Transaction Date vs. Post Date for Spending Categories

Summary

In this video, Beefy discusses the intricacies of credit card category bonuses, focusing on whether spending counts on the transaction or post date. He shares a personal experience with Bank of America's customized Rewards Card, explaining the importance of hitting the quarterly spending limit before it resets. Beefy also highlights the benefits of the Platinum Honors tier in the Bank of America preferred Rewards program, which can significantly boost cash back rewards. He concludes with a tip to allow a buffer for transactions to post, ensuring they count towards the correct quarter.

Takeaways

• 💳 The video discusses the importance of understanding how credit card category bonuses work and the difference between transaction and post dates for bonus eligibility.
• 🗓 A transaction made at the end of a quarter may not count towards that quarter if it posts in the next quarter, which can impact cash back bonuses.
• 💰 The difference in timing can result in a significant cash back discrepancy, potentially amounting to hundreds of dollars.
• 📱 The video is sponsored by Mumu, a commission-free trading app offering free stock shares for opening accounts and making deposits.
• 🏦 The presenter shares a personal experience with the Bank of America Customized Rewards Card and its category bonus system.
• 🔄 The card allows changing of spending categories with immediate effect and offers a 3% cash back in selected categories.
• 💎 Bank of America's Preferred Rewards program offers additional bonuses based on customer tiers, with the Platinum Honors tier offering the highest rewards.
• 💼 The Platinum Honors tier requires a substantial amount of investable assets and provides a significant boost to cash back rewards.
• 🛒 The presenter experimented with spending limits to test how the bank calculates bonuses and found out that the post date, not the transaction date, determines eligibility for category bonuses.
• 🧩 There is a rounding up policy in place for exceeding the bonus limit, as demonstrated by receiving two cents instead of 1.75 cents for a partial bonus.
• 📝 The video concludes with advice to allow a buffer period for transactions to post to ensure they count towards the desired quarter's bonuses.

Q & A

What is the main topic of the video by Beefy?

The main topic of the video is category bonuses on credit cards and whether spending counts on the transaction date or the post date.

Why does the transaction date versus post date matter for credit card category bonuses?

It matters because it can determine which quarter a purchase counts towards for bonus eligibility, which could result in a significant difference in cash back bonuses earned.

What is the promotional offer mentioned by Beefy for the Mumu trading app?

The promotional offer is that users get five free shares of stock for opening an account and depositing a hundred dollars, or ten free shares of stock and a hundred dollar coupon for depositing a thousand dollars.

How much did Beefy deposit in his account to get the Mumu trading app reward?

Beefy deposited one thousand two hundred fifty dollars to get the Mumu trading app reward.

What is the category bonus feature of the Bank of America customized Rewards Card discussed in the video?

The category bonus feature allows cardholders to choose a spending category each quarter that earns a higher cash back rate, with the bonus effective the same day the category is chosen.

What is the additional bonus percentage that Beefy gets for being in the Platinum honors tier of the Bank of America preferred Rewards program?

Beefy gets an additional 75 percent bonus on top of the base cash back rate for being in the Platinum honors tier.

What is the minimum amount of investable assets required to reach the Platinum honors tier in the Bank of America preferred Rewards program?

The minimum amount of investable assets required to reach the Platinum honors tier is one million dollars.

How does Beefy use the category bonus feature to maximize cash back rewards?

Beefy uses the category bonus feature by strategically choosing the spending category and making purchases close to the end of the quarter to maximize cash back rewards.

What was the outcome of Beefy's experiment with the category bonus on his Bank of America customized Rewards Card?

The outcome was that the bonus counts on the post date, not the transaction date, and Beefy found out that exceeding the quarterly limit results in a partial bonus being rounded up.

What is the quarterly maximum for the category bonus on Beefy's Bank of America customized Rewards Card?

The quarterly maximum for the category bonus is two thousand five hundred dollars.

What advice does Beefy give for ensuring category bonus purchases count towards the correct quarter?

Beefy advises leaving around three days for a purchase to post to ensure it counts towards the correct quarter for category bonus purposes.