Updated BP Visa with Pump Rewards from Chase
As many drivers realize that high gas prices are here to stay, they are turning to their credit cards in order to find whatever savings they can. Sometimes these savings come from credit cards that offer cash back or other rewards for purchases from any fuel retailer, while other cards are affiliated with a particular chain of service stations. Chase offers its BP Visa with Pump Rewards in order to help cardholders to enjoy some savings at BP gas stations.
Features
New cardholders will receive 25 cents per gallon in savings for each $100 in purchases from all retailers except competing non-BP gas stations. Rebates will offset the one time purchase of up to 20 gallons of gasoline, but can only reduce the per gallon price to a minimum of 10.9 cents. After 60 days, each $100 in spending will earn a 5 cent per gallon discount on a single purchase with the same terms. Alternatively, customers can earn a $15 statement credit for each dollar earned in cents per gallon credits.
The BP Visa does is not a 0% APR credit card, thus the starting and long term standard interest rate is equal to the Prime rate plus 15.99%. There is no annual fee for this card but there is a 3% foreign transaction fee on international credit card charges.
Analysis
Underneath its complicated reward formula is the opportunity to earn some rewards. During the first 60 days, cardholders will earn 25 cents in discounts for each $100 spent. Since the discount is only applied to the first 20 gallons of a purchase, the maximum discount is five dollars per $100 in spending, or the equivalent of 5% cash back. Thankfully, there is no annual fee for this card.
Not only is the rewards program unduly complicated, it returns, at best 1% cash back. This is the case since a five cent discount on twenty gallons is equal to only a dollar in savings for every $100 charged. Of course, if the cardholder’s vehicle holds less than 20 gallons, or is not nearly empty when filled up, the savings are even less. Likewise, if the cardholder chooses a $15 credit for each dollar in “cents per gallon rebates”, only .75 cents in rewards are earned per dollar spent. This is a truly substandard rewards rate. In addition, there is no promotional financing offer with this card.
After the first 60 days, it is impossible to earn more than 1% in value from this rewards card. Therefore this card is only best for people who are looking for a reward credit card, but don’t care about maximizing the amount of rewards received.
