US Airways Debit Card Discontinued Effective 9/30/12

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This is hardly surprising given that many other mileage earning debit cards have gone away in the past year or so, but I was a bit sad when I got a letter in the mail today from Bank of America informing me that as of 9/30 the US Airways debit card will be replaced with a regular old Bank of America debit card.  Card holders will receive a prorated refund for the $30 annual fee.  This card earned one US Airways mile for every two dollars charged on the card.  I haven’t used this card in months, but it is a loss for two reasons.  First, not everyone is a good candidate for a credit card, so a debit card that earns miles was a good option for some.  However, the reason I will miss the card the most is it was an easy hit in the US Airways Grand Slam last year.

So far in March we have lost Hyatt as a US Airways transfer partner (and thus as a hit in the Grand Slam) and now the US Airways debit card will become extinct.  Since the card does not technically go away until 9/30, it is always possible that its use will still be counted if there is a Grand Slam that starts earlier in September this year.  Then again, it is also totally possible that US Airways won’t have interest in promoting the use of a card that is about to go away. Of course, there are no guarantees there will even be a Grand Slam, but let’s hope that does not happen!

 

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  1. Does it mean that if I apply for the card on say 3/30, I will have to pay $15 in annual fees on prorated basis? If I remember correctly, this card gives a 3000 miles first use bonus. So it effectively means 3000 miles for $15? This can probably be even better if I apply couple of months further down the line. Am I correct or thinking too much?

  2. With CHASE eliminating the debitcard mileage earner option, is there a bank out there offering miles for debit card purchases?

  3. There are still a handful of debit cards with rewards programs attached but to my knowledge all the more expensive ones (cash back, airline affinity) are gone or going away. As Gary said on his blog, you can thank the wonders of the Durbin Amendment.

  4. Got mine during last year’s GS. Debating now whether to cancel and get a refund of $15 of the annual fee. I think I’ll hold on to it, just in case it could generate a $15 hit.

    • @Dawn, it is a promotion put on by US Airways in the fall the last few years. It is a great way to rack up miles for purchases with their partners.

  5. This is the inevitable outcome of “the Durbin amendment” last year, which imposed price controls on debit cards accepted at merchants. most debit cards are now money losers for banks, even without rewards.

    even if the next congress reverses the Durbin amendment, I doubt if banks will rush to resume rewards on debit cards. Too much regulatory meddling and interference.

    By the way – everyone who feels that retailer prices went down as a result of the Durbin deal (which was the whole point) raise your hand. What? Nobody? Then I guess Walmart and every other store is just pocketing the money themselves, eh?

  6. Does it mean that if I apply for the card on say 3/30, I will have to pay $15 in annual fees on prorated basis? If I remember correctly, this card gives a 3000 miles first use bonus. So it effectively means 3000 miles for $15? This can probably be even better if I apply couple of months further down the line. Am I correct or thinking too much?

    • @Chris, my understanding is it is too late to apply for the card now, but the fee is prorated if you cancel now. I may be wrong, but that is my understanding.

  7. Due to extensive travel I’m kinda late with my question.

    I loved the above mentioned card, especially where no CC was accepted, but still would earn Dividend Miles and I’m sad to see it go the way other pin-based mileage earning DC’s did.
    But it was to be expected.

    However, I cannot find any info about termination of BofA’s last mileage earning DC, namely the Alaska Airlines Mileage Plan DC.
    On their website it’s still being offered with a sign-up bonus.

    Any news with regards to this particular card ???

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