Feeling Pumped

We have a VISA card through a major bank and tied to a major oil company. For the many years we’ve had the card, there have been terrific rebates: 5% on gas from that oil company, 2% on meals or travel, and 1% on all else (unless you buy gas from a competitor). Easy to understand and redeemable each month with a check made out to us. So, it was no surprise when we received a mailing saying that the rebates (cash rewards) would be changed. Such is the current market. What was interesting was how obtuse the brochure is regarding the new rewards program. Some examples (with the name of the oil company omitted and referred to as “XX”):

“At XX, 15¢ in cents per gallon rebates for every $100 you spend on XX purchases.”

“On eligible travel and dining, 10¢ in cents per gallon rebates for every $100 you spend on eligible travel and restaurant purchases.”

“Everywhere else, 5¢ in cents per gallon rebates for every $100 you spend on all other purchases.”

So, you get some particular cents “in cents per gallon.” Say, what? And how are there cents per gallon anyway when you charged your Big Mac or hotel bill on their credit card? If this weren’t enough, it goes on:

“Enjoy two ways to redeem cents per gallon rebates:

1. Right at the pump – Just swipe your car at a participating station then select YES to redeem and watch your per-gallon price drop instantly. Rebates are good for a one time fill up on 20 gallons of fuel.
2. Right on your statement – Get $15 statement credit for every $1 in cents per gallon rebates.”

Don’t know about you, but all of this is a tad confusing. Now, let’s look at the fine print on the back of the brochure:

“You will earn Rebates at a rate of $0.0015 for each $1 (which equates to 15¢ in rebates for each $100) of Net Purchases made at participating XX locations, $0.0010 for each $1 (which equates to 10¢ in rebates for each $100) of Net Purchases in … travel, restaurants, and $$0.0005 for each $1 (which equates to 5¢ in rebates for each $100) of all other Net Purchases.”

Got it? So, seems that if I spend $200 a month at this oil company’s stations, I earn $0.30. And if I spend, say, $2000 on various other stuff  over the month, this would be $2.00 according to the fine print the way I read it.

But, go on the oil company’s website and put in the same information, and you can get “$1.30/gal” for a purchase of 20 gallons – sounds like $26 back. (Oh, if you only buy 15 gallons, you’ve used your full credit anyway. And you pay full price per gallon on any over 20. And, I found out with their customer service people, the “one time fill up” refers to any one time you’re at the pump and have a credit to spend.)

Going back to the oil company’s website, let’s use the same $200 and $2000 figures but ask what the credit would be on my VISA statement instead of using it for gas purchases at the pump. The answer is $15. This gets curiouser and curiouser, as Alice would say.

Frankly, I’m exhausted and looking for a replacement credit card with some simple explanation of their rewards program.