMO. I come out ahead, but most don’t.