CIBC Petro points CC to end

[walkonby]

Well I am miffed!! Big time pouty...hrmph!!
Petro Can is ending their partnership with the CIBC Petro points Mastercard.
That card gave me 2 cents off every litre of gas when I paid with it when I pumped. I combined the savings further by using my 10 cents off Fuel Savings card and have enjoyed the combined 12 cents savings.

In February when Petro Can emailed me about the end of the card I was anxiously awaiting the reveal of who the new partner CC would be. I waited and waited.
Then yesterday I phoned CS..........BUMMER!!!

It is being replaced with a stupid CIBC Dividend rewards card. Phooey!
So now supposedly when I pump I will still get a reward but instead of savings the 2 cents off each litre when pumping , they claim the cash back of 4% of what is spent ( charged to the card ) will be loaded back onto this CC.
Should I believe this is better? the same ? less than?
I wish someone could figure this out because I feel like they are playing a shell game here......ha ha get it? ( Shell? )

[bhlombardy]

Well I am miffed!! Big time pouty...hrmph!!
Petro Can is ending their partnership with the CIBC Petro points Mastercard.
That card gave me 2 cents off every litre of gas when I paid with it when I pumped. I combined the savings further by using my 10 cents off Fuel Savings card and have enjoyed the combined 12 cents savings.

In February when Petro Can emailed me about the end of the card I was anxiously awaiting the reveal of who the new partner CC would be. I waited and waited.
Then yesterday I phoned CS..........BUMMER!!!

It is being replaced with a stupid CIBC Dividend rewards card. Phooey!
So now supposedly when I pump I will still get a reward but instead of savings the 2 cents off each litre when pumping , they claim the cash back of 4% of what is spent ( charged to the card ) will be loaded back onto this CC.
Should I believe this is better? the same ? less than?
I wish someone could figure this out because I feel like they are playing a shell game here......ha ha get it? ( Shell? )

Is 2c/litre better than 4% cash back? NO. Not by a long shot.

So be miffed no longer...


Here's the math:

Fuel (where I live, in southern NB) today is $1.10 / litre.
If you used your 10c off Fuel savings card, that makes it an even $1.00/L (convenient math)

So, after that discount... if you pumped 50 litres, at $1.00/L, that would come to $50

2 CENTS OFF: if you were to save an additional 2 cents off per litre (making it $0.98/L), that would come to $49 (you'd save an additional dollar)

HOWEVER...

4% REBATE: 4% of $50 is $2.00... you're going to get twice as much back in cashback than you would have save with 2 cents.

FURTHERMORE...
The higher the gas price increases, the 4% gets larger (eg. if gas was $1.50/L, then your 4% rebate works out to be 6 cents per litre) ... however 2 cents will always be 2 cents no matter what the cost of gas is.


In this day and age of fuel prices, 4% is at least TWICE better than 2 cents. (In fact, the price of gas would have to drop to below 50 cents in order for 4% to be a lesser value)


That's *ahem* MY two cents, anyway....

[walkonby]

^^^ OMG! thank you! I could not figure it out. I think it is because I have a disdain for CIBC period ( I never wanted ANY CIBC products ) so did not even want their original MC, but they took over Petro Cans original Citibank card.
Anyways!! thanks again!!
Woo hoo.

[bhlombardy]

^^^ OMG! thank you! I could not figure it out. I think it is because I have a disdain for CIBC period ( I never wanted ANY CIBC products ) so did not even want their original MC, but they took over Petro Cans original Citibank card.
Anyways!! thanks again!!
Woo hoo.

I was speaking from experience as I have a Scotiabank card that pays back 4% on fuel as well. I sat down and did the same math on my card. Like you and CIBC, I have no use for Scotiabank but I consume a LOT of fuel (about $125/week), so this card is a benefit to me. So, I'm glad I could help


So welcome to the 4% fuel club.... Here are a few additional things worth considering with your new card:


FIRST: YOUR CHOICE... The new CIBC Dividends card will not be as restrictive as to where you can use it. SO, you now have the freedom to buy your gas at other stations where you can not only get your 4% but also dip for AirMiles at Shell, for example ... or at Esso if you collect AeroPlan miles, etc... or keep earning Petro Points at Petro Can... so you'll get rewards on top of cashback


SECOND ... is this card FREE?: Most cards that give you 4% back on fuel are about $99/year. (My Scotiababank Visa is) so be sure you're not getting roped into a $99 annual fee. If you don't expect to get $100 annually back on fuel, then this card is going to cost you money for no reason. [The math here is that you'd have to spend about $50 on fuel every week for the entire year with this card to get 4% back to get $100 just to break even on the $99 annual credit card fee]*

HOWEVER, in all likelihood, this card may be free for at least the first year (waiving the $99 fee to get you hooked on using it.) Check those terms ... just remember to call and cancel the card during your 11th month if you want out of paying the $99 for the second year.

*[Aside: If it's the same CIBC Dividend rewards card I am thinking of, you might also get 4% back on groceries too, so if you use there also, spending $50 on fuel AND groceries combined each week might not be so hard to accomplish.]


THIRD: ALWAYS ALWAYS ALWAYS pay at the pump with your new dividend card (or any cashback card that rewards you for fuel). Here's why: Many gas stations are also convenience stores... and those stores are most often independently owned and operated... and thus have their own separate credit/debit machines at the register, in addition to the one provided by the fuel partner (eg. Shell).

99% of the time the store operator (in my experience) will use their OWN credit/debit instead of the fuel one because it is of a greater benefit to them financially... and they train their staff to do this. When they do this, then your credit card will NOT see it as a fuel purchase, but instead see it as a convenience store purchase, and you will NOT get your 4% fuel rebate.
Instead, the pay-at-the-pump option is ALWAYS tied into the fuel partner's system, and thus will always count as a fuel purchase toward your 4% fuel reward. If you indeed want/need something from inside the store, pay for it separately. (I learned this the hard way) -- and at Shell partner stations, I can swipe my Visa AND my airmiles at the pump so I dont miss out on the points too.

And remember, if there's a promotion to bait you into going into the store to buy goods with your fuel and collect bonus miles/points... don't do it! You'll most likely lose your fuel reward. Always remember the 4% cashback on your card is ALWAYS more valuable than a few extra points.
(NOTE: Some stores ARE corporate owned but it's seldom clear on that distinction so I don't take the chance)

[walkonby]

^^ such great tips! thank you @bhlombardy

I have never paid to use any CC , so IF CIBC has this as a condition I will not activate it when it arrives.
Wow about paying at the pump!! ( I always do that anyways, just hate wasting the trip into the store ) but I was not aware of that practice of them using their own convenience store machines.

Now an update:

I phoned PetroCan CS and was told I can still use my current CIBC card until AUGUST??
( meanwhile that is not how CIBC framed it....they said May )
But PetroCan said that as long as I don't " activate " the new card they send me I can still use the old one.
( They said I would still earn the 2 cents off a litre and also get the extra points that come with the total amount purchased each month. )
AND that Petro Can is planning another card roll out that will have great benefits to loyal users??

So....now what to do? Wait till August to see who/what the new CC is that will partner with them?
making my life more complicated!!

ha ha