Transaction Date vs. Post Date for Spending Categories
Summary
TLDRIn 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
- π³ The video discusses the importance of understanding how credit card category bonuses work and the difference between transaction and post dates for bonus eligibility.
- π 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.
- π° The difference in timing can result in a significant cash back discrepancy, potentially amounting to hundreds of dollars.
- π± The video is sponsored by Mumu, a commission-free trading app offering free stock shares for opening accounts and making deposits.
- π¦ The presenter shares a personal experience with the Bank of America Customized Rewards Card and its category bonus system.
- π The card allows changing of spending categories with immediate effect and offers a 3% cash back in selected categories.
- π Bank of America's Preferred Rewards program offers additional bonuses based on customer tiers, with the Platinum Honors tier offering the highest rewards.
- πΌ The Platinum Honors tier requires a substantial amount of investable assets and provides a significant boost to cash back rewards.
- π 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.
- 𧩠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.
- π 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.
Outlines
π³ Understanding Credit Card Category Bonuses
In this paragraph, the speaker, Beefyboys, introduces the topic of credit card category bonuses and the importance of transaction posting dates. He discusses a hypothetical scenario where a category bonus is missed due to a transaction date versus posting date discrepancy. The video is sponsored by Mumu, a commission-free trading app offering stock bonuses for new accounts. Beefyboys shares his personal experience with the Bank of America customized Rewards Card, highlighting the ability to change spending categories for bonus rewards and the benefits of the Bank of America preferred Rewards program, especially the Platinum honors tier, which offers significant cash back bonuses. He emphasizes the importance of understanding the nuances of cash back rewards to maximize benefits, using the example of a laptop purchase that exceeded the cashback limit.
π Transaction Posting Dates and Category Bonuses
The second paragraph delves into the specifics of transaction posting dates and their impact on category bonuses. Beefyboys recounts an experiment he conducted with his Bank of America customized rewards card, where he attempted to maximize the quarterly category bonus but faced uncertainty due to the transaction posting on the following quarter's date. He explains his thought process and the steps he took to determine whether the spending counted for the current or next quarter, including making additional purchases to test the system. The paragraph concludes with the discovery that Bank of America rounds up partial bonuses and confirms that the card's category bonuses are based on the post date rather than the transaction date. Beefyboys advises viewers to allow a buffer period for transactions to post to ensure they count towards the desired quarter, thus maximizing the use of cash back bonuses.
Mindmap
Keywords
π‘Category Bonuses
π‘Transaction Date
π‘Post Date
π‘Cash Back Bonuses
π‘Mumu Trading App
π‘Bank of America Customized Rewards Card
π‘Platinum Honors Tier
π‘Investable Assets
π‘Quarterly Max
π‘Rounding Up
π‘Churning
Highlights
Beefy discusses category bonuses on credit cards and their importance in maximizing cash back.
Spending counts on the post date, not the transaction date, for category bonuses.
A hundred-dollar difference in cash back bonuses can result from the timing of transactions.
Mumu, a commission-free trading app, offers free shares of stock for new account deposits.
Beefy's personal account experience with Mumu, including a $100 bonus from purchasing shares.
Bank of America's customized Rewards Card allows changing categories with same-day effect.
Platinum honors tier in Bank of America's preferred Rewards program offers a 75% bonus on top of cash back.
Investable assets, not cash savings, determine the eligibility for higher reward tiers.
The importance of understanding credit card bonus structures to avoid missing out on cash back.
Beefy's experiment with the Bank of America customized rewards to test the quarter limit.
The significance of the post date in determining which quarter a purchase counts towards.
Beefy's strategy to maximize cash back by spending close to the quarter's end.
The rounding up of cash back bonuses when exceeding quarterly limits.
A safe bet is to allow three days for transactions to post to ensure they count towards the right quarter.
The impact of shifted category bonuses on the ability to spend more on rewards.
Beefy's conclusion on the mental exercise required to maximize cash back rewards.
A call to action for viewers to like, subscribe, and engage with the content for more insights.
Transcripts
how's it going everybody this is Beefy
boys today I'm going to talk about
category bonuses on credit cards and
whether if you're spending counts on the
transaction date or the post date let's
say you didn't spend anything on a
category bonus and right at the end of
the quarter you're trying to get it in
and let's say you spend it on June 29th
but then it doesn't post until July 1st
would this count towards the previous
quarter or the next quarter this matters
a lot and ultimately this could mean a
difference between about a hundred
dollars difference of cash back bonuses
this video is brought to you by Mumu the
commission free trading app get five
free shares of stock just for opening up
an account and depositing a hundred
dollars if you deposit a thousand
dollars you can get 10 free shares of
stock and a hundred dollar coupon
towards the purchase of a thousand
dollars or more of stock interestingly
in my own personal account I also get
this reward I personally decided to
deposit one thousand two hundred fifty
dollars so that I can buy four shares of
voo each share is about 400 so I get a
hundred dollars for you just from this
purchase if you can invest more you
deposit five thousand dollars you can
get either a free share of Tesla or
Google stock check out my referral link
down in the video description below I
did this test on my Bank of America
customized Rewards Card recently I've
been trying to spend more money but at
the same time I don't want to lose out
on all the cash back honestly I'm going
through all my credit cards and I might
be almost maxing out all the available
cash back here this card allows you to
change the category and it will be
effective the same day you can choose
between online shopping gas dining
drugstores Home Improvement and
Furnishings travel which covers a lot of
categories now it says three percent but
you can tack on additional bonus on top
of this this is largely through the Bank
of America preferred Rewards program and
if you're in the Platinum honors tier
you get 75 percent on top of that three
percent so this really means you get
5.25 this is something you can use
year-round as long as you keep on
choosing that particular category for
their Platinum Awards tiers they have
gold tier Platinum tier Platinum honors
tier and I think recently they added
this diamond here where you need to have
a million dollars of investable assets a
lot of people are mistaken that when it
says oh you need a hundred thousand
dollars sitting in cash it's not cash
that you're putting in here that you
would have earned high yield savings
account of you know like four percent or
something this is invested money so this
means that if you have in another
brokerage account it's that are after
tax so if you have you know a hundred
thousand dollars worth of let's say vo
stock market index funds you can
transfer it in and right there you can
get the Platinum honors tier out of all
these tiers the best thing is to look at
the credit card bonus here and you get
75 percent bonus on top of whatever
percentage that you get for those credit
cards and as long as you get in this
Platinum honors tier it works for all
your credit cards so if you have an
unlimited rewards that has 1.5 percent
well you get another 75 on top of that I
have that card right here it's the
unlimited cash rewards is this gray
color and 75 percent on top of 1.5
percent is
2.625 for non-category purchases like I
just filed this in as everything else
normally I would use the Citibank double
rewards that gets two percent this card
you can basically buy anything and get
2.63 including stuff for credit cards
that's not typically in a category I
like to get into the Nitty Gritty of
these cashback rewards because
understanding it allows you to take the
most Advantage out of it I remember I
had a credit card that gets five percent
on something and I decided to buy a
laptop on it and it turns out that
there's a limit to the cashback that you
can get so I bought a laptop I hit the
limit at like fifteen hundred dollars or
something and then the rest of it I did
not get a bonus so if you're not careful
and go way over you would miss out on
hundreds of dollars of cash back bonuses
so I actually accidentally did a trial
experiment on my Bank of America
customized rewards the category Glory
bonus is twenty five hundred dollars
every single quarter so then I Max it
out I purchased two thousand dollars at
first this is the limit that you can buy
so then I have to add on another 500 on
top of that so that's why you see on the
transaction day June 30th I had a two
thousand dollar purchase of Amazon gift
cards and then the same day I had a five
hundred dollar purchase now this is
quite good if you're about to buy like a
TV or something right a couple thousand
dollars five point two five percent on
two thousand dollars is a hundred and
five dollars cash back right there if
you get five point two five percent on
everything you buy and you keep on
consistently doing this it it adds up
very very quickly so the interesting
thing here is the post date is on July
1st which is one quarter after I try to
use all available cashback in Q2 for
that particular card that's why I rushed
to go okay I'm gonna spend 2500 on it
real quick but then unfortunately the
first purchase of two thousand dollars
did not post until the next quarter
interestingly the 500 did post and it
did count for Q2 so then I sit here and
I'm like I spent twenty five hundred
dollars did all this count towards Q2 or
Q3 do I have to call up customer service
and ask them spend like half an hour on
the phone after mulling over a little
bit I'm like okay let me just do a
little test let me just spend another
500 because if the two thousand dollars
were accounted for Q3 I have 500 left
right so I just need to buy 500 more of
Amazon gift cards and then add a little
bit on top of that so that's why you see
this 501 and if I get 5.25 for that one
extra dollar I would know that I did not
go over the limit for Q3 it says partial
bonus purchase exceed twenty five
hundred dollars quarterly Max for 500 I
get 2625 in cashback which is 5.25 for
501 I get
26.27 so I only get two cents for that
one extra dollar this represents two
percent now they don't give partial
sense in bonuses right so it looks like
they round up if I exceeded the
quarterly limits I should have gotten
1.75 for that one dollar which means
1.75 cents so they actually rounded up
and gave me two cents so this is kind of
like a Nuance type of thing it's
interesting to know that they round up
in these instances and that when you're
trying to spend on these category
bonuses for Bank of America cards it
counts on the post date not the
transaction date so if you're rushing to
fill up your category bonuses I think a
safe bet would be to leave around three
days for it to post sometimes I've seen
purchases at grocery stores it can take
as long as three days or so so two
thousand dollars of shifted category
bonus is quite significant if I were to
made this two thousand dollars in Q2
well this quarter I would have added
another two thousand dollars I would
have more to spend on Amazon I hope this
video helps you guys out it's an
interesting mental exercise I think
spending on category bonuses and all
this churning of cash back rewards it
does take some mental power I hope you
guys enjoyed this video and know a
little bit more about how to use your
cash back bonuses thanks for watching
this video don't forget to give me a
like And subscribe for more
thank you
[Music]
Browse More Related Video
How Credit Cards Were Invented
Introducing Apple Card
My FAVORITE Credit Cards | Your Rich BFF
What Credit Cards You Should Have by INCOME? [Detailed Review]
Best Credit Cards for Beginners || Best FD Credit Card || Best Credit Card for Students
Kotak League Platinum Credit Card Full Details | Benefit | Eligibility | Fees
5.0 / 5 (0 votes)