Fidelity Stops Accepting Applications on 2% Card, Promises New Card Soon

New card is now available, 2% on all purchases and runs exclusively on the Visa payment network.

Fidelity has an Amex credit card that earns 2% cashback on all purchases, and a Visa credit card that earns a tiered cashback rate – 1.5% initially and 2% after making $15k in purchases annually.

Both cards are no longer available for signup. (Link)

Fidelity promises a new card on January 4th, 2016. They refer to it as the “Fidelity 2% Cash-Back Card”, but they also say, “earn up to 2% cash-back”, indicating that it may not be a flat 2% card. It’s possible that the new card will mirror the current Fidelity Visa card and earn a tiered cashback rate of 1.5% on initial purchases, and 2% after a certain threshold.

Back in March 2014, a Fidelity representative stated that the 2% cash back rate would remain for at least 18 months, which leaves us ripe for changes now. They also indicated then that the 2% card is a loss leader of sorts.

Remember, as well, what was reported back in August that Fidelity is considering parting ways with Amex and Bank of America. I have no particular love for BofA, but having a 2% Amex card is lucrative as a means of earning $240 per year loading Serve online. It also gives us access to Amex Offer deals with the Fidelity card. We’ll have to wait and find out if the new card is Amex to see if these things will continue.

Still unknown is how all this will affect existing cardholders; we likely won’t see any changes immediately, but will get switched over some time in the future. A while back, the NYTimes heard from Fidelity that the 2% rate will remain until November 2016, at the least.

HT: pdxuser on Flyertalk

View Comments (15)