I am not very excited about this. What about those customers that had a $5,000 balance? And no more Mastercard Giftcards? I knew this was coming eventually, and I am sorry to see PerkStreet is changing. I hope nothing else big changes, but I fear it will. What a bummer. 

I’m sure this is good for a lot of people, but I’m disappointed that I will lose the ability to get 2% on everything. Now 90% of the places I shop will only get me 1% back- and when I want to redeem my perks for cash, I have to use an additional $2 in perks.

If you do get up to the $5K will you still earn 2% on everything?

The $5,000/2% thing is still in effect, they just added more options for people below $5,000 to get 2%.  Read bullet number three “2% for in-store purchases at those retailers when your balance is above $5,000″

Thanks Scott, 
This software is something we’ve been working on for a while, and we’re really excited to see it taking shape internally. Having customers test it live recently has been exciting to say the least. Many of them have had really valuable feedback about how to improve it. While we don’t have a launch date set yet, we are psyched about this!

-Kyle

Kyle Psaty
PerkStreet Financial

Or am I wrong in my understanding again? I’m confused!

Yes. You’ll only get the 2% at those 4 stores (which I personally shop at very rarely.) Count me among the disappointed. 

So we no longer need to keep $5,000 in the account? 

I kinda feel like I’m getting punished for being a responsible adult who lives within my means. Every grown up should have at least 5K in savings.

Many of my purchases come from Wal-Mart or Amazon, so it isn’t a complete loss. I’m disappointed, but even with this change I’m more satisfied with Perkstreet than with my old bank.

Not excited here either.  And unless PS has an unusually conscientious customer base who never OD their account, I think the increase in OD fees could cover the loss of discount for the cash cards so they could continue giving back cash equal to retail card dollars. 

Sorry if I confused you, Byron! Having a $5K balance will earn you 2% cash back at Walmart, Target, Best Buy and Apple Store only. The other 2% earning now applies to everyone: 2% online at walmart.com, target.com, amazon.com, bestbuy.com, apple.com and itunes; AND 2% when you Spend With A Friend at the same restaurant, bar or coffee shop. I hope this clears things up.

-Kyle

So to be clear, if you have $1k in your account, but shop at amazon.com. You’ll still get 2% cashback with the new system right?

That seems to be correct.  Withdrawl all your money!

Count me among another very disappointed user. I recently joined PerkStreet specifically because of the 2% rewards. I absolutely understand your reasoning and it make business sense. But I’m one of the 10% that can maintain the $5K. Unfortunately, it looks like PS may be losing my business and I will go back to getting rewards from my AMEX card.  

Absolutely right, Josh. This is part of how most of our customers will earn more. If you have just been earning at the 1% level (by say having a $1K balance), you can now get 2% at major online retailers too! Plus, did you catch the unlimited 2% for all customers when they Spend With A Friend? 

-Kyle

Laura’s right guys. A $5K balance will now let you unlock in-store 2% at the same retailers everyone gets 2% online at now.

-Kyle

boo

I add my disappointment to that expressed by the others. Friday I saw that Ally.com offers a 1% perk (though I’m not sure it is with every retailer) and .75% interest, with no minimum deposit, which would be a better deal than PerkStreet. I’ve been testing out PerkStreet for nearly 3 months before deciding whether to recommend it to my Financial Peace University classes. Your changes will put my positive recommendation on hold.

I do like the idea of having the perks deposited into my account as cash. That was another favorable perk at Ally.

I’ve been playing with the envelope system.  The envelope system still has a few kinks (I have one envelope that I can’t seem to delete, need the ability to reorder the list without deleting them and adding them back in), but it will be awesome if they can get it “real” time. 

I too find the 2%/$5000 and Mastercard loss disconcerting.  It does make my savings goal a bit of a lower priority.  However, it seems like it’s a good business move for PS and the **majority** of it’s customers.    Perhaps there will be some good perks for savings when the time comes that will minimize the losses for those customers.

I appreciate PS being transparent and explaining the need for the changes.  We need to remember that PS is a bank, a company–and not a Non-for-profit.  That being said, the majority of us are still better off at PS than with our bank or credit union.

Hey Autumn and Eric, 
PerkStreet will still be offering every one of our customers unlimited 1% cash back on all non-PIN purchases. PerkStreet will still be free to get and free to use. 

We want what’s best for you, so if you shop around and find another account that’s better suited for your needs, we’re sorry to lose your business but we do understand.

However, we believe that even with these changes PerkStreet will be the most awesome debit rewards program available. To be sure, 90%+ of our customers will be earning MORE as a result. We hate disappointing you, but we do feel good about offering more perks to more people for spending responsibly– It’s why we come to work each day.

-Kyle

Kyle Psaty
PerkStreet Financial

Steve, Susan and Laura, 
You guys are correct. Thanks for helping out by explaining this to one another. -Kyle

Very disappointed by this.  1% is not enough to encourage me to use the card as opposed to cash, particularly for things like gasoline where many if not most stations charge 2-3% more to use a card.  Guess I’ll be moving some of my purchasing categories back.

Thanks for the response Kyle, I greatly appreciate the official clarification.  I know changes like this are going to receive negative/harsh criticism (as I’m one of them, being a new member)…however I’m sure everyone hear appreciates you making a presence and responding to the comments as well, as well as providing the background for the decision.

For myself, I will definitely no longer be keeping the $5k minimum in my account, as it’d serve me more benefit in an interest bearing account.  However with the 90% number you cited, that makes sense from a business standpoint for yourselves.  So while it negatively affects me, it sounds like you guys are doing the right thing for your business, so kudos!

PS.  Could I ask one more clarification point about the paypal change? Are paypal *purchases* going to be exempt from cashback now?

I am another dissappointed customer.  Instead of changing the program and harming the existing “2% customers” (like myself), why wasn’t the bar just lowered from $5,000 to $2,000?  This seems like a much easier way with accomodate the 90% without harming the 10%.  I was a cheerleader for PerkStreet,  but this new change has me second guessing my previous statements.

As a big amazon.com shopper I’m a fan of the change, I’ll definitely make some additional perks.

What I’m still anxiously awaiting, however, is the iPhone app that will allow me to deposit checks remotely, I’m still hanging onto BoA so I know I’ve got quick access to checks I deposit. I know that’s been in the works for a while, any timeline there?

 I absolutely agree. While I appreciate that the new reward structure is great for most PerkStreet customers and respect the decision to give most of us improved rewards, it really disappoints me to see such an incentive for shopping at big-box stores. As much as I can, I make it a point to shop at local, independent businesses, which as MJ notes, really need the business.

I, for one, am very excited about this!  We do have more than $5K savings, but we keep it in a high yield savings account.  Since I do shop at those stores, it will really earn me more.  Thanks for thinking of the 90% of us.  I know others are bummed, but it is still a great program!

I think increasing the OD charge is a really good idea. Nobody should be paying those unnecessary fees. We should all be watching our bank accounts closely. It’s our hard earned money, and we shouldn’t give it to the banks. This fee will make it hurt a little more, which will help me pay closer attention.

It’s almost impossible to believe that the explanation given for this change is genuine.  Another way to look at the 90%-aren’t-receiving number is: 10% of PS customers *were* receiving 2% on everything.  By removing the 2%-off-everything option and switching to 2%-off-online-shopping, PS is broadening perks to everyone, but it’s diluting the size massively. 

How many people could there possibly be for whom more than, say, 10% of their credit card spending is at Amazon?  Think about only just food+car insurance.  Amazon spending is a tiny, pointless drop in the bucket.  I would be shocked if this change doesn’t improve PS’s bottom line.  Sure, they will now pay 2% to 100% of customers at Amazon, but Amazon shopping is almost definitely <10% of the average customer's credit card spending, whereas up until now they were paying 2% off 100% of spending for 10% of customers.  I think the real question PS was asking themselves was: what will we do if our 2% customers grow to, say, 20% of all users?  And this was the preemptive response.

I’m really excited about all these changes. I think they are fair and will help out 90% of the customers which sounds like a win-win. IMO PerkStreet still beats out the other traditional banks, with these reward perks, customer service, and the addition of their new envelope type financial software!

Great job guys, really looking forward to all the changes taking affect. I’m also excited about the app release.

Do the 2 cards have to be linked to 2 different Perkstreet accounts?

Looks like it’s time to move my money elsewhere.  I can earn 1% anywhere.  Without the risk of using a Debit card.  Sad to see perkstreet join the herd. 

This is such bad news…

Ugh. I hate having to remember what card to use for certain situations. Perkstreet made it simple. 2% cash back on everything.

I used to use various credit cards that offered between 1-5% cash back. My “rewards” on average from the credit cards were just slightly higher than with Perkstreet (only $60/year difference). The primary reason I switched to PerkStreet and the reason I love it so much was for the unlimited 2% cash back on all purchases. I didn’t have to remember what card to use for what store, plus I didn’t have to use credit. It was definitely worth it to drop the credit cards and switch. I’ve also encouraged countless others to make the switch.

I don’t shop at the special retailers listed in the 2% category. This change basically cuts my perks in half. There’s no incentive for me to keep my balance above $5,000. I’ll probably just pull my money out and go back to credit cards.

Very disappointed…

Hey Bek, 
If you have a daily starting balance of $5K or more, you were (and will be for the next month) able to get 2% cash back in-store and online at those stores and others, yes. After the change, it’s 2% online at those select merchants regardless of balance and in-store if you keep the $5K in the account. I hope this helps. 

-Kyle 

 ”I cannot tell you how frustrating it is for us to disappoint you with
this news. As I pointed out above, we certainly haven’t forgotten about
you and your fellow $5K+ depositors. With your $5K balance you’ll now be
able to unlock in-store 2% at Walmart, Target, Best Buy and Apple.”

If I remember correctly, I’ve always been able to get 2% at those retailers, so this is a non-issue.  I cannot tell YOU how frustrating it is that I am being punished (you can disagree and call it whatever you want) because I happen to have $5k in the bank.  I can’t complain too much as I’ve earned $700 since July, but since unlimited 2% was why I switched banks, I’ve got some decisions to make.  I understand that your value me as a customer and all that, but this is discouraging. 

Guess I had a good run and should realize that there was a reason it seemed too good to be true.

If you really wanted to help those people who couldn’t get to the $5000 balance you would have lowered the balance to $1000, not take the benefits away. This card was useful to me, but now it won’t be. I will be closing my account when the new changes take affect. 

 I was also a cheerleader for PerkStreet.  No longer.  I’m going back to Discover where I also get 1% back.  I rarely shop at the stores listed.  I pay off Discover every month so there’s no fees/interest like I did before PerkStreet.  Discover also offers 5% cashback partners.  Best of all is that I don’t have to leave $5000 in a checking account earning 0%.  See ya PerkStreet…

Eh. I don’t mind it. I tried keeping $5000 just to get my 2% perks back, but to me it made more sense to keep the $5000 in a mutual fund and make more money there than I ever would with perks. I had an 11.4% YTD so far…

Love the 2% with Amazon since it’s where I do most of my online shopping anyway. Love the ability to redeem perks as a statement credit.

Only thing that worries me are changes. As someone here said…this was too good to be true for it to last. Though even with changes this still remains pretty much the best debit card alternative. 

You stated above to PSme that you will now be able to unlock instore 2% like it was going to be a new thing!?   So this was just a lil confusing.

I am sure many of you who are frustrated by this change learned about PerkStreet through Dave Ramsey. I know I did. I have contacted Dave to see what he thinks of this. I doubt he will promote this card anymore. 

I would prefer to stay with the current system.  I am currently earning 2%, and would earn less with the new program.  Please consider allowing customers to opt-out of the new program, so they can stick with 2%.  Thank you!

Kyle, is there an annual limit on cash back for in-store purchases at those 4 retailers when your balance is above $5,000?

I definitely do not like this change.  I am one of the few customers who keeps a $5,000 balance so that I can earn 2% on all non pin purchases.  I feel the new program is not very beneficial and when compared to the 5% discount you get at Target by using their card, why would I use my PerkStreet card?  How about adding gas stations to the 2% pool?  It’s great that you are adding benefits to those with balances below $5,000 but why are you taking them away from those with $5,000 balances or more?

Once this new program takes effect, the few “perks” of keeping a $5,000 balance are definitely not worth it.  I am considering moving my excess money elsewhere and just keeping a minimum balance at PerkStreet for my monthly expenses.  Somehow I was afraid this program was just too good to be true and Dave Ramsey would not be proud of you guys for changing the rules in the middle of the game.  I hope you reconsider this change.  I have a feeling many will be disappointed just as I am.

I am extremely, extremely disappointed by these changes.  As someone who has worked hard to keep the $5,000 minimum balance in order to get the 2% cashback, I will lose on the new program.  I don’t understand why they had to penalize the individuals who were working for the 2%.  As of April 4, I will no longer be using my perk account.  Basically it would be more work to keep track of my purchases at Wal Mart and Target to get a 2% then use another card (of which there are plenty out there) that gives a 1% cashback.  I also am not happy with the loss of the Mastercard usage.  In effect my cash back becomes what Perk wants it to be rather than what I want.  I became a customer of Perk in October and now wish I had not gone to all of the trouble!

Too bad.  The 2% made it worth driving to the UPS store and waiting for my account to be credited.  Far less excited about Perk Street.  Big BUMMER. You guys need to go back and do some fine tuning to accommodate the $5K folks. 

Kyle and Team,

I loved being a PerkStreet customer for the past 8 or 9 months and truly enjoyed earning an unlimited 2% on all non-PIN purchases. There’s very little differentiation in the retail banking industry, but you found a way to offer something compelling. I told countless people how great you were. 

Today’s news is disappointing. PerkStreet is no longer the place where I can earn the most cash rewards.

I understand that many of your customers are better off with this change. But for me, I think it’s time to switch.

Regards,
Ryan

There’s not a lot that I can say that hasn’t been said below.  However, I will add that I’m glad the email announcement included the CEO’s email address.  I’ve never been one to send email to company executives, but I am incensed, so I sent the following:

Dear Mr. O’Malley,

I am a relatively recent customer of
PerkStreet and Bancorp Bank, having just completed my switch from
another card about a month ago.  I was a card member of my previous card
for more than ten years, and I did not switch lightly, but I was
compelled by the 2% value proposition.  I was impressed with your
customer service, and had no concerns about managing my minimum balance
to ensure 2% on all purchases.

I am writing to let you know that as of April 4, I will no longer be
a PerkStreet card member.  I am disappointed that you were unable to
find a way to make this benefit financially viable for your company, and
while I would have been willing to accept any other change in benefits,
nothing remains that is compelling enough to make me remain a
cardholder.

Sincerely,

Joshua Koppelman

Wilesre,
We will certainly miss your deposit amount, but we’re glad to hear this is still the best checking account for you. Hopefully you’ll consider keeping the $5K with us to unlock 2% cash back in-store at Walmart, Target, Best Buy and Apple Store. But if that doesn’t make sense for you, be sure to shop around and find a savings account that offers you a return you feel good about. Here’s a recent blog post explaining the different kind of savings vehicles you might want to check into: http://blog.perkstreet.com/the-long-and-short-of-savings-how-to-choose-the-right-type-of-account/

-Kyle

I was telling my husband how wonderful it would be to have PerkStreet but with this I am dissapointed, I buy a lot at Target, but I use their debit RedCard and I get 5% discount on every purchase and free shipping, so I don’t care about getting just 2% cash back with PerkStreet since I don’t buy in any other store listed, such Walmart. So it won’t be convenient for us at all. We are still saving money and that won’t change, but I feel that like any other business you are looking for big profits, so it is understandable.

So it’s only the 2% that has an annual limit, and the 1% on non-PIN is separate from the 2% earnings and is unlimited on the amount you can earn?

Can someone please explain to me how in order to have my cash back deposited into my account I have to SPEND AN ADDITIONAL $200. $200 to offset a transfer fee? Really? 

I’m sure this makes business sense for you, but I don’t intend to keep a large balance with PerkStreet anymore. I’m afraid you will see a large dwindling in your balances.
The trade off of the longer deposit times and and other inconveniences of not having physical banks was offset by the rewards. Not so anymore. I have a card through a bank that is within walking distance of my house which will give me at least 1% cash back everywhere, 5% quarterly categories (not single stores) and up to 20% at online retailers, without all of the other inconveniences. 

Perhaps you truly are attempting to help the 90%. However, in doing so you will probably lose a large amount of 5K balances. Expect to see more $300-$500 accounts. 

Another disappointed customer who is feeling punished for being responsible with money.

Wow, I am totally leaving PerkStreet now. I joined for UNLIMITED 2% anywhere. Now it’s a LIMITED 2% at just a few places. I already have two other 1% cards with 2%, 3%, and even 4% categories all the time! Plus I don’t waste the opportunity cost of $5000 to $7000 all the time, which is what I have had to keep in my account in order to ensure I didn’t go below $5000. How about give people the option to choose the higher or lower program? Anyway, if this decision stands, I’m out.

You are changing to a model that is more like Upromise, except with Upromise has hundreds of more shopping locations and you can use any debit card you want. Don’t believe me, check it out: https://lty.s.upromise.com/displayServlet?pl=ObNmy-evvj4$&ax=TAF

What benefit would I have staying with PerkStreet now? 

I didnt read ALL the posts below, but it appears that the 90% of people aren’t speaking up.  Most of the comments are negative (and maybe that’s just the inherent nature of feedback comments), but I have to add my negative comment as well.  I’m so glad I didnt try too hard to get my friends to switch to PerkStreet. I was so proud of 2% cashback anywhere, no matter what, as long as it was a Non-PIN transaction, that I told my friends and family to switch.  I’m glad they didn’t (or that I didn’t “brag” about it too much, as I would be eating my words at this point.  The inconvenience of depositing checks through mail and how long it takes to process transfers/etc is not worth 1%.  Nor is it worth having to remember all these details of who to shop through, in what venue, at what rate.  

I know people are inherently resistant to change; but this is enough to make me want to switch banks YET AGAIN having to setup all my drafts, bank info, etc.You have good customer relations but PS obviously did this for financial reasons.  I read somewhere below it was “too good to be true.”  Guess that’s the case.

I thought Perkstreet was about helping people “change the way they bank” by giving them 2% cash back incentive to motivate them in saving for and keeping at least $5,000 in the bank as emergency fund. So, I thought having us kept the minimum balance to earn 2% was exactly a way you *want* to serve us.

To me personally, yes, as you could guess, I am one of those 10% who is now earning 2% on everything. Perkstreet was attractive to me because I can pay my cable, internet, cell phone and insurance bills – my biggest spending – and earn 2% back. Honestly, my Amazon card give me 3%, my Target card give me 5%, my other card that gives me 5% on groceries and 1.25% on everything else. We always pay my credit card in full on time. I was just about to think that I could cut up all those credit cards and keep only Perkstreet for the ease in accounting, losing just a tiny portion of the cash back. Now, with this change, I am not so sure any more…

Why are you punishing the larger accounts that you have which hold >$5000. I am strongly considering taking my business to another company. Your reasoning makes no sense. Sounds like you want to keep an extra 1% for yourself.

Thanks for understanding MrAdoff. There’s certainly going to be a decision to make for some of our customers. We are certainly bummed to think we’re driving you back to credit card spending, but before you go back to AmEx, all we can ask is that you consider the options — and the peace-of-mind you get from spending on debit — carefully. Thanks much for the comment. 

-Kyle

That’s correct, Josh. PayPal purchases will no longer earn rewards. As with other cash-like purchases, there’s an opportunity for people to cycle money through PayPal and earn rewards unfairly without actually spending money. We have no choice but to put the clamp on those who would take advantage of an opportunity like this. 

-Kyle

Hate to break it to you but read the fine print. You can only earn 2% on up to $2500 in store and $2500 online purchases. Meaning $100 a year in rewards for carrying a 5K balance. 

SMH…

I’ll evaluate this over the next month and make a decision on whether to stay. Thinking about switching back to my Capital One Venture Card now as I get double points on all transactions and 1% cash back if I want to have a check or credit issued into my account. Heck, The yearly fee on my Capital One card is less than the $2 cost to redeem $20 in perks directly into my PS account now as I’m averaging almost $100 in perks on a monthly basis (I’m a $5000 min account holder BTW). This is going to drop dramatically and now I have to keep up with what stores to buy from to get 2% cash back (no thanks). This has become too complicated. Right now the only thing keeping me interested in PS is the digital envelope system but we don’t even know when that or the iPhone app is coming out.Maybe I should switch to my wife’s USAA account. At least the currently have an iPhone app for check deposit and also pretty good monthly budgeting tools.   I joined because of Dave Ramsey but I’m not sure what he would think about this. PS has not lost my business yet but I have some serious thinking to do now. Hummmm…….

Man, I feel duped! I just spent the last 2 months getting my husband to join my PS account as a joint, switching ALL of his accounts, automatic withdraws, everything to our PS account, and all of the effort was for the 2% back anywhere. I NEVER shop at the narrow list of select retailers. It’s a hassle to deposit checks into my PS account, but it was worth it with the 2% back. Now, there’s nothing setting PS apart from any other bank that offers the same cash back rewards, but also offers convenient deposit options. As much of a pain it’s gonna be to change banks and switch accounts around, I’m gonna do it. PS – if you can’t beat the competition with the 2% anywhere, you don’t have much to stand on anymore. See ya.

I am actually going back to my credit union…as you said…this is too much and too complicated and isn’t worth it.

I literal edited my last online bill pay to use my Perkstreet card right before I got this email.  Just went through all the hassle of switching my account over and funding it with the 5K over the last month.  Very disappointed.

Actually I thought about it…and you know what the crappiest part of it all. I am not sure anyone saw it coming. I am sure the people who recently joined are more disappointed than ever. I would be. One can claim that a month is enough time…but as you mentioned – this was in the works for months. I read the fine print and all in all I went from the “i don’t care” to “disappointed” category too. I still hate the banks, so I am not going there…but Municipal Credit Union here i come…

Thanks jbow and Dilbert, 
We’ve briefed Dave and his team on our changes. Our commitment to helping people earn cash back by spending smart and avoiding debt has never been stronger than it is today. While we’re certainly bummed to know we’ve let you down, we’re excited to be offering 90% of our customers more cash back with the changes. I’m sorry if this change is frustrating you today, but remember you have another month before the changes take hold. 

-Kyle

I can understand why these changes were made, as Perkstreet is still technically a bank and not a non-profit.  The Mastercard redemption option elimination and the limitation on the 2% earning rate (only at specific stores and limited to $5000/yr ($2500 online/2500 in-store)) are cost-cutting moves.  Perksteet, as a bank/business, reevaluated their situation and had to make changes.  The people most frustrated with this will be the 10% of customers who did keep the $5k in their accounts and were earning unlimited 2%, and that is certainly understandable.

However, there are positives with this change.  The 90% of us (including me) who couldn’t quite keep a $5k balance will have more opportunities to earn the 2%.  Those of us that do a bulk of our household spending at the big retailers will benefit from this change.  The ability to redeem at more retailers (even electronically) gives you quicker access to perks.  The statement credit option (despite the $2 cost) is a welcome addition as now you don’t have to wait a week or more on a perks card to arrive in the mail.  A virtual envelope system is in the works that will change the way you do budgeting…a system that takes the traditional cash envelope system that Dave Ramsey teaches and adjusts it for the times…aka using debit cards instead of cash.

Not everyone will be pleased by this change, but it is impossible to please everyone. Overall, however, Perkstreet is still likely the better option vs. the local bank or credit union.  Don’t forget they give you access to over 40,000 ATMs nationwide and very convenient (and free) deposit options.

Kyle-You say, “most rewards to the most people.”  Technically, isn’t this just the approximate same total number of rewards to more people?

This is extremely dissappointing. The only thing that was attractive about PerkStreet was the 2% cashback. And even if you regularly shop (as I do) at the extremely limited list of retailers that reward 2%, your 2% rewards are capped at $50 online and $50 in store. Plus if you are a regular shopper at these retailers, several of these retailers have their own cards which offer better deals (5% for Target, 3% for Amazon, etc.) The nice thing about PerkStreet was that it was 2% everywhere and it didn’t require me to think.

PerkStreet is now the same as many of the other credit cards out there that offer you 1% + 5% on random monthly crap, except it comes with the added risk of being a debit card and having low daily spending limits. And I don’t understand people who are saying that they will keep PerkStreet because they “love it” beyond the 2%. The website is mediocre and certainly doesn’t compare in functionalty to the big banks or credit cards and as another poster said, it is quite difficult to get money into the account on a scheduled basis if you spend thousands of dollars a month on the card (yes, I can use MY OTHER BANK’s website to transfer funds, but why should I need to do that?).

And honestly, this isn’t even a particularly good move for the 90% of people who will make more cash back now. There are better combinations of options (1% credit card which you pay of monthly + Merchange Specific cards which you pay off monthly + High Yield Savings account) that will earn more money than PerkStreet will.

I will be one of those cancelling my account.

I’m disappointed as well Perkstreet.  I understand that as a business the current system may unsustainable, but instead of simply disadvantaging the $5K people by cutting back on their perks, build in other options for the 5K+ that are sustainable.

1. Add gas and food purchases for those 5K+ at 2% (I think as most of us here joined to eliminate debt/increase wealth and big box stores often don’t mix well into those budget plans.  Especially as frequent purchases.)

2. Tier the rewards for deposit amount (If necessary find the number at which the deposit amount is sustainable for 2% rewards instead of eliminating it. 7k? 10k? If there is a higher amount that has to be reached the percentage of us that reach it will be lower, but the option is still there and it gives us a goal worth achieving.)

3. Options
3.a. Instead of eliminating the MC gift card option, which I assume is because they are costing you more secondary to the amount ordered or MC’s greed in negotiating for fees, offer the MC gift card at $1 perk per $20 and at the same time leave the $2 for $20 direct deposit.  The MC option for those that can wait, and the direct for those that need it now.
3. b. Add redemption offers that are non-big box i.e. gas and grocery (since again most people need necessities rather than pleasantries)

N.

Yes, Michelle. Two cards from the same account (such as a joint account) processed separately will not be eligible for this bonus rewards category. It would be too easy for people to take advantage of this feature — which is designed to extend the PerkStreet community offline and help people talk about why PerkStreet is great. I hope this clarifies this component, which we’ll undoubtedly be sharing more about over the next month before the changes take hold. 

-Kyle

I’m part of the 10% and really don’t like this…  I don’t shop at those retailers enough and may be looking elsewhere to see if I can find better rewards.  It would be nice if you’d grandfather in old customers who met the old $5000 qualification (at least for 12 months or so?)

However, I really do like the fact that you did good customer analysis and looked at everyone as a whole.  That does say a lot about PerkStreet and I do appreciate that.

Joethibodeau, 
While I totally understand your frustration with the change, and I know that most of our competitors have only made changes recently that have been seen as “bad for the customer,” but please consider that these changes will mean PerkStreet offering more cash back to 90% of our customers. Sorry if we’ve let you down personally. I’m sure this is upsetting. 

-Kyle

Kyle Psaty

If below or above 5k are you sill capped at the dollar amounts of $2500 instore / online amount as listed in the PS of the letter?
“Like PowerPerks, there’s a limit of $5,000 in purchases per year that can earn 2% — $2,500 for online purchases and $2,500 for offline purchases.”

I agree – what a bummer.  I keep a $5000 balance and like the Mastercard gift cards.  Time to look for something better. 

Extremely disappointing especially after all the smack you guys talk about other banks lowering their “PERKS” and increasing fees.  The 2%ers are the only ones who lose in this deal.  I dont know anyone who does regular weekly shopping online.  Of course 10% of your clientel will be withdrawing millions of dollars very soon, myself included. 

2% at Amazon.com.  Wow!  This is awesome.  I never used to get 2% at Amazon…oh wait, as long as I had $5000 I DID get 2% before!!!  Maybe it really is worth looking back at Amazon’s card since it gives 3% at Amazon.com purchases.  Perkstreet was a advantage becuase I could pay my internet, cable, phone, etc and get 2% at ALL THOSE PLACES.  I do not see those on the list so Perstreet is not near as good as before…1% for an inconvenient way to deposit/transfer money.  Why would I do that?  I see a cancelled account in my future…

This is bad. Losing the 2% cahsback with $5000 balance takes away the advantage of hafving this account. Many financial institutions offer unlimited 1% cashback. I thought PerkStreet was ahead of the curve in this true perk. But a bank is a bank. O Malley, check my account and history, I have had well over $5000 for quite some time. On average $300 in non 1099 interest a year. I will be moving most of my money out of here now and find another path to earning more for high balance. Bad move O’ Malley, bad move.

Yeah, without a doubt, PerkStreet has let me down.  It comes back to the fact that I DON’T shop at these places online or offline.  You’re essentially cutting my rewards down to 1%.  I made nearly $1000 in rewards last year.  The change cuts that down to $500.  “Spend With A Friend”?  How lame is that?  I’m an adult, not a college kid.  I don’t “spend with a friend” to make this even something worth considering.  Picking the categories?  Unless I can specifically pick MY categories, the ones offered have so far not been a benefit for me.

So despite all of these “new” rewards, PerkStreet has done nothing but screw the $5k customer.

What bridges the gap over any disappointment I may have in the change is the obvious desire for excellence in customer service. This is has been impressive to me from the beginning and covers a lot to me.  Just consider this thread and how often PS has addressed the grievances. It’s tough to find a company that pays such attention to their customers.

I am very disappointed with the change in perks. I contacted Dave Ramsey and also shared my disappointment with him since he had been endorsing you as an institution which offered 2% CASH back on all purchases. Now that I can no longer receive 2% back on all purchases or redeem my perks for a MC debit card, I will look for another, more convenient, banking option.

Kyle… I don’t understand why you’re trying to tell us it’s a good thing that we get 2% back at Walmart, Target, Best Buy, and Apple if we have 5k in our account when we had previously been given 2% at any store. This is not providing “more ways to earn perks” but only taking away the customer’s options.

Dan O’Malley states that this will allow “more of our customers to earn cash back.” Wasn’t the point of PerkStreet to reward those who save and are smart with their money? Not simply to be fair and spread the perks equally? I do not appreciate the attitude with which this was done. I am sorry to say that I will no longer be recommending PerkStreet to my friends and family.

Everyone who’s disappointed, please email Dan directly as I am doing right now!!! - domalley@perkstreet.com

What disappointing news! I loved being a PerkStreet customer. I’ve told several friends to join up because you can make 2% on all your purchases, which is much better than any other bank. Now, there’s as much complexity and caveats to the rewards as all the other big banks. Also, saying that you are trying to benefit people that have less than $5000 in their account, and then charging them $32 for NSF fees: it’s a little inconsistent to me. I’m not sure if the justification you’ve given for this change is genuine, but either way, I’m going to have to start the hunt for a better return! BECU is my other bank, and I highly recommend it, Washingtonians.

Why not just cap annual earnings at $300 or something that keeps the program? Classic bait and switch. PS knew they could not sustain this %2 program for $5000 or above. The limited branch model should be saving this division of Bancorp plenty of money. A Bank is a Bank.

This is awful. Instead of rewarding those who are able to save money by maintaining a $5000 balance, we’re only allowed to make 2% by being good consumers buying non-essentials. It would be nice to at least see some grocery store and gas stations on the list of special merchants. It’s a much more complicated scheme, and I’m sad to see PerkStreet pulling typical big-bank tricks on us by changing what we signed up for. 

Do the people technically have to even know each other?  If I and another PerkStreet customer happen to eat at the same place for lunch, are we “accidentally” getting the reward?

Sorry to disappoint you, Howdyhansen, 
We believe PerkStreet has by far the most exciting debit card program in the world. We offer the only checking account with unlimited rewards and up to 5% bonus categories. Some customers earn over $1,000 per year without ever earning the currently existing 2% for $5K balance rewards.  Plus you won’t have the same hefty fees you’ll experience at most larger banks by sticking with us. 

That said, we understand we’ve put you in the position to potentially make a decision, and we’re sorry for asking you to reconsider a plan you were obviously undertaking successfully with your husband. 

-Kyle

Although I am a account holder of below the $5000, I have been saving up so that I could meet the requirement, I feel cheated on behalf of my sister who I helped open an account which is a bit of work. I think the change should not affect current users only new users if at all. One thing that annoys me is that if you look at the special offers page under “My Perks” it says that I would ear the 2% unlimited on my account if it was above the $5000. daily limit from 8/7/11 thru 7/23/2111, 2111!!! which is the life of my account. If you did not plan on keeping this then why set such a high day? It annoys me and I will probably start looking for an alternative. I have attached a screen shot.

I understand your (Perkstreet’s) decision has been made but this is definitely a disadvantage to the 5K group. I know as a business  you look at majority instead of the 10% of your business as the 5K but this really stinks. I will probably continue to use you for Walmart and Amazon and Target purchases but my other business such as gas will be going on my credit card as it has over a 1% perk. You used to be the best in offering 2% for me but you aren’t any longer. What did you make off of each of my non-pin purchases? I guess you just lost some of them! The 5K people are responsible customers and it is nice to be respected. I hope you listen to the customers and at least expand the 2% options for 5K people to include perks for money spent on gas, etc. I am very disappointed in your company! 

I would like to voice my
unhappiness with the new changes that are being made. As one of the
2%-ers, I’m personally going to be making a lot less with the new
scheme, but that’s not the worst part of it. Instead of encouraging
people to responsibly save and be rewarded for it, PerkStreet is now
attempting to reward being a “good consumer.” There aren’t big rewards
for gas or groceries, just for new computers, clothing, and other
non-essentials. Without the rewards Mastercard, we’re forced into
spending big money at restaurants or coffee shops, if we don’t want an
extra penalty for taking the cash. I can see how these changes will make
PerkStreet more money… and not that there’s something inherently
wrong with that idea, but you’re NOT helping your customers.

I’ve loved PerkStreet ever since signing up, but I’ll likely be closing
my account in April. I’m tired of big banks tricks, and PerkStreet
seemed like a breath of fresh air… not anymore.

Thanks for taking the time to read this and the other comments from your customers.

 No, you won’t earn 2% for long.  You’ll only earn 2% for the first $2500 in purchases at Walmart, Target, Best Buy, and Apple.  One new TV or a few weeks of grocery shopping and that’s gone.  You’ll be sent back down to 1%.  You’re not “unlocking” anything.  You already had 2% cash back.  Unlocking insinuates that you’re opening something new.  Rather, PerkStreet is locking up the profits they used to be sharing with you.  And that’s too bad.

 What department of PS do you work in, Robert?

This is just “spin”, since those under $5k were always getting 1%, it’s basically an attempt to “spin” this as a good thing. I am a $5k+ user, basically I am losing out on my benefit, while those under $5k are gaining the ability to earn an additional 1% at six online retailers.

This means that you won’t be getting 2% at Walmart when you grocery shop (a very common use), you will only be getting 2% cash back in rare use cases (when ordering online). Which is dissappointing. 

That being said, does anyone know of a bank/cu offering 1% on debit card use? I don’t. Anyone know of a better checking account? Ally, maybe, but their cash back program is weird. 1% is still a good deal, and not having to use a credit card for rewards, is an even better deal. I’ll probably stay on here at PS, might move some of my $5k elsewhere, where I can earn interest on it. 

The loss of the MasterCard giftcard kind of sucks. Especially considering the 10% fee to deposit it in our accounts. Is there anyway of using a re-loadable card to offset costs? I know Visa offers a Reloadable card. Or any chance of changing the 10% fee to a $2 fee for any deposit (regardless of amount). So say you cash out $100, you will be charged $102 in rewards money. and say cash out $50, you will be charged $52 in rewards money? As opposed to you cash out $100 you will be charged $110 in rewards money. That seems a little steep to deposit it into your own bank. I feel PS tries to be transparent, can you speak on the cost for PS to deposit money into their own accounts that would explain the $2/$20 fee? Or is that simply to encourage retail gift card use that PS gets at a discount?

I am very upset to hear about this change to perks for those of us who had the $5,000+ balance. It’s very sad to see a card that I had so highly spoke of to my friends and family make a change to the rewards system in a way that no longer stands out from the rest. I no longer see a reason to recommend Perkstreet to my friends and family because of these changes. And I no longer see a reason to keep a higher balance or even use the card really. I will be lowering my account balance significantly as there is no longer a benefit for me to have the extra money in the account. And instead of using my perkstreet card for EVERYTHING like I used to do, I’ll just use other payment methods that offer better rewards.

This is a very unwelcome change and is most frustrating to see a company I respected go this route.

Good point, I thought of that, but forgot to mention it. The biggest thing that bothers me is the lack of grocery and gas options in the 2% rewards. Those are some of the most common purchases, and can be ones that add up. How much do people spend on iTunes? Compared to grocery and gas? I hope not as much. I guess though, by those “adding” up, that makes them prime targets to “save” the company money.

Still anyone have an alternative that beats 1%? I’d love to at least here the options, and I try to avoid the big banks as much as possible, because I prefer to give someone else my business. Ally is a possibility, but even they are borderline big bank if not big bank.

Thanks for having the conversation out here in the open, JPD. I’m glad to meet you here in the comments, and we totally understand the decision-making position we’ve put you in. I hope we get to keep you as a customer, but if not, I’m glad to know you’ll have found something else that works better for you. 

-Kyle

Ugh, James. This is a tough scenario. I’m sorry if we’ve let you down. As far as feeling duped goes, know this: We’re going to continue to honor all outstanding introductory offers – giving all new customers, who signed on before our announcement of the new rewards, unlimited 2% on purchases for their first 90 days.  This is also the reason we gave 30 day notice – to give everyone in the PerkStreet community  time to understand the changes and make the decision that’s right for them. 

I know this is the worst possible time in our relationship to be letting you down, but if you decide to stick with us, I’m sure you’ll find our product still offers you an incredible amount of cash back for spending responsibly on debit. Thanks for your feedback. 

-Kyle

Thanks for taking the time to write, Josh. I’m sure Mr. O’Malley will have a personal response for you via email soon. 

-Kyle

 You hit the nail on the head with your post.

The 2% everywhere is what made Perkstreet so great. Taking that away (in a bait and switch kinda way after they’ve grown their customer base) just makes Perkstreet fade into the pool of the other cards… except with the OTHER CARDS you can earn MORE REWARDS.

There are better options out there and I too plan on cancelling my account.

wow, than this is really a deep blow. 1 Losing out Mastercard
2. unlimited 2%
3. i was really proud of finding you guys online and telling family about the programs. Now i look like an idiot for bragging about it.
 I was really close to going with Ally and only been with you guys a little over a month. i was going to open my business account with you guys this week since it was going well but now sadly i will be moving accounts with someone that will offer TRUELY unlimited 2%.

I understand your point of view, Bill. And I’m sorry we’ve upset you today. Thanks much for having this conversation with me here where everyone can benefit from it. 

-Kyle

I hate to add into this conversation, but I also am very frustrated. I moved to PS purely for the 2% cash back incentive. I definitely told a bunch of people about PS, but don’t feel like it is worth it now for what you get. Did PS take into account their marketing when making this decision. How many new customers come because of this? How many people will no longer promote PS to others? This is more than just bottom line problems, it’s a huge marketing blunder. 

With the 2% cash back I was able to overlook the cash transfer caps and slow, inconvenient deposits. I just don’t know if it’s worth it to me anymore. The incentive is just not there right now. 

Sorry PS.

I would have appreciated honesty.  Let’s be honest, unlimited 2% cash back is killing your bank.  If you would have approached your customers this way, I don’t think you’d have so many unhappy ones.  Trying to convince us that you’re doing this so that 90% of your customers can earn more just isn’t true – and we can see through that.  For 2% cash back on ALL non-pin purchases, I was willing to deal with the inconvenience of a virtual bank.  For 1%, I’m better off with a local bank.  There is no incentive to work with your bank anymore.   You no longer out-compete your competitors. 

That was very well said and I hope Kyle and Dan O Malley and the rest of the team will take this to heart.  There is no incentive anymore.  If you really wanted to help out the 90% you should have left it like it was and given the 2% for the online purchases or lowered the amount they needed to keep in their account.

Hey CVP, 
I can say personally that as a member of the marketing team here at PerkStreet, I will feel better selling a product that anyone can take advantage of, and not just <10% of our customers. Moreover, I'm committed to the idea of rewarding as many people as possible rather than creating an institution that rewards very few much more than everyone else. (In my view, there's an excess of that kind of thing in our industry.) We remain committed to offering you a very compelling rewards program. I hope 6 months from now, you check your perks balance and still feel "spoiled." That feeling is what I come to work to create. Sorry if we've let you down today. 

-Kyle

I also am disappointed, not because I maintain the $5000 balance, but that this has been a goal and an incentive. But, rather than complaining, I have a few questions. The mastercard cash reward had a minimum of $50 in reward account. What are the minimums to redeem the new cards? Especially for the walmart card and the restaurant cars? Thank you! It will help my planning.

Hey Erin, 
Of course we’re reading all your comments today. To us, being a good partner to you means being present to answer your questions no matter what. 

As for your point about changing what we encourage people to do: We developed PerkStreet to reward people for responsible spending. That means choosing debit over credit. We hope you use debit to make all of your purchases, from every day spending to splurges, so you always spend within your means.

I hope this helps you understand our thinking here, 

-Kyle

honestly the more i read the less i think 90% dont keep 5k in thier account

I’ve got no incentive to keep my > $5000 balance with Perkstreet which means I’ll keep much less in the account and with the reduced perks just like others here not sure if the hassle of juggling funds/transfers will be worth the small amount of potential perks.   Time to research what other options exist….

Hey Concerned, 
Of course our goal was not to lose customers. We’re upset about having to let you down with this news. But that doesn’t mean we don’t feel we need to make these changes in order to spread our rewards out to the most people possible. 

Of course, the $2,500 spending limits for online and in-store 2% purchases (summing up to $5,000) aren’t a secret. That’s why Dan pointed them out at around paragraph 4 in the post. The problem with communicating changes like these is potentially inundating people with information overload, which is why this blog post is broken into sections. If you have specific questions about those limits, please fire away and I’ll do my best to answer you. 

-Kyle

Count me among the current-but-soon-leaving >$5K customers. Perkstreet advertised the unlimited 2% back everywhere and now that people have joined you’re going to take it away? And no more mastercard gift certificates? When I looked at switching banks a couple months ago these were the two reasons Perkstreet edged out the competition.  Not any more, I guess. After advertising as the alternative to big banks that are always making changes that hurt the customer, this is really disappointing.

JC, 
I can tell you’re upset. I’m sorry if we’ve let you down. I should also mention we are trying really hard to prevent bait-and-switch scenarios with any new customers: We’re going to continue to honor all outstanding introductory offers – giving all new customers, who signed on before our announcement of the new rewards, unlimited 2% on purchases for their first 90 days. This is also the reason we gave 30 day notice – to give everyone in the PerkStreet community  time to understand the changes. 

-Kyle

Thanks TM,
I’m sorry we’ve let you down, and we wish we weren’t going to lose you as a customer. I would point out that to many of our customers, credit cards and debit cards are very different. We believe PerkStreet has by far the most exciting debit card program in the world. We will still be offering the only checking account with unlimited rewards and up to 5% bonus categories. Some customers earn over $1,000 per year without ever getting 2% for a $5K balance.

-Kyle  

Sorry if this felt like a bait-and-switch, Michelle. We’re trying really hard to avoid that with our new customers. We’re going to continue to honor all outstanding introductory offers – giving all new customers, who signed on before our announcement of the new rewards, unlimited 2% on purchases for their first 90 days. This is also the reason we gave 30 day notice – to give everyone in the PerkStreet community  time to understand the changes. 

As for your question about Dave, we have briefed him and his staff about the changes, absolutely, and we remain committed to delivering the best debit rewards program we can, rewarding people for spending their own money, debt-free. 

-Kyle

What a sad story this is. More than 90% don’t keep a balance of $5k? Which makes the rewards of Perkstreet equivalent to just about any other rewards Credit Card out there.
later in the story, insufficient fund fees, and, coming soon an “envelope system”. (Which I’m a firm believer in, and use myself)This “Used” to be an account for people who knew how to manage money, and were rewarded for it.I said it my opening survey, “It seems too good to be true, but I’ll stick around for the good times, until the truth comes out!”Ladies and Gentlemen, today is that sad, sad day.Thank you Perkstreet/Bancorp for the good times.Best of luck to you on your new venture.

Hey Charles, 
Good question. We’d rather offer unlimited rewards than capping everything. I would also note that PerkStreet is an independent company and only partners with The Bancorp Bank, which holds our assets and provides the full FDIC insurance our customers need to be safe while we grow. Thanks much for raising the question, Charles. 

-Kyle

I’ve always used a rewards credit card in the past, paying off my balance each month so I don’t incur any interest, but still get miles in reward.  Due to a high airline miles balance from a new job that has me travelling a lot, I started shopping for new credit cards and compared to Perk Street.  I just opened my PS account 3 weeks ago based on my research.  I spend about $3,500 per month on my card, and based on my spending the standard credit cards (1% on everything, 2% groceries, 5% gas), I would earn something like 1.4% cash back on average, so the 2% that PS offered was very attractive.  

Under this new scheme, since I never planned to use the store gift cards, I’ll only be earning 0.91% on the PS account (once you consider the $2 fee on the $20 cash back, you’re only earning 0.91% perks under the standard new scheme).  Since I spend only a small amount at Target, Walmart, etc. and the 5% perks don’t seem to ever cover essentials (gas stations, grocery stores, utility companies, etc), I think under the new scheme I’ll come out with just about 1% net cash back.  The 1.4% that I can get through a credit card is now the better option for me by far.  

I’m glad I was still new enough that I was testing this out and hadn’t changed over my direct deposit, bill payments, etc.  Once my 90 day 2% perks run out, I’ll be switching back to a standard card that earns a better return.  

Biggest disappointment is the way it was presented.  This is obviously not a move to give more perks to more people, but rather a cost savings scheme.  I would argue that only a limited number of people will actually get a significant benefit from spending at Target, Walmart, etc.  Even if they would, the benefit has been capped.  I wish this would have been presented as a cost savings move, with a caveat that even though they’ve needed to do it, they are making some changes to make it slightly better than simply cutting the reward to 1% across the board.  

Lastly, I will second an earlier comment about this being a bait and switch.  Since the 2% has only been in place for ~8 months, PS obviously never had an intention to keep rewards at this level, but rather planned from the beginning to use it as a marketing tool.  

The only advantage I see is a permanent 2% reward at Amazon, since they don’t offer any additional cash back through websites like FatWallet.

Besides that, I’m losing 2% cash back on big purchases and the ability to get a cash gift card.  And the 9% penalty on actual cash rewards deposited into my account?  Ick.

I’m tempted to close my account entirely due to the non-activity fee and all the other atrocious changes.

Hey Aaron, 
In 2010, we reduced our overdraft fees below the levels of the credit unions and community banks we benchmark ourselves against. We are moving these fees back to where they used to be and will continue to work to ensure our fees are fewer and lower than the big banks.

-Kyle

Whoa. I didn’t even see the annual limits. I guess I’m going back to my Credit Union. Banking online can be a bit of a hassle since there is no quick way to get to your money, so a paltry reward just isn’t worth it. I wish they had done this before I talked them up to my friends and family.

Thanks for your thoughts, Spurk, 
I only meant to point out that our customers who keep $5K in their accounts were not forgotten in these changes. There’s still a special reward category for you (2% cash back in-store at Walmart, Target, Best Buy and Apple).

The point of PerkStreet, as I see it, is to reward people for choosing debit and avoiding debt — for spending their own money and living within their means. I’m sorry we’ve let you down today and lost your recommendation. I hope you see that the rewards you’ll continue to earn after the changes take hold are still motivating enough to keep you feeling good about our company. Thanks again for weighing in here. 

-Kyle

 Mr. O’Malley said he had no such plans. “A lot of banks, that’s explicitly what they try to do, and it leaves a bad taste in my mouth,” he said.”

leaves a bad taste in our mouth too ….

Kyle ,
What can you tell me about the 5% PowerPerks at places you choose every month? Is this to limited/capped as well and WHO is picking the monthly places?

Thanks mbjcpa, 
PerkStreet has made this decision to offer 90% of our customers more rewards. We wish we could have done that without changing the benefit to the 10% earning unlimited 2% currently. But we simply cannot offer that many more perks without disrupting our profitability as a business. We need to make money in order to keep serving our customers. These things must stay in balance. While I certainly appreciate your having a sizable emergency fund, I’m sorry that you no longer feel like the incentive for keeping it with us is worthwhile. I hope this all makes sense. Thanks for continuing this conversation with me here in the comments. 

-Kyle

I did the math, I’m switching back to my credit union too.

 You couldn’t reach that amount anymore anyway because of the new annual limitations.

 What happened to being grandfathered in? Verizon’s unlimited bandwidth customers are still unlimited.

Clearly this change isn’t about the customers, like me, who always maintain a balance above $5,000 and use Perkstreet on all purchases.  If this change were about helping everyone, Perkstreet would merely provide us with the ability to opt-in or out of different programs, including getting 2% back on all purchases while maintaining the $5k balance.  They won’t allow this, though, because this is a business decision, and they decided this is the best way to make the most money.  This stinks, and I’ll have to re-evalute when I used the card.  I am disappointed but not surprised.

Some said it would happen when they started it…
http://www.nytimes.com/2010/06/23/your-money/23money.html?_r=1&pagewanted=all

Quote ” A true cynic might suspect a pump-and-dump scheme: lure people in with a big rebate and then cut it sharply once they have checking accounts set up. Some customers would leave in disgust, but many more would probably shrug their shoulders and stay. Mr. O’Malley said he had no such plans. “A lot of banks, that’s explicitly what they try to do, and it leaves a bad taste in my mouth,” he said.”

Published : June 22, 2010 

 Yes, Kyle is awesome. Perkstreet, not so much anymore.

Thanks Odyssey, for turning up on the blog today and saying why you’re happy about the changes. Your transfer limits went up because our system has learned that you need to transfer more than other folks, and because it is recognizing you as a good customer. Thanks for waiting it out. We appreciate your support here today. 

-Kyle

I find it extremely misleading that you’re acting as if customers can “unlock” a benefit at specific retailers when anyone with a $5,000 balance has always been able to gt 2% cash back no matter where they shop. As someone who doesn’t patronize any of those retailers except for shopping at Amazon over the holidays, I feel like I’m getting shafted with this change.

Thanks Superstorm, for jumping in with a positive take on all this. -Kyle

 Check the new annual limits. While previously achieving a $5K balance would have given you a decent reward, the new layout hoses everyone.

 I disagree, the 100% online business model saved billions they would have spent on branches and you don’t think they’re making more than 2% with the millions we store in their bank? They were making plenty of money they just got greedy.

Good point, jbow. PerkStreet cards can be enrolled in the UPromise program as well to earn extra perks towards student loan payments. 

-Kyle

 Found money that offset the hassles of having an online-only bank.

I’m not feeling good about giving Perk Street 10% of the Perks I’ve earned.  I will earn 1% – 5% depending on the perks available.  I will then have to turn around and give Perk Street 10% of what I earn if I chose to have Perk Street transfer my perks back into my Perk Street account.  That just doesn’t seem fair.

Does Dave Ramsey know about this?

 If you buy into the idea that only 10% kept $5K.

Hey David, 
thanks much for your comments. If you can find a credit union offering that’s significantly better for you, we totally understand your deciding to switch. But do your homework carefully. 

We believe PerkStreet has by far the most exciting debit card program around. We offer the only checking account with unlimited rewards and up to 5% bonus categories. Some customers earn over $1,000 per year without ever having the $5k balance required to earn 2% currently. I hope you find something that works well for you. If PerkStreet isn’t it, we’ll be sorry to lose you.

-Kyle

Jake, 
You certainly were not alone in requesting these changes. A lot of customers have asked for statement credits over the last year, which is part of the reason why we felt we should create an option for this. 

-Kyle

Thanks Shira, We’re considering this language right now. The problem is that from today forward, we will be explaining the change to new customers as well as those who already exist. If you’re new to PerkStreet, understanding the in-store rewards as “unlock-able” would make more sense than “continuing to earn” them. Please remember that this blog post and these comments will be available for years to come! -Kyle

Couldn’t have said it better myself….the way Perkstreet is trying to make it sound as if they are doing a good thing for us totally ruins their reputation in my opinion.

 Kyle,
can you explain where the $2/$20 deposit fee is coming from? How much does it cost PS to deposit money into its own accounts? Any talk of lessening this to just $2/deposit? 10% fee seems a little steep to deposit from PS into PS.

Thanks

Thanks Jimmy, 
I appreciate your weighing in here, because you’re the first person without the $5K balance I’ve seen complain about the changes today. I am surprised that our improving the product for customers like you has left you feeling slighted. What about all the rewards you’re earning without any balance requirement? What of the new rewards categories you’ll have access to now? Was the hope for unlimited 2% cash back better than the rewards you have in-hand?

As we talked to customers before this change, some expressed remorse about the loss of a “carrot” motivating them to save money, but none, to my knowledge, said they’d rather have the carrot than the extra cash back to help them hit their goals. 

-Kyle

This simply isn’t right and feels like false advertising! We have scraped and save and maintained the $5K min and it is unbelievable that folks with a >$5K balance are now being penalized!!! This is something Bank of America would pull. We joined Perk Street thinking its philosophy was different than other main-stream financial institutions- no so. Why not keep the perks the same for customers with >$5k AND apply the new changes to assist those with less in their accounts? I may as well go back to credit card perks! I just convinced a friend to set-up an account and now regret it. Perk Street…this decision may have lost you customers!!!!!!!!!!!!!!!!!!!

A program that was geared towards individual customer’s spending habits is transitioning into one that lumps everyone together…and we’re suppose to be happy! I’ve raved about PerkStreet and now it’s just another big bank

we upheld our end of the agreement by maintaining a >$5K balance. people knew what they were signing up for and knew the balance they could maintain. it sounds rather fishy that people would complain when they knew what they would receive. sounds like PerkStreet pulled a “bait and switch”

SHAME ON YOU!!!

I just signed up and just faxed my signature card in today…I only joined due to referral from Dave Ramsey and the 2% cash back…I had full intentions of depositing 5000 after my 3 months expired to maintain the 2% cash back level..I dont think it will be worth it, given the earn back on my existing card.

Thanks Jason, 
I understand these changes have you considering your options again, and facing that right after joining us must be frustrating. I also appreciate your giving me a personal shout-out

I would encourage you to consider the difference between debit and credit  as far as spending options go. You might be able to earn more from Chase on a credit card, but Chase is also banking on yours being one of the 60% of households that don’t pay a credit card bill in full at least once per year. With PerkStreet, you’ll still be getting a checking account that’s free to get, free to use, and offers you unlimited cash back with lots of ways to earn more than that. Food for thought as you make your decision. 

I hope you end up deciding to stay with us, because we value your business — but of course we all want you to make the decision that’s best for you personally. Good luck weighing your options. 

-Kyle

I joined in January of this year, with the intent of moving enough money (from an online savings account that was to be acquired by a bank I dread doing business with) into a PerkStreet account so as to meet the $5k requirement to get 2% back rewards as a MasterCard gift card.  I hadn’t reached that level yet, and now that the MasterCard GCs have been done away with I have only received enough to redeem rewards for one of the very few merchant gift cards (which I rarely shop at) that will be giving 2% back to those w/balances over $5k.  I’m so glad I didn’t use this account much and kept a low balance, because rewards or not, I am fed up and ready to close it.  The only thing that I’m happy about is that I still have my Citi Platinum Dividend MasterCard & Chase Freedom Visa credit cards, which give me 5% cash back in rotating categories including grocery stores, gas stations, Amazon.com & Kohls.  No benefit to keeping this account @ all.

Alright PerkStreet…what happens when 10% of your customer base (those with >$5K balance) pull funds because there is no longer enough incentive to maintain a higher balance? I may be moving mine to Bank of Internet. They have a free rewards checking that offers 1.25% (and no account balance limit). You can send them scanned checks which more convenient than having to overnight a check.  Here’s their offer …

“Rewards Checking comes with unlimited ATM reimbursements, free Bill Pay, free cash-back Purchase Rewards and free FinanceWorks™ money management software. Plus you can earn up to 1.25% APY* on all balances and it only takes $100 to open!”

You’re not being unfair here, Mike. I appreciate your sincerity. We certainly understand the difference between double rewards with a cap and double rewards without it. I understand if this new 2% in-store bonus at the selected retailers feels like a letdown. It was the best we could come up with as a bonus reward for customers with >$5K in balances while still offering more for everyone in the 90%. 

Thanks for sticking around to read all the comments and soak this announcement in. 

-Kyle

Thanks Regina, 
We’ve notified Dave and his team. Moreover, we believe PerkStreet has by far the most exciting debit card program around, even after the changes take hold. If you’re looking for an account that’s free to get, free to use and pays unlimited cash back rewards, PerkStreet will surely still stand out It will still be a great way to earn rewards for spending your own money and avoiding debt. 

-Kyle

We hear you Unhappy, 
We still think our philosophy is different, but we understand your being upset about these changes. While we would have liked to offer additional rewards without having to reallocate them from someplace else, we simply need to keep our rewards and revenues in balance. Simply offering more on top of the old offering would have strained our ability to make money, which we need to do to keep offering debit rewards for the long haul. 

As part of our new rewards program, the friend you just convinced to set up an account will now earn unlimited 2% when you both grab dinner, coffee or drinks together as part of our new Spend With A Friend component. I know it’s not unlimited 2% everywhere, but it’s a bonus for sharing the news of unlimited debit card rewards with friends and family.

-Kyle

Like most of the posts here, I am very disappointed as well. I understand this is a business decision for Perkstreet; however, I will find somewhere else to keep my 5 k+ balance and more than likely will close my account.

Very disappointed about this. I spend over a month moving all my direct deposits, bill pays, and linking other accounts. Just finished my first month of use and now you pull the plug on 2%. I was about to transfer enough to get me above 5k, but there is no point now. I could keep half of the 5k in ING and earn $200, or move it to you and get max $50 IF I spend at certain retailers. Add to the fact you have no easy way to deposit checks, poor web site, no mobil app, no drive through atms, and restrictions on transfers that I do not have at other banks. I can get any number of cards that pay more than 1%, but they are credit cards which I really did not want to use. The last time I felt this way about a companies change, it was netflix. Eleven years with them, but I dropped them. I moved from a big national bank that go no rewards, so 1% is better than what I was getting but I went through a lot of grief to move to you. Not sure it is worth it, so our relationship may end very soon.

Dan’s been responding to emails from customers all day, and I know he’s reading all the comments here as well. If you feel you’d like to speak with our CEO about the changes, please do as the above commenter suggests and email him at the address shared. -Kyle

And hopefully rethink these changes for your customers and just keep it the way it was!

perhaps you are forgetting that many of us selected your bank based on Dave Ramsey’s principles and that people are trying to stay out of debt. my friend isn’t wasting her hard earned dollars at restaurants. the odds that anyone will cash-in on this specific perk is slim-to-none! it’d help if you considered who your customer base is. we are trying to survive tough economic times and perks on gas, food and other necessities are far more useful!!!

Thanks for weighing in, Duke. 
We did consider our ability to market moving forward when contemplating these options. The truth is that our marketing team — myself included — felt bad about marketing a 2% debit card that only a small fraction of our customers could afford to take advantage of after we discovered this was the case. We just didn’t feel setting false expectations was any way to build a business. 

If transfers and check deposits are frustrating you, I’d suggest setting up direct deposit with PerkStreet, which posts the same day you’re paid.

Thanks for your comment, 
-Kyle 

I hear you Unhappy, and we certainly do everything we can to understand our customers. I’m a customer. My mom’s a customer. We are both getting out of debt. And for us, being able to earn 2% on the occasionally treat-ourselves dinner out will help us stick to our debt-free goals for the long haul. 

Even with these changes, we still believe PerkStreet offers the most exciting debit card program around. Our customers will continue to earn hundreds of dollars every year for spending responsibly and not going in debt. 

I like to think of PerkStreet as more than just a rewards program. I look at our fast customer service, our online community, and our savings tools (StreetSense, Envelopes, more to come) as a total package. The difference between us and all our competitors is our transparency and our attitude of genuinely wanting our customers to succeed, conquer debt, and live healthy financial lives. I hope you stick with us.

-Kyle

Wish I had kept mine open.

Bek and Laura, 
I just want to be crystal clear here: After these changes take place, everyone will still earn unlimited 1% cash back on all the non-PIN purchases that don’t qualify for further bonus cash back. In that circumstance, you’ll earn 2% or 5% cash back. Only the bonus 2% and 5% cash back categories have caps associated with them. 

-Kyle

Hey 0000, 
I’m happy to be able to please you on the first request: Next month, when the changes take hold, you will be able to get Walmart gift cards as a redemption option. (See the announcement in the blog post above.) As for Visa, AmEx and Discover, we cannot buy gift cards from these issuers in bulk at a discount, as we can with the merchants we are offering for redemption. Moreover, these options generally carry high activation fees, which we cannot afford to pay for on top of buying them at face value. 

That said, thanks for sharing your opinion so we can better understand what would make this experience more exciting for you. 

-Kyle

What a bummer for me to read this, Anthony. I only wish we had a chance to impress you with our program before disappointing you with this change. 

Please know we will continue to honor your sign-up bonus: 2% for 90 days. After that, we hope PerkStreet’s cash back debit card is still the best checking account option for you. We certainly value your business and hope you’ll try us out with this new rewards program before closing your account. 

If there are any other questions I can answer for you, please ask. 

-Kyle

Sorry to disappoint you, Elaine. If there are any questions I can answer for you about the changes, please ask. We are here to make sure you don’t feel left in the dark on this. 

-Kyle

And hats off to Kyle.  I don’t think any big bank would have anyone  responding to comments regarding an announcement like this.  You wouldn’t even have the option to post a comment.  I appreciate the personalized effort to do damage control here…

Hey Venus, 
I like to think of PerkStreet as more than just a rewards program. I look at our fast customer service, our online community, and our savings tools (StreetSense, Envelopes, more to come) as a total package. The difference between us and all our competitors is our transparency and our attitude of genuinely wanting our customers to succeed, conquer debt, and live healthy financial lives.

We liked the idea of giving our customers the incentive to save $5K in our accounts for emergency funds, but unfortunately 90% of our customers just weren’t realizing that dream. We remain focused on the vision of more rewards for more people who are avoiding debt and spending on debit. It looks as though your best option for your $5K may now be another savings vehicle. But don’t lose hope on us when it comes to rewards for spending responsibly. 

-Kyle

Awful business decision from a customer satisfaction perspective. The 2% was why I came to Perkstreet, and why I will leave now that it’s gone. Gift cards to stores I try not to shop in are not an incentive. Deleting the $5k 2% bracket because “Many of our customers have told us that reaching a $5,000 balance to
earn 2% cash back isn’t possible” is incredibly insulting to those of us who save and plan. It certainly is possible, hard work pays off!

Never thought I’d see the victim card used like that here. How does this match your stated goals as a company of promoting savings and responsibility with money? It doesn’t. Your position is that, for those who accepted our original incentive, that you aren’t who we want to attract as customers any longer. Message received.

I work at chase and if you have over 10000 in balances I can get you a freedom card that leaves PerkStreet in the dust

Hey ahuggs, 
I’ll explain the 22 perks for $20 deposit to help clarify this. We have always been upfront about the fact that we buy our merchant gift cards in bulk at a discount. That means we spend about 90 cents per perk for these rewards. The MasterCard gift card rules have changed and we cannot get them in bulk. Moreover, they have a sizable activation fee we have been absorbing. In order to offer statement credits in lieu of MasterCard gift cards – which many customers have asked for — we need to charge 22 perks for a $20 statement credit. This is meant to keep our cost the same regardless of which redemption option you choose so we can keep the options the same for everyone. Make sense? 

I hope this helps. We are committed to remaining just as transparent as ever. 

-Kyle 

Yes, Scarfireweb. 1% on non-PIN purchases will still be unlimited. Thanks for sticking with me to make sure you understand all these changes. We really don’t want this to confuse people. 

-Kyle

I can’t really see where it has be improved for me.  I don’t shop at Amazon, Apple , or iTunes so the added bonus of the 2% does me no good.   If I am going to get something at Target, Walmart, or BestBuy I tend to go to the brick and mortar store to avoid shipping fees, compare prices and brands, or as Dave Ramsey advises use cash to get the best deal.  So the online bump doesn’t help, and you require the $5,000 to get 2% on in-store purchases.  So, no improvements there.  

As far as the friends bonus, I have no idea how you are going to pull that off logistically, so you may have to explain that one better, are we going to have to link our accounts to other users we know, what if our bills aren’t rung up at the same time, ie someone else is in line between us, or another member of our group is paying in cash.  Are we going to have to have things rung up together and then have the cashier split it out when we pay.  If we aren’t required to list our friends, then if anyone else in the restaurant uses a PerkStreet card are they considered our friend and we get the 2%?  Is it only specific locations that this benefit will apply?

And for those of us working to get out of debt and use our money wisely I don’t know that I have ever hit on one of the 5% perk locations, and I don’t go out of my way to make sure I do. My card gets used mainly for essential like gas and groceries. I stick to my budget and have been thankful for the 1% I have been making on my purchases.  That being said I have also looked forward to the day I was one of your top 10% that was getting the additional 1%.  

As it has been stated many other times 1% is better than nothing and I have no desire to go back into credit card debt in order to get a few dollars more.  The issue that I believe that this is going to cause for PerkStreet is that of those that stick around for the 1% how many are going to just put the cash in there knowing that they are going to make a purchase in the next couple days essentially keeping a zero balance?  I can’t pretend that I know what that will have on future offerings, but I cant expect that it will help.

As for the “carrot” motivating users to save, I hope I speak for a lot of others when I say that we are still motivated to save, but it is likely it will not be in our PerkStreet accounts.

Hey ahuggs, 
I replied to this same question from you above, but I totally understand this comments stream is getting too long to follow: 

I’ll explain the 22 perks for $20 deposit to help clarify this. We have always been upfront about the fact that we buy our merchant gift cards in bulk at a discount. That means we spend about 90 cents per perk for these rewards. The MasterCard gift card rules have changed and we cannot get them in bulk. Moreover, they have a sizable activation fee we have been absorbing. In order to offer statement credits in lieu of MasterCard gift cards – which many customers have asked for — we need to charge 22 perks for a $20 statement credit. This is meant to keep our cost the same regardless of which redemption option you choose so we can keep the options the same for everyone.

-Kyle

Thanks Robert, 
This reaction is a huge example of why we’re making these changes. Thanks for sticking by us and recognizing we haven’t abandoned you either! 

-Kyle

Mark, 
Make no mistake. As we continue to find better, more robust partnerships, we hope to be able to deliver even more redemption options and roll out new ways to earn bonus cash back. This is how it lays out right now, but we’re already working on adding to both lists. PerkStreet remains committed to finding new ways to add value and give more back to all of our customers. 

-Kyle

Too bad.  Bait and switch on me.  I would have had my balance up above $5k this month.  Given that my wife and I would be running several grand through this account it would have been nice.  Since only a small percentage of our online and brick and mortar PerkStreet card purchases would be through these merchants I won’t be enjoyin much @ 2%.

I’ll simply go back to my Costco AMEX and my other VISA and enjoy the solid 1% everywhere and not have to try to decide which card I should be using at which merchant…and I won’t be forced to take a gift card that I have to turn around and spend at the merchants that I don’t do much business with…or take an extra fee hit for getting my perks in cash in my account.

I guess your business model was bad or perhaps set up to go this route in the first place once you got a good amount of depositors at BankCorp.

Sad

Oh…and I forgot to mention the 9% fee to get my perk back in cash in my account since the M/C gift card is going away.  No worries guys, the wife and I will ride it out for the 90 days and I’ll spend my account down to $0 and close it.  Don’t worry about apologizing as I’ll take my floating $5k-$10k checking account balance back to my C/U.

Dan and the PerkStreet crew,

I don’t have much more to say than all the rest.  We just switched to PerkStreet, and only because of the 2% offer.  We heard about it from Dave Ramsey’s show.  You can bet, as we leave PerkStreet, that we’ll be letting the Dave Ramsey folks know about this.  Knowing them, as I do, I’m sure they’ll want to take a hard look at whether to keep endorsing your company.  I hope they don’t.

Perkstreet is no longer worth the hassle of not having a local branch due to these changes. I’m really disappointed with this move. We won’t be customers much longer. Hope it works out for you.

I have filed a formal complaint with the Better Business Bureau for a “bait and switch”  / enticement campaign.

Why not have two separate companies? One for customers that carry a larger balance and would follow the good, straight forward 2%. And another for people that can not carry a balance?

I see two problems here. The first is that we spent a couple of months last summer tediously moving all of our finances to PerkStreet because we were being rewarded for being good customers (always maintaining a balance over $5000).  The credit union we switched from had been our primary account for over 20 years, even when we moved out of state!  With PerkStreet, we loved being able to earn rewards without having to use a credit card and the overall philosophy of the company.  We’ve earned nearly $600 in Perks since last summer by doing exactly what we were doing before.  That incentive is now gone!  Completely gone!  Sorry, $50/$50 per year does not make it worth the extra hoops we have to jump through for non-pin purchases.

Secondly, I also find the tone very insulting.  Once again those who are responsible have to take a back seat to everyone else.  The old plan encouraged everyone to SAVE money so they had a balance of $5000 – which is a good thing!  PerkStreet has been a great company to do business with, but everything I thought was true of the company’s philosophy just went out the window!  We also will have to do some research and consider changing banks again.

That’s true – we were already getting 2% at Walmart, Amazon, etc., but with NO upper limit.  Now the maximum Perks we can earn at the 2% rate, even at this small number of stores and with maintaining a $5000 balance, is $50 per YEAR for online purchases and $50 per YEAR on in-store purchases.  This adds up to a huge cut in Perks for our family.  NOT happy about this new decision!

I understand the 2% is a huge deal, but 1% return on my daily spending is better than most savings accounts, considering that my BigNationalBank doesn’t even offer a interest earning checking Perkstreet is still a great option.  I understand being bummed about not making as much money but you’re still getting paid for doing what you were doing prior to signing up with them and before signing up most of you were probably earning $0.  So cheer up, turn the frown upside down, and enjoy the perks.

I appreciate the feedback by perkstreet on the comments
below as a lot of places wouldn’t respond to a lot of angry customers so props
for that but all I can say is wow. Here I have been telling friends &
family how great your guys card is which is going to come to a stretching halt
as of right now. I have kept a high balance 5k+ as required since I have opened
the account (x-fering $ in via ACH with the stupid $1,500/cap using 2 accounts)
I now keep well over 5k in my account.

That being said I am EXTREMELY disappointed right now. Rather then you guys
just come out and say you had a poor business plan you pitch it to us that your
actually doing us a FAVOR which infuriates  me because your basically
calling the customers that do play by the rules a bunch of morons.  It was made VERY clear from the beginning of
signing up that you guys wanted a 5k+ balance to dish out 2%. I had no problem
with this at all other than the stupid $1,500 cap per month to get the balance
there which by the way you had no idea what the cap was until you signed up.

Your type of service is going to appeal to people who manage
money better than your average Joe. If you can’t handle the balance minimums
then you shouldn’t have signed up, it’s not like it was hidden.  When I
first read about it I thought it was actually a pretty good plan, you guys make
some money off the swipes like any other bank that issues a card and then you
get at least 5k to invest somewhere else (times thousands of members) to pay
out the extra 1% bonus. 

You guys can’t figure out how to pay out an extra 1% by
takings millions of dollars from the customers who do keep a 5k balance and
investing it elsewhere to reward us? Give me a break, what has changed since
you guys started? You still don’t have to pay the extra 1% to the members under
5k so what is the problem? Are you guys really that bad at investing you can’t
figure out how to pay out an extra 1% by essentially your members borrowing you
an extra 5k+/month at 0% interest rate? Come on man!

So rather than be straight with us and admit your business
plan sucks, you guys are gonna try and pitch us on how your doing us a favor
instead by helping 90% of your members? Yea right. If I keep a 5K balance your
gonna give me 2% back at target which I already get 5% with on my Target debit?
Give me a break talk about a total f*** off reward for borrowing your bank 5k
interest free.  If I wanted to borrow 5k
a month from my bank it would be a hell in interest then what you guys pay us
with the extra 1%.

If you guys would have just said hey we are losing many hand
over fist because we don’t know how to invest member money then fine so be it.
I can’t stand when a company changes terms and acts like they are doing
everyone a favor when really a lot of your very loyal members who do keep a
high balance are getting the shaft because this isn’t what we signed up for. If
this was the program that was pitched to me from the beginning I would have
never loaded up a new checking account.  

It’s just amazes when someone that is in charge of such a
big operation such as perkstreet makes such a HORRIFIC public relations move.  A trained dolphin could make better PR decision.
 Just like the morons at Netflix when
they decided to split the company up and jack up the prices overnight. Yea that
went over great, what are these people thinking? Yes I understand that decisions
need to be made in business but to come out and pitch this the way you guys did
it is appalling.  You’re insulating the
people that do keep a 5k+ balance.  I
wouldn’t have been happy either way with cutting rewards but if you guys would
have just been honest instead I wouldn’t have had such a big problem with it.  I really don’t have much desire to do business
with companies that operate this way.  

You guys say on your site that the average American spends
$601 a week that could be put on debit card. 
That’s about $2,400 a month which under your new rule I would earn $24
in rewards even with keeping a 5k balance. So not only do you make that money
back on swipe fees you get to keep an extra 5k of my money interest free unless
I decide to shop at the retailers you choose like target which I already get a
way better cashback deal anyway.  At
which point you guys pay me another $24 for borrowing you 5k month after month.
 

I would have never wrote this if you guys would have wrote
the article different but to sit and insult the people that do keep 5k+ makes
me sick.  This decision and how it was announced
makes me think much differently of the company. 
I will be sure to tell my friends and family (the same people I was
bragging about my debit card to) to not even bother and look elsewhere. You
guys should have never got yourself into this business if you  were looking to target customers who can’t keep
a 5k balance because that is what this product was pitched around which I had
no problem with. I’m pretty sure I will be taking my money elsewhere, I really
have no desire to borrow 5k a month to you guys interest free.

You guys best believe I’m posting about this on facebook, my
wordpress blog, money saving blogs, message boards, & of course friends and
family. Might have to throw up some youtube vids as well, remember the customer
Bank of America tried to screw over? They were singing a different tune once
the video wen viral.  A company should
not be reward for such a stupid PR move., completely unacceptable and unprofessional
the way this was pitched.  Way to screw
over all 5k+ members who are nothing but loyal to you guys. If you wanted to
rework the program to help smaller balance people fine, maybe even up the 5k
min to 6k or 7k to make up for it but to close it down all the way not a good
move. 

If I was on the board I would want the CEO out making such a
bad PR move, you guys might wanna check Sea World see if they have some trained
dolphins for sale who could make better decisions than you guys.  End of my rant I’m so disappointed right now,
you are gonna kiss most of your loyal 5k+ trouble free customers goodbye after
this. 

~Chris

i don’t work for ps but i enjoy a good product when i see one

As another individual that has had 5k in my account because I’m a single male and honestly my expenses I can process as a Credit Charge are under 1k per month (food/gas mostly). I was looking forward to the day I would have 5k in my account so I may enjoy the 2% cash back. As of last month I’ve gotten close to 2k in my account was excited at the progress. Now I’ll be keeping only the ~800$ I actually use every month in this account because there is simply no point to do otherwise.

You keep spinning it as if the 90% are winning with these changes. Problem is 100% of us were here for the 2% unlimited (w/ 5k balance). That’s what made you special, that’s what made you unique, that’s what made you worth it. Perhaps only 10% were managing to keep a balance >5k but the other 90% were aspiring and working towards the day they would be able to reach that financial goal.

As others have said I have recommended PerkStreet to all my friends and family.

That ends today.

1% is still a good deal, plus the company is still good…unlimited 1% will still provide enough incentive for me to stay with perkstreet…though I absolutely will be sad about losing the unlimited 2% I used to do alot of free marketing for perkstreet by telling everyone about the 2%. What will Dave Ramsey say now?

I have never overdrawn a bank account for any amount, but I am not interested in being scared more for my own good, as you seem to be putting it. I already watch my bank account closely.

Perk Street seemed different to me. Now it seems like just another big bank. That makes it no longer unique.

Well put Chris, nice points in there…

thats the FIRST thing i did was pull my rewards out with the MC

Oh yeah, it was. I guess they did predict it.

I’m brand new to PerkStreet, and joined because of my money-savvy daughter and Dave Ramsey.  Being on fixed income, I thought the 2% cash back was a great thing – now I find that this bank is no better than some of the other greedy ones.  Unless this decision is reversed within the next week, I’ll be closing my account.  There were issues I wasn’t comfortable anyway, like their lack of security.

 I am also a new customer and will be doing the same once my 90 day introductory offer expires… Very disapointed in Perk Street.

I understand,(and thank you for staying with me on this)I’m obviously not upset with you personally, I do not envy your position. I just don’t get why PS is not as direct as it’s own CEO. Dan O’malley said in an email response to my disappointment “There is no sugar coating it- you will earn less perks and I’m sorry for that.” That is what all PS customers deserve to hear; it is honest and direct. It’s a shame it took a personal email to the CEO of the company to get such honesty. 

 Very well said…. I completely agree!!!  I strongly advise you to read all these posts as many, many customers will bring their banking elsewhere!!!!

Mlannan, 
We understand we may have put you in a position to make a decision. We hope you’ll see the benefit of continuing to earn unlimited cash back at PerkStreet if that’s what brought you to us. We value you as a customer and are committed to continuing to treat you well for banking with us. That said, if you find a deal you think would be better for you, personally, of course PerkStreet wants you to do what’s best for you. We can only hope the best thing for you is to continue banking with PerkStreet. 

-Kyle

Thanks Rawright, 
Of course we appreciate your moving to PerkStreet from a long-standing relationship with another institution. But I want to clarify that unlimited cash back is NOT going away at PerkStreet. All the non-PIN purchases you make will continue to earn you at least 1% cash back. Some of the 2% categories and the 5% PowerPerks do have limits, but those limits don’t impact your ability to earn at 1%. 

I know 1% feels like a lot less if you’re used to unlimited 2%, but some of our customers have earned over $1,000 per year without ever maintaining the $5K balance currently required to earn unlimited 2%. 

I hope this helps clarify the changes for you.

-Kyle

Kyle Psaty
PerkStreet Financial

Just jumping in here to make sure that people don’t misread Mike’s interpretation (which I answered in the same thread below). PerkStreet is NOT doing away with unlimited cash back. In fact, now everyone has the opportunity to earn unlimited 2% cash back when they Spend With A Friend at restaurants, bars and coffee shops. All non-PIN purchases that don’t qualify for 2% or 5% cash back will qualify for unlimited 1% cash back.

-Kyle

Kyle Psaty
PerkStreet Financial

Thanks for seeing the value of unlimited cash back on debit, David. So you know, we have notified Dave and his team about the changes. We still share the same vision for great debit card rewards without the risk of debt. 

-Kyle

I’m curious as well, where is this card?  Frankly I don’t believe it exists

Thanks very much Socialism, 
I understand why you’re upset. And I know PerkStreet has put you in the position to potentially reconsider your account with us. But please understand that this is not about punishing anyone. It’s about re-creating our program so it’s something more people can get more from.

If you have any specific questions about the changes, please leave them. I’ll try to respond as soon as possible. 

-Kyle

Kyle Psaty
PerkStreet Financial 

And we appreciate you taking the time to consider your options logically, Jason. 

I’m glad you see the value of the account, even though it’s not the same one you signed up for. Again, I’m sorry that the timing has been terrible on this announcement for you and our other, super new customers. We certainly appreciate your sticking with us! Your rationality in this scenario is certainly admirable. 

I should also note that PerkStreet is committed to continuing your offer of unlimited 2% cash back for the first 90 days your account is open, since that’s the introductory rate you qualified for at sign-up. After that, you’ll get the same deal as everyone else, outlined in this blog post. 

Thanks again and have a great day. 

-Kyle

Thanks for commenting, Missy. 
I understand why you’re upset and I’m sorry that this change has disappointed you. I would note that branch banks spend on average about $800 per year, per customer to stay in business. If that number doesn’t make you re-think the value of a branch, I’m not sure what will. Please know PerkStreet is committed to continuing to offer unlimited cash back for spending on debit. We’ll continue to take all the money we’re saving by not having branches and invest it in customer service and cash back rewards.

I get that you may have to make a decision right now, but please shop around, read fine print, and make sure you’re making a choice that’s best for you. If you find something else is better, I certainly can’t blame you for going with it. PerkStreet hopes you get what’s best for you, even if it’s not a PerkStreet card.

-Kyle 

Kyle Psaty
PerkStreet Financial

The mastercard redemption option is now off the website.  That took a day.  If I donate to disaster relief, will any of the money go to the person who made this genius marketing decision.

Thanks Jimmy, 
We are committed to clarity here, and I appreciate your sincere comment as a 1%er. I’ll answer your questions about Spend With A Friend, but please know we’re planning to talk a lot more about how this works in advance of April 4th to make sure you and all the rest of our customers understand this new component. 

Spend With A Friend has nothing to do with who referred who. It doesn’t matter if there’s a person between you in line, or if you even know each other. It’s this simple: If you swipe your card at a restaurant, bar or coffee shop and another PerkStreet customer swipes at the same location within an hour of that, or if another PerkStreet customer swipes first and you swipe within an hour, you’ll both be earning 2%. 

It’s our way of taking the special community at PerkStreet offline, and rewarding people for telling their friends about the cash back debit card at PerkStreet. If two PerkStreet customers swipe within an hour of one another and they’ve never met, well that’s just a positive result of the PerkStreet community growing. 

I hope this helps. Thanks for sticking with us. And yes, I hope everyone still has incentive to save after the change. That’s just part of being responsible with money and PerkStreet has always promoted that. 

-Kyle

Thanks for the reply. There is no extra fee when I use my B of A card with Sprint, so it was a little surprising. 

Thanks CVP, 
I certainly didn’t mean to be dishonest with you. If you’re used to earning unlimited 2% everywhere with PerkStreet, then this will mean earning fewer perks. You’re right and so is Dan. I guess you’re taking issue with this blog post and the email we sent you to communicate the changes. If the way those were worded didn’t do a good job of notifying you of this fact, then as a member of our communications team, I’m sorry. Sorry if we confused you; that was surely not our intention. 

-Kyle

Good suggestion, ahuggs, 
An analyst here at PerkStreet who’s a good friend of mine looked into this specifically. It might have been cheaper than issuing new MasterCard gift cards each time. You’re right. But it would have also cost us to reload them each time. Additionally, the fees associated with prepaid cards aren’t something we could feel good about, or really avoid because of the way prepaid works.

By charging 22 perks to put $20 into your PerkStreet account, we believe we’re helping you avoid the fees of prepaid and doing something we can sustain. And it also gives you the opportunity to EARN MORE PERKS by spending that $20 on your PerkStreet card. I hope this helps you understand why prepaid felt like a less attractive option for our customers. Thanks much for sticking with me in the comments here and having this conversation in public where everyone can learn from it. 

-Kyle

Mike, 
This is a Sprint issue, but it can be avoided by my understanding. There aren’t many merchants who can charge this fee. Here’s a blog post we wrote about this problem back in July, with details about how to avoid this Sprint fee. 

http://blog.perkstreet.com/pinless-debit-card-transactions-can-cost-you-perks/

-Kyle

Thanks Taylor, 
We are sorry to have let you down. I understand why you’re disappointed. Hopefully you can find a checking account that offers you a better value personally. If not, PerkStreet would love to keep your business and continue to offer you unlimited rewards for spending debt-free on debit. 

Thanks for sharing your thoughts. Im hear to answer any questions you have. 

-Kyle

After your slimey initial letter trying to cover up your bait and switch, you continue to pursue the same unethical approcah.  You claim “We’re going to continue to honor…” and “This is the reason we gave 30 day notice..” like it is something you did out of goodness, when in truth you had to do this or be in violation of federal banking law.

The ONLY reason I picked PerkStreet was the 2% back with a $5000 balance. The plan was simple. No shell games. Incentives to save and make all purchases with a debit card. The simplicity of it is (or was) wonderful. I was able to buy my products wherever I wanted and get the reward. Now, only if I use the select monster box stores will I get any extra benefits above the 1%. I don’t want anyone trying to control or incentivize me to shop at a particular store.

I think PerkStreet prematurely pulled the plug on this. I have seen momentum building that will now cease. Everyone who was striving to get to that $5000 saved in the next year or so no longer has a reason to do so.

My satisfaction with PerkStreet has seriously tanked. I have taken a couple of surveys, so I know they are trying to find out what their customers think and want, but they screwed up on this one. I do not think I am alone in this thought, and I hope the execs have the brains and cajones to fix this mess.  

I don’t really care why they made the change (although Mike your point was excellent) I just want what I signed up for.

While I can appreciate Mr. O’Malley being a 2% customer and he’s also impacted, I wonder how much his bonus will go up by increasing PS’ bottom line?  This change is very discouraging and I’m trying to understand the business model.  I have to think most of your >5K customers are here for the 2%. You are going to lose your customers that provide (I assume) the majority or certainly a sizable % of your assets.  When your assets dwindle this impacts your float.  During the planning phase, I wonder what % of >5K customers you anticipated you would lose and this move still be positive?  PS is no longer motivated to keep the >5K’ers so we apparently are not the cash cows.  It must be (projected anyway) more profitable to pay 1% on most purchases to all customers then continue paying 2% to the less than 10% of >5K’ers even though you will lose a chunk of us.

I think a compromise is in order.  You could grandfather your >5K’ers and change your marketing hype…you would then be “doing what you say you are doing”.  I, for one, don’t care about losing the MC, amazon, best buy, target, etc. certainly provide many options or I can sell the GC for a little less then face value.  I do take exception to your “you and a friend” at the same restaurant earn 2%.  How often is that realistically going to happen?  That’s a small token to me and those I referred to PS because of your great program…”Hey Bob, let’s meet for lunch and we’ll both use our PS cards and enjoy a whopping 2% on our $10 sandwich.  We’ll each get 2 dimes back instead of one!  Oh BTW Bob, sorry I so strongly emphasized the 2% on every purchase when I touted PS to you”.  Guess who is now NOT “laughing all the way to the bank!”

Sincerely,
Future Ex-Customer. 

Thanks JPD, 
I certainly don’t mean to imply that we don’t value yours or anyone else’s business. Of course we do. Of course we want to continue serving you all. We want to be able to continue supporting debt-free lifestyles among you. We want to provide you with the best customer service we can. We want to continue rewarding you with unlimited cash back for spending responsibly. And we absolutely don’t want to lose you. 

When I think about the feedback you’ve just provided me, I understand what you’re saying. Perhaps it does seem like we don’t care when I write that “we hope you go with whatever’s best for you,” but the truth is, everyone at PerkStreet wants what’s best for every one of our customers. That’s why we created this business — to treat people like people and offer something that’s truly different when it comes to debit. I certainly didn’t mean to offend you or anyone else by sharing this most genuine sentiment. 

-Kyle

Sorry we let you down, Mlannan. Please consider sticking around for the unlimited cash back we’ll still be offering as you continue spending with us. 

-Kyle

Thanks, jdragonw, I understand your disappointment here. And I speak for everyone at PerkStreet when I write that I’m sorry we’ve let  you down. 

More customers than we anticipated viewed the $5,000 balance as a target for an emergency savings. The truth is, many of these people could be getting a great interest rate on their $5,000, however, especially while they’re trying to reach that number. It’s taken many of our customers over a year of saving to reach that benchmark, if they were even saving anything at all over time. Many people live paycheck to paycheck in this country. We didn’t feel right dangling that incentive in front of so many customers while knowing full well they weren’t reaching it.

Selling a product that only 10% of customers can actually take advantage of is no way to build a reputable business. When we realized this was happening, we felt we had no choice but to make the changes. I hope this helps you understand our motivation here at PerkStreet.

-Kyle

Kyle Psaty
PerkStreet Financial

Cie, 
Sorry if we’ve let you down with the changes and the way we communicated them. PerkStreet takes a lot of pride in being honest and transparent. It’s why I’m leaving this comment for you here. 

I certainly don’t mean to come across as condescending. I’m trying to answer people’s questions. Sorry if some of these comments sound like more of the same. These thoughts are my genuine feelings. I guess I only know so many ways to express the disappointment we have about letting folks like you down, and the remorse we feel for disrupting your lives with a change we felt we had to make. 

Thanks for sharing your views here and having this conversation with me. 

-Kyle

Thanks MoranMom, 
I’m sure finally reaching the $5K felt great, so this is a major let down for you. But think of all the other customers out there struggling to build that savings and not reaching it. We felt it would be better to reward them for banking with us and for spending responsibly on debit, than create an incentive they simply couldn’t reach. 

If keeping the $5k in order to get 2% cash back in-store at the major retailers listed above isn’t worthwhile to you, we understand you moving that $5K into another account that bears interest. But please think of all the money we’ve rewarded you with for spending the money you must spend on the things you need to buy. That isn’t going away. 

And whatever you’ve earned with us as a 1% customer should be going up moving forward as a result of these changes. I know it’s not unlimited 2% on all non-PIN purchases. I feel bad that this has tripped you up. And I’m sorry. Please let me know if there are any questions I can answer to help you make sense of these changes. 

-Kyle

Kyle Psaty
PerkStreet Financial

“We didn’t feel right dangling that incentive in front of so many customers while knowing full well they weren’t reaching it.”

I don’t think anyone believes this. It’s really all about the bottom line. I think we would appreciate PS being upfront about that.

Let’s assume the above quote were true:
1. PS could have lowered the 5K requirement to accomodate more people. Not take the incentive away completely.

2. It is insulting to those with balances under 5K to assume those people weren’t reaching it. That reads like you think they never would. Perhaps they would in the future. Perhaps they had the money elsewhere and would eventually transfer it over when they got more comfortable with PS.

I think you should be more careful in how you spin this.

Gertrude, 
Having folks race to redeem MasterCard gift cards with the tenacity they did definitely caught us by surprise. If there are any questions I can answer for you, please let me know. I’m here to help you. 

-Kyle

 Kyle,

Are you a part of Occupy PerkStreet? Your statement has a very large of socialism tinge to it and its one of the reasons why so many 5k+ers will no longer be using your banking services.

“But think of all the other customers out there struggling to build that
savings and not reaching it. We felt it would be better to reward them
for banking with us and for spending responsibly on debit, than create
an incentive they simply couldn’t reach. ”

I think you misunderstood her.  She had a goal of SAVING money.  She finally obtained that goal because of PerkStreet’s incentive of 2% cash back (with the help of tax refund).  In her life, that is a HUGE deal.  Now that incentive has been taken away.

Anyone can reach a financial goals.  Moranmom is a perfect example of doing this.  She reached her goal.  Everyone struggles to build savings, but people CAN reach it through financial discipline and sacrifice. 

This new rewards program has little or no benefit to those who have already made the financial sacrifice in their lives to obtain a savings fund.  That is why people like MoranMom are taking their balance out of PerkStreet.

This might come across as emotional and immature, so I appologize in advance, but I’m upset and disappointed.  And honestly, I can’t point out anything that hasn’t already been mentioned.  Obviously PS has some smart customers, who are not going to believe the “pitch” you’re trying to sell with these changes.  

So basically I’m just here to post pubically that I’m another one of the many disappointed customers, who will be moving my 5k+ out, and closing my account come 4/4.  You’re bank is not worth the hassle anyone.  Very disappointed.

Kind of funny…  You’re changing the perks for the better, for the “90%”, but in less than 24 hours, the cash Mastercards are gone.  Now the perks that I’ve been saving for, are only good for a giftcard(which I don’t want), or cash(with your fee).  This is totally bogus, considering this is not what I signed up for.  And now if I want my cash, that I’ve been building up for well over a year, I’m going to be giving you guys 50 bucks or so.  That’s fair…

Like I said before, and I’m sorry to say it, you’re no longer worth my business.  It was great while it lasted.  Bring back a legitimate 2% cashback program, and I’ll be back; but the 6 stores, online, in store, pay with your friends crap just isn’t going to cut it.

Good luck to you.  I hope you lose Dave Ramsey’s endorsement.  It was fun while it lasted.

I’m a 5k-er and I don’t feel PS values me as a customer as it stands right now. I guess PS will value me after I’m no longer earning as much as I am at 2 percent. I may move my money elsewhere. I’m definitely not keeping the balance above 5k anymore.

I’m more bothered by the spin that was put on this. I would have preferred if PS would have been upfront and say they could no longer afford to maintain the 2 percent incentive that many of us signed up for.

Fellow customers screwed by JerkStreet….

Read some decent suggestions as to where to take your business- thanks. 

I’ve opened a High Yield Savings account with BOI and it’s paying 0.8% APY (almost 1% for no minimum balance, no fees and only takes $100 to open !!!!).  0.8% x $5000= $400. 

…not going to be enticed into blowing money at big box stores to earn a lame gift card!!!

https://www.bankofinternet.com/bofi 

they’ve also got a rewards checking account I’m going to look into.

Bye Bye JerkStreet!

Just a warning for all of those who managed to get what was left of the MC gift cards.  They have an expiration date.  One of the people I directed to PerkStreet got a card and set it aside to wait until they had more.  It ended up expiring and they lost out on the $100.

I will now consider moving out of PerkStreet and back to my local bank. 2% Perks made it worthwhile to send my money to a locationless bank, but now I fail to see the benefits.

A few thoughts on ideas being tossed around here:

-My assumption is that many people’s $5k was part of their emergency fund, and that Perkstreet offered a better return (2% on all card spending, amounting to perhaps $300 extra a year over the standard 1%) than a savings account (maybe $50 in interest a year).  Where to park that $5k now is tricky as there likely isn’t another debit card out there who’s going to offer the same 2%, so Kyle is right in that regard:  Perkstreet’s still one of the better debit cards out there.  The best “no risk” place to park your $5k is something like an ING savings account where it’ll earn barely any interest.

-However, the question of whether it makes any sense to put your spending on Perkstreet’s card vs. a credit card is an entirely other issue.  Let’s make the assumption that the kind of person who’s able to put $5k in checking isn’t dumb enough to carry an ongoing balance on a credit card.  If you can accept that, there are MANY better places to do your spending than on Perkstreet’s card now.  There are plenty of credit cards that will give you more rewards TOMORROW, just for signing up, than Perkstreet will now give you in the course of a year.  Here are some ideas:  

http://www.mymoneyblog.com/get-free-100-bonuses-from-credit-card-promotions 

http://www.nerdwallet.com/blog/top-credit-cards/nerdwallets-best-rewards-credit-cards/ 

-Perkstreet’s warnings about the dangers of credit to this 10% of their customer base is ironic — these are precisely the folks who are likely to game the credit card companies and pay off their balances every month.

-I’ll be keeping my debit card with Perkstreet for now, but it’s only purpose will be to pay off credit card balances and to write my mortgage checks.  All my spending will be on the clearly superior rewards credit cards, and my extra $5k will go into an interest bearing account. 

-I think I’m going to wait until Bank Transfer Day to leave Perkstreet for good, just for fun.  Maybe if enough people leave at once it’ll get the company’s attention.

Perkstreet pulls a Netflix!

I am so disappointed and somewhat offended by the way you’ve gone about this. To suggest that this is the “ethical” thing to do is nonsense – this is finance, not charity – this is a capitalist country, not socialist. Without sound offensive, as I care very much about my fellow American and his/her welfare, I am NOT supportive of PS deciding how to distribute the perks of my efforts to save $5k. Guys – you’ve just taken off the table your biggest selling point – now you are one of the many in a sea of undifferentiated banks. You are now competing at a disadvantage instead of at a major advantage – and I can no longer help in bringing you new accounts as I once did. I will take my $5k (which was actually quite a bit more than $5k which you profited from holding) and find a better home for it. You guys made the wrong move here, plain and simple

I completely disagree with your critique of Kyle.  Kyle has been doing an excellent job.  He’s being extremely professional and supplying what information he has available.  He’s doing an excellent job.  Keep up the good work Kyle, it’s appreciated by us (even the ones unhappy with the changes)

-JOsh

I’d be willing to bet the breakdown is along the lines of what they were expecting.  IMHO I’ll bet that there were too many higher tier people spending too much money that Perk street was losing money.  There’s a reason why nobody else offers 2% cashback (outside of ones that require associated accounts, etc).
Certainly sucks either way

Check your math.  You’re going to be earning *$40* every year.  That’s a far cry from $400.  Somehow I see you complaining to BOI in a year about how they lied to you about your potential earnings.

I have read a lot of the comments on this page, and I should
begin by saying I agree with nearly all of them. I think the recent decision
was the wrong one, and I think it was made in the wrong way.

That said, let’s all take a step back and remember what it
was that attracted us to Perk St. to begin with. It probably wasn’t an exclusively financial decision. For me, joining Perk St. was an opportunity
dump the mega-bank who had nickled and dimed me to death. Leaving that bank felt incredible.
Equally important though, joining Perk St. was an opportunity to give my
support to an outfit that was starting something new and different.  It seemed to me that Perk St. was one
of the few companies left that actually cared about their customers
and was willing to give up some level of profit to help the people who drove
that success. Keep in mind, the only reason we’re all complaining about the
reduction in our perks is that these guys gave us something that DID NOT EXIST
ELSEWHERE. These guys found a way to do something that no else could or that
nobody else cared to do – and they made it work FOR YOU.

I’m disappointed by this decision – in my mind it was the
wrong decision – but I’m not ready to leave the bank or get too bent out of
shape just yet. These guys have proved themselves to be creative and
willing to do things for their customers that other banks won’t do – and based
on that I hold out faith that they’ll be able to do it again.

Perk St. – keep in mind, your customers are self-selecting, they are the individuals who are most highly motivated to find the “best” bank, and they are willing to put up with some discomfort to do this. This highly motivated customer base is a huge boon when you’re doing right by them, and a huge liability when you make them feel as though they’re being taken advantage of.

Perk St – I put it to you – we want to believe in you, help us do that…

As many have said before me, I found the tone of the announcement insulting and hypocritical. I keep a balance of over $30,000 just because I wanted to reward back PerkStreet for their reward program. In some sense, it felt like we were working together, until this. Now it feels like just another bank, including that particular brand of marketing hypocrisy that really turns away customers.

Thanks for weighing in, Jack. We’re sorry if we’ve let you down. It’s never easy to upset customers, nor is there ever a good time to share news that means you’re getting less, even if it means most customers getting more. We appreciate your weighing in and hope you’ll consider sticking with us to continue getting unlimited rewards. Thanks for being a customer.

-Kyle

Thanks Josh, 
I appreciate your support, and your recognizing why I’m continuing to be here to answer questions. 

We know some folks are upset. And that upsets us enough to stay put and hear them out. Serving people to the very best of our ability sometimes means being uncomfortable. PerkStreet’s staff would rather be uncomfortable than leave our customers to determine what these changes mean on their own. Even if you plan on leaving us, we would never want you to feel like we were leaving you. That’s just not how we roll

Thanks again, sincerely. 

-Kyle

What my fellow 5ker’s may not realize is that PerkStreet WANTS us to leave. By redeeming the most perks, we were the least profitable customers.

Under the new system, we will continue to be the least profitable customers (although to a lesser extent).

So go ahead and switch to a better bank, it’s a win-win situation for us and PerkStreet.

NH, 
Thank you. Thank you for remembering what makes us different. Thank you for remembering what we’ve done for you in the past and holding out hope that we can continue to do great things for you in the future. I know I speak for everyone at PerkStreet when I say we want to live up to that expectation and will continue to make our best effort to do so. Stay tuned. We’re not done serving you yet. 

-Kyle

 I am only disappointed because the reason for the change was not straightforward.  We all understand you need to make a profit and, if put that way, there would not be as many negative reactions.  I will stay with Perkstreet (I am a >5k person also) but don’t shop at the retailers for 2% listed very often nor do I use the stores where the gift cards are available either. Perhaps in the future these will be increased. I respect what PS is doing but honesty is always the best.  Prayerfully my comment is not rude but just seen as expressing my opinion.

 I do think Dan should consider the grandfathering option but perhaps that is still too much for the bank.

I am in the 10% of people who have been earning the 2% cash back. I’ll miss that part of the program, but it really seems like a lot of whiny entitlement through these comments. Act mature and respectful people. This is a business and businesses are ever-changing and evolving. 

 I’m sorry Damien, but I do not believe that to be true at all.  If you really believe that the PerkStreet team sat down, discussed, and in the end concluded that they wanted the 5ker’s to leave, then honestly, I don’t think there’s any convincing you otherwise, because that is a really tall tale. It’s one thing to be upset about this move by PerkStreet, it’s something completely different to turn it into what you are implying here.  If you were in their shoes, I can’t imagine you would think it fair to be cast in that light.

 John, I am really proud of your attitude that pushed you to become debt free and grow your 5k balance.  I am not there yet, and it will take me some time, but I have that same determination and I can’t wait to reach my 5k mark.  That said, I think you, like the rest of the folks here who have complained quite extremely about this change, should just take a step back and realize what we have here with PerkStreet.  I don’t know about you, but I signed up for PerkStreet not simply because of the 2% rewards (which I hope to earn once I, like you, reach 5k).  I also signed up with PerkStreet because they are a change in culture and attitude when it comes to banking.  PerkStreet is still GIVING us something.  The other banks are doing just what they have always done to us, robbing us blind and putting our money in the pockets and get-out-of-jail-free parachutes of their bigwig execs.  I might be upset about this change, but no way in hell am I going back to what I had before with a regular bank.  PerkStreet is still looking out for their customers, you included, and sometimes change is required to keep the boat afloat.  I am sure you are a reasonable person and can understand that, right?  Let’s not beat up the people who are actually STILL working hard to help us and give us something better.

It’s just so sad today that even when folks like PerkStreet are trying to help out and make the world (of banking) better, as soon as they do something that we don’t necessarily like, they become the enemy.  There’s no understanding, no reasoning, no middle ground, you are either friend or enemy.  I thought people were better than that.  I can’t imagine that we hold ourselves to that same black-and-white standard.

Yes, Steve, you are correct. I was diligenty saving money and was pleased that my tax return helped us reach our goal of getting 2 percent rewards from Perkstreet bank. I do like Perkstreet, and am not closing my account. Instead of leaving my savings with them, I will transfer it to another bank that will pay me the best interest I can find. There is no incentive to leave it with Perkstreet anymore. I was not disappointed that I was only receiving 1 percent rewards when my balance was lower. I liked the goal of saving money with Perkstreet and being rewarded for it. I thought about saving money everytime I swiped my Perkstreet Card.” Hmmmm…. If I had more in savings, I would be getting double the rewards….. I need to save more money with Perkstreet!” Well, I feel a little like it was a bait and switch. I don’t think that those earning 1 percent were upset they didn’t earn 2 percent. I wasn’t upset. It gave me goal of saving money. I would have tried for years with a good attitude to save my money with Perkstreet to reach that goal. Please, Perkstreet, don’t do this to me. I really like you and don’t want to feel the way I do.

We are getting closer to baby step 3 and were looking forward to putting our fund into perkstreet to get the 2% cash back as this would be a better “interest rate” than a money market account.  Now we’ll be exploring other options.  Sorry Perkstreet.

It’s my pleasure to answer these comments personally, Bonnie, because I care about everyone of our customers personally. I couldn’t work for a bank so driven to help people live better financial lives if I didn’t care about the people. I know everyone at PerkStreet feels this way, and we’ve all been answering questions about the changes in different places and different ways. Dan has responded to hundreds of personal emails from customers in the last few days. 
If you’d like to participate in that line of communication, you can email him personally at domalley[at]perkstreet[dot]com. I’m sure you’ll hear back from him if you do.

Brian…thanks for your post…Great information….I’m thinking  April fools day would be a great day to shoot for…April Fools falls on a Sunday this year so Perkstreet won’t now what hit them till they show for work Monday morning on the 2nd.
 

Jack, 
Thanks for sharing your situation. Keep fighting the good fight! Baby Step 3 is a huge step toward your financial freedom. We certainly hope we haven’t discouraged you from pursuing that with this change. Hopefully you will still be able to earn great rewards while spending safely on debit, given that there are surely expenses you need to make and can make with a card each month. We value your business and appreciate your goals. We’ll be continuing to write about further ways you can pursue your goals daily here on our blog as a show of support to you. I hope this helps. 

-Kyle

Doesnt seem like shes unhappy to me, sounds like shes quite satisfied, and she wasnt finding that satisfaction where she was previously.

this certainly seems to be the case judging by your posts…. you’re upset that they seem to be treating you in a condescending fashion.  They’re a business.  If you don’t like what they’re doing, then employ your independence and go elsewhere. Personally Kyle’s constant responses are enough for me to indicate a level of customer service not seen anywhere else.

I’ve seen several posts saying that Dave Ramsey should drop his endorsement. I would be very surprised if he were to do that. The bottom line is that Perkstreet still follows Dave’s principals despite the fact that they don’t offer the unlimited 2% any longer.  I’ve seen several posts where people came to know Perkstreet through Dave Ramsey, but in the same post say they are going to use credit cards to get their cash back. Seems contradictory if you are following Dave’s plan. We all know how strongly Dave is against credit cards, so why would he drop an endorsement on a company that still offers the best rewards you can get with a debit card?  Dave’s motto with credit cards is simple, “You play with snakes and they will bite”.  The credit card companies are not out to do what’s best for you.  Do you really think they offer these rewards out of the goodness of their hearts?  They are betting on the fact that 60-70% (from Dave and Dan) of people don’t pay off their balances each month, so they reel you in with the cash back.  If you pay off your balance each month then fine, but don’t think they are giving you rewards because they are looking out for you.

I saw some say that the debit card is more risk than a credit card. I’m not sure how you come up with that. The debit card is protected with MC’s zero liability policy, has a strict daily spending limit, and doesn’t put you in debt.  A credit card balance is debt, even if you pay off the balance each month. Dave explains that debt is risk.  What happens if you have an emergency come up and you have to use the funds that you were going to pay the card off with on that emergency? Well, in that case you would be carrying a balance into the next month and paying interest my friend. Now you have a month’s worth of expenses on a card and the current monthly expenses are now due. That…is risk.

I will be staying with Perkstreet.  I guess you can say I’m here for the experience.  I’m a beta tester for the digital envelope system and can tell you that it will be great (as soon as balances update in “real” time).  It is basically Dave’s cash envelope system for use in the debit card world.  I’m one that would occasionally touch the $5k mark but spent most of the time below it while working through baby step 2.  Yes it would have been nice to have someday enjoyed an unlimited 2%, but I’m happy with what they are GIVING me.  I’m still getting money I didn’t have before while spending on a debit card like I would be doing anyway…even if you have to use 10% more of what THEY gave you to put money back into your account. I feel that Kyle, Dan, Brendan, Jennifer, and all the folks at Perkstreet are genuine and are looking out for us while also trying to keep the business that they run profitable. There’s nothing wrong with that.  I’m anxious to see things like the mobile app and the savings account to broaden this experience even more.

I don’t follow Dave’s plan to the letter or else I wouldn’t have the 1 credit card that I still hold. Perkstreet’s business philosophy does, however, and that’s why I think Dave will continue to endorse them.

I think the biggest issue is not the change in perks…even for those of
us who have made out very well w/ the old 2% on everything and are
disappointed to know it is ending so soon (anyone here think it would go
on forever??), the new structure isn’t terrible, and it’s probably
still better than what we had before moving to PS.  The problem is that
they had a model that was not working for them and instead of being
silent to that fact (most of us upset about the change could have diagnosed the reasons for ourselves) when rolling out the new plan, they had
to add in a narrative excusing the failure as rather their intentional and altruistic motives behind the changes.  The first sign of a liar is how
much they embellish or include unnecessary details in their story. 
Should have
just rolled out the new plan w/out painting it to be something it
isn’t.  Given the Enron’s and Bernie Madoff’s in all of our rear view
mirrors, the manner in which this has been handled should at least set
our suspicion meters to the “on” position.  These guys are not arriving
at work each day wondering how they can pay the “most” to “most” of
us…they are trying to run a company which means devising ways they can
pay the “most” to the company.  Nothing wrong with that.  If we get
perks as a symptom of their efforts, great, but let’s not be so naive as
to think this is an altruistic change in model, or that they are who
they say they are.  It is a change for the company’s survival.  The
reasons behind the embellishments should be in the ranks with all those
things that make you go “hmmm.”

Thanks for asking, Toonce. I didn’t mean to send you on a goose chase to find your answer. Here’s what Dan, our CEO, wrote in response. A link to the comment is at the bottom. 

Stacia – It’s tough for me to read your comments, as I’ve been seeing your comments on our Facebook wall for a long time. I want to respond to several of your points.

- Dan

LINK: http://www.facebook.com/PerkStreet/posts/360917507275414

After really thinking about it,  I came to this conclusion.  I was looking forward to getting to 5k and 2% on everything.  I know with the economy and need to be profitable the landscape changes and this is just another example of this.  Perks should be looked at as a bonus; a perk if you will, instead of something we are entitled too.  Now if Perkstreet were to add a monthly fee of some sort than yes I would be fired up, but reducing cashback while being a bummer should not enrage us to threatened to leave.  We are not losing anything, other than the amount of perks we can earn (which we dont’ even have to be given).  I am sure as Perkstreet continues to go grow that we will see more perks, better redemption, and higher rates come our way.  This is just a hiccup in the road to growth.

PS “was” a simple, better alternative to Big Bank.  Now they are just like all of them, changing perks every month, trying to steer you towards certain vendors, etc.  Nothing different here, I guess.  I joined PS over a year ago, always kept over $5K to earn the 2%.  However, I always kept my old bank acct open – just in case.  Plus, if I wanted to ever get cash at an ATM, PS is practically non-exist.  So now PS is actually worse than most banks – same perks, no ATM’s.  I guess I’ll just go back to my old bank.  Even though I don’t like it – at least I can get cash when I need it and I can still get 1% there.

HOT OF THE PRESS Wednesday, March 7, 2012 ‘New York Times’ by Ron Lieber
Perk Street Does Away With Its 2 Percent Debit Card Rebate
http://bucks.blogs.nytimes.com/

Dave advertises “Up to 2% cash back with a debit card”… still true, could even advertise “Up to 5% cash back” and still be correct, since the “up to” caveat exists.  “More perks for more people” is also true, but less perks for me

I’ve been an on-again/off-again 2%er for the past year and have earned almost $900 in perks.  Even if I only received half of that amount this year, where else am I going to get $450 on my $5000 balance?  I found it difficult to spend the Mastercard, it wouldn’t work in some stores, so switched to Amazon gift cards and buy my gifts with them, or something boring like a fridge filter… but it’s money I didn’t have to budget!

I don’t think people were here for the 1%.  I think they were saving as hard as possible to be able to get to the 2% level, even if it would take a long time, or wouldn’t be consistant.  That’s why they’re so upset; the carrot is gone.  They’re only looking at what they can’t have instead of what they can.  And unfortunately the announcement comes in the wake of all the other banks announcing extra fees.

But in reality, we knew this was too good to be true, especially with the new legislation coming in limited the amount banks can get in fees from the retailer.  It’s not a given, people, it’s a perk.  It’s like when your employer drops your 401k match or doesn’t give a bonus.  It’s a benefit that exists as long as they can afford to do it, and when they can’t it’s gone.  Be grateful for what you received and let it go.

I’m not sure I’ll keep $5k in the account anymore.  It made me a bit uncomfortable to keep that much in a checking account anyway.  But I don’t see any reason to move checking accounts, or start using a credit card again.  The perks are better than I’ve received elsewhere and the customer service is awesome.

Well, since I will now get 2% back at BestBuy and Amazon, instead of 1%,  that means I’ll be getting more back…

never mind I see it under the details

 
 
These new changes are DISGRACEFUL and personally INSULTING!  I was not thrilled about having to redeem rewards through the MasterCard gift card, but I understood the rationale for doing so. 
 
These new changes are ridiculous and I will be ACTIVELY looking for another account; I see a great deal of potentials already.  One of the INFURIATING things is the spin from PerkStreet to make it look as though this is a new “benefit” and in the best interest of the customer. 
 
What does this really mean?
 
1.        If you maintain over $5k in the account, like I do, you will NO LONGER get the blanket 2%.
2.       Now there is a LIMITED amount of retailers for which you can even receive the 2% on.
3.       You are limited to only a max of $5k spending at the 2% level.
 
I personally used the MasterCard gift card redemption option, which is now GONE.  (They have added more retail gift cards, which severely limit you, force you to shop at those establishments, typically entice you to spend additional money that you wouldn’t have normally spent and people tend to leave a small balance on each card that when added up is quite substantial).  They have replaced it with an “account credit,” which adds up like this:
 
1.       You only get $20 for every $22 of rewards.  This is OVER 9% (NINE PERCENT) of your rewards that they have decided to just keep from you.
2.       This means, that if you are not purchasing from one of THEIR retailers, you are getting 1% return.  THEN, they take 9.09% of your 1%.
3.       FOR EXAMPLE, you spend $100 and earn $1.  They then take 9.09% of your dollar and only leave you with barely 90 cents.
4.       This essentially drops their 1% “reward” to a 0.9% “reward,” if you can call it that.
 
The $2500/$2500 online/in-store purchase limit is the final nail in the coffin.  I could not believe that when I read it.  Limiting the amount that you can even receive at the 2% level to $5000 IN ADDITION to limited the places you can spend at, is preposterous. 
 
These executives must have sat at the table and thought, “Yeah, I think people are STUPID enough to buy all this.”  It’s like someone SPITTING IN YOUR FACE and telling you that it’s a ‘benefit’ and thinking you’re too DUMB to know the difference.
 
 It is unfortunate that it is seen by the PerkStreet executives as revenue vs. cost while the demand function will never surpass the motivation for INCREASED PROFITS.
 
I’m sure in the future there will be a company that will offer a 2% rewards program with the direct account credit option and possibly even a high balance high percentage savings and/or investment account to compliment the checking.  I guess I will have to do some digging and find out what’s currently out there and go with the best option.  It too bad because I thought PerkStreet was that option.  Who knows, maybe PerkStreet will even come around. 
 
If this does take effect, I will make it my DUTY to get accounts and post negative reviews for this company as far and wide as I am able.  If I have to go through the HUGE PAIN of switching my bank (i.e., direct deposits, auto payments, etc.), then while I’m at it, I will warn anyone who will listen.
 
Mark
 

Glad to hear it, Michael! You and the majority of our other customers, too, based on our data about where our customers spend the most. Thanks for weighing in. 

-Kyle

That’s a bit like “I feel bad that we only give out one $100 employee of the month award for the person who tried the hardest, so we’re going to give out $10 to everyone instead.”  Suddenly no-one has the incentive to try any more.

Kyle,

Since the MasterCard was too costly to continue and now you credit our account minus the 2 perks, why couldn’t you have kept the 2% and credit our accounts?  Then there would not be that expensive cost!  You’d continue to raise the bar by asking Perkstreeters to reach the 5K, make DR proud and echo “the bad taste” Dan had when he started PS. 

To say that people can’t reach that goal (like buying a $350 ring keeping you under 5K-poor planning.  Not an attack, just listen how silly that sounds) is foolish and a behavior issue.  There is power in your income – Budgets set you free and illuminate the cash flow. 

Certainly PS would like to have this scenario back and approached from another angle.  I’m interested in the survey.  Was it open ended or closed.   

Whats the round number of those 10% of PS that had >5K..  besides me? 

John here from TheChristianDollar.com. I’ve stated my opinion here: http://www.thechristiandollar.com/perkstreet-changes-of-2012/

Boooooooooooooooooooooo!

 Hope you are the same Mike…Bravo, again.

So well said, your post brought tears to my eyes…I feel a small potato, an insignificant consumer that is so helpless in front of all these big corporations. 

No matter how they spin it, it’s not about “leveling the field” as Kyle would like to say it (Dear Kyle, you keep saying that the 1% rebate is still available for all.  The new program will help non-$5K people earn more rebates by giving them.. ONLY A FEW more choices to earn 2%?  Please, essentially you (Perks) are taking AWAY the 1% normally get accumulated by the 2% spender (the 10% of your customers), and distribute perhaps (perhaps) 20% of that 1% to the non-$5k people and calling that better equality–effectively creating a more level field because those 10% customers are earning so much less that they are at the same level as the non$5k people).

I guess the most upsetting part is the spinning!!  Thus, Mark’s clear analysis of the new “scheme” is so refreshing to see.  MANY MANY people who switched to Perks because of its rebate program really need to understand this!

P.S.  Unfortunately for you Kyle, you have to face this heat as the Blog Editor and Marketer of Perk Street.  Yet, no matter what, you earn a salary (perhaps bonus too), it is easy for you to tout the “I-care-but-you-are-free-to-make-your-choice” slogan–because the reduction in rebates to each individual customer is NOT coming out of your pocket.

However, the frustration of your customers is real because the money IS A REDUCTION to their account/pocket.  Please understand us as well.

 Thanks N.

I have posted several posts but I forgot how WE can proactively suggest alternatives as well (like what you have done, and good suggestions to start exploring).

One thing that concerns me, however, in one of Kyle’s post earlier, he said, “Moreover, PerkStreet is not planning to make any more “big changes”
anytime in the foreseeable future. Once we realized a few things should
be changed, we went through everything to make sure we wouldn’t have to
further disrupt your experience by changing something else soon after…” he is essentially saying your suggestions will probably not be considered any time soon…sad. 

another disappointed Perkstreet user.  I just talked my son into switching and now you cancel the 2%.  I specifically asked customer service about the 2% when I signed up last fall, didn’t want a bait and switch and that’s exactly what I got.  I hope Dave Ramsey will reconsider promoting Perkstreet.

 What’s a guy got to do in order to test for Perkstreet???

TD Bank COnvenient Checking and my wallet of rewards from 5% to 1.25% sound much better.

You’d be much happier with your local bank’s checking account, or, an Ally Bank checking account, or even one of those big BankofAmerica, Chase, SunTrust, PNC, TDBank, or an online savings account that earns now ~0.85%…and to use responsibly credit cards that earn you much better (cashback) at the same rate, sometimes higher, sometimes a tad lower than Perkstreet (without maintaining a $5k balance) and as long as you pay-in-full each month,.

Thanks much for commenting and asking about this new marketing. First of all I’m sorry if we’ve upset you with the changes, and I understand your frustration at the thought of earning less with PerkStreet. 

Unlike many other industries, in banking, in order to comply with regulations, companies like ours MUST be able to substantiate our marketing claims. You can find this substantiation in the footer of this blog post, as well as the other pages on our site. 

The $1,000 marketing claim you referenced is based on actual PerkStreet customers’ total perks earned from December 2010 to December 2011, and those customers earned that much money without ever touching our old 2% for $5K balance escalator. They earned over $1,000 at the 1% cash back rate. 

The phrase “up to 2% cash back on everything I buy,” is accurate because of the words “up to.” All our customers will actually be earning up to 5% cash back on everything they buy using non-PIN purchases after April 4th.

Until the announcement on Monday, we often marketed UNLIMITED 2% cash back, but after we found out so few customers were actually taking advantage of that, we felt this was misleading. It’s a big reason why we made the changes we did. 

Hopefully this helps you understand our new marketing and feel a little bit better about the way we conduct our business. Nothing has changed about our devotion to our customers nor to paying great cash back for spending responsibly on debit. Thanks again for commenting. Please let me know if you have other questions. 

-Kyle

Kyle, thanks for the explanation on the advertising.  However, if a Chase card advertised with a big 5% Cash Back logo, when only a tiny of fraction of the cardmembers’ spend could earn 5% cash back, we’d say that was disingenuous.  Perkstreet is essentially a 1% cash back card with a few exceptions.  I think your marketing department should reconsider those ads.

When I saw the 2% cash back ad on the sunkcostsareirrelevant blog yesterday, I laughed.  

You maybe “legally” ok to advertise that way, but it doesn’t make it right. Pretty shady if you ask me. 

 The decision to change the rewards structure was both “heavily debated” and “unanimous”? That sounds highly unlikely. Customers don’t want marketing BS.

If you just said, “Yeah, we weren’t as profitable as we needed to be” people would respect it more. People know companies need to make a profit. They resent the implication that the decrease was for the customer’s benefit rather than the company’s. The Share-a-perk (or whatever) is a consolation prize. That is totally fine, just call it what it is.

It is fine to make decisions that increase profitability. After all, we wouldn’t get any rewards from PS if they went out of business. But you insult the intelligence of your customers when you try to spin it rather than just being honest. So few companies are honest, it would have bought you a lot of brownie points to be one of them. Reducing cash back to (effectively) 0.9% puts you right on par with other companies. Honesty is refreshing, and could have set you apart from other banks.

 So, here’s my problem. In and of itself, I’m ok with the reduction from 2% to 0.9%. I’m not happy about it, but it is right on par with what other banks offer for credit card rewards.

However, since this is a debit card, there are other costs for me. I have to keep a certain amount of cash in the account earning nothing to avoid overdraft fees. Most other banks offer some sort of overdraft protection account. (I want to say *all* banks offer this, since I’ve had accounts with more than a dozen and they all offered it, but benefit of the doubt, let’s just say most.)

Since PS does not offer this, and they are increasing fees to overdraw, and at the same time reducing the incentive to keep a cash cushion in the account, I can’t help but get the feeling you WANT me to overdraw my account. I am usually not opposed to overdraft fees, because I give the banks the benefit of the doubt that overdrafts cost them money to process, and that the income they receive from them is really just to offset the costs. The idea that a bank would actively try to cause overdrafts to profit off the fees is unpalatable at best, if not outright immoral.

I would like to be able to trust PS that this is not what they are trying to do. I really want to have that trust. But, slimy PR BS strips away that trust.

Exactly. The same people who can’t scrap together 5k are spending 100,000 on the perkstreet debit card. OK, Kyle.

Where are all of the 90%ers that should be so pleased with these changes?  Where are their comments? 

This is why this was as bad an idea as when Netflix divided itself into two entities. You are losing the only people who really back you – the 10%. The other 90% don’t care! They won’t tell friends; they won’t be your unpaid sales people; they won’t voice their opinions to help your company. But – we do!You’re cutting the wrong group. A smart CEO would come up with a creative solution, not piss people off with spin. 

For example, as others have already suggested, there could be various tiers 2k 5k 10k with corresponding rewards: 1%, 1.5%, 2%.
You should reach out to your base rather than amputate it.

I am not one to carry a $5000 balance in my account daily for this change to hurt me. The only complaint I can say is for the loss of the MasterCard reward. I understand the cost of such cards for the company but it might not always benefit people if they don’t.like thechoice of other gc companies. It would be nice and not as expensive to perkstreet if they still offered the MasterCard but only for high dollar reward like $250 or $500.

Kyle, if you didn’t feel right about billing it as an unlimited 2% cash back debit card, it would have been a lot easier to just call it an unlimited 1% cash back card and then offer customers with larger balances the ability to earn more.

Interestingly, Discovercard always gives 1% as well and they just recently increased their bonus to 5% of up to 1500.  I thought they might be doing this in response to perkstreet.

Great post, John! I am in full agreement with you and I encourage everyone to read it!

I agree with a lot of the concerns about the changes and the way they have been marketed. It’s also upsetting that I did not get an email about these changes and only learned about them through this blog. Are you sure that all the $5K customers have been notified?

I know what you are saying as I always was a 5k customer.  The thing you might need to consider is trust.  We know what the big banks offer and we’re all used to that.  We were all drawn to PS because they seemed different-none of the deception and drama.  Now, with the spin they’ve put on this, it really just feels the same.  I think what they’ve learned is that they really can’t be different.  I know everyone is raving about the blog and the ability to communicate with them about anything…but does that really change anything?  They’re really just saying we’d hate to see you go, but go ahead.  Maybe I’m just not their target market as all this social media stuff doesn’t move me in a way to continue to be deceived.

They fully expected people to be mad…and stay with them.  Even if I’m the only one that moves away, I have to do it. 

Well said Tye. Loud minority indeed and they do not speak for me. I will continue to support Perkstreet and I’m not going anywhere!

 That’s how you miss the point, Brian, by thinking in that manner.  I have no problem with people expressing their frustration and disappointment with the change.  It’s when your comments go from expressing frustration to being disrespectful and simply rude towards the employees of PerkStreet, including the CEO – that’s where I draw the line and you lose whatever credibility that you have.  I feel your pain when you express your pain.  In my book, you stand alone and lose my compassion when you make personal attacks, especially about people you neither know personally nor have even met.  That’s the point where I think you just need to keep quiet and move on.

And to be clear, I am one of the 90%ers, and still I am disappointed with the change.  But you won’t see me write one bad word towards the employees and/or CEO of PerkStreet, because I have never met any one of them, so I don’t know them.  And most of all, they are working for a company that is focused on doing something good for me.  That certainly can’t be said about the other banks out there.  But even then, I won’t speak poorly about those employees at those banks either.  Maybe their CEOs, as we see them floating away on their golden parachutes, which are comprised of my fees and the “perks” they could be giving me but choose to keep for themselves.

So Brian, go ahead, express yourself just like the rest of us, but just be respectful in doing so.  You lose standing and credibility in my eyes and in the eyes of the other readers when you (and others here) start being rude and disrespectful towards people you don’t even know.

Technically, Discovercard’ 5% cash back bonus for upto $1500 in the quarter categories is in response to Chase Freedom and Citibank Dividend credit cards. They’re still much better, in combination with online savings accounts and/or interest checking accounts, then Perkstreet’s.

I’m VERY confused! My account has about 800 a month in it that I use for fuel and food, and I earn AT LEAST 50 a year, so how can those that are using AT LEAST 1500 or more a month only going to earn 50/50?
PLUS, since I use my card as credit, I save on overdraft fees which is at least 25 per occurance! (I’ve had this happen when I forgot a recurring charge was coming out on a certain date).
Am I happy about the new Perks offered? Do I shop at the stores that are offered? The answer to both is no, BUT, this accout is A LOT better than others offered and will fill a need to those of us who count the pennies because they, in turn, add up to dollars!
Now, I need to know where I can find the information on the savings account…

I’m VERY confused! My account has about 800 a month in it that I use for fuel and food, and I earn AT LEAST 50 a year, so how can those that are using AT LEAST 1500 or more a month only going to earn 50/50?
PLUS, since I use my card as credit, I save on overdraft fees which is at least 25 per occurance! (I’ve had this happen when I forgot a recurring charge was coming out on a certain date).
Am I happy about the new Perks offered? Do I shop at the stores that are offered? The answer to both is no, BUT, this accout is A LOT better than others offered and will fill a need to those of us who count the pennies because they, in turn, add up to dollars!
Now, I need to know where I can find the information on the savings account…

 Where’s the fine print? I have an account like that with Rockland Trust, limited to $300/year. It’s a good companion to PerkStreet because I get someting back no matter which card I use, but it doesn’t pay me more….

I looked around for details. Where did you find that document? I’m still in the dark about the dime a time. says nothing about it here? This information is also different from the other personal checking info on the site. It says $35 overdraft but the website said $29 overdraft, so I don’t know what to think. Maybe its just personal preference. Perkstreet doesn’t confuse m at all but seems to confuse others. this thing confuses me but seems to make sense for you. Different strokes?

The unlimited 2% rewards was the sole reason I switched to Perkstreet as my primary checking account as I typically carry a balance much larger than 5000. With this gone, I will close my account and switch back to BOA as my primary checking account. Luckily I did not close down my BOA checking account when I made the switch to Perkstreet last year. I will instead now use the 1%/2%/3% rewards BOA credit card as others have indicated. I pay all of my credit cards in full every month, so the credit card vs debit card debate is meaningless to me.

The only painful part would be switching back all of my direct deposits/automatic bill payments, etc. But the pain will be lessened by all of the hoops I have to jump through for non-pin debit purchases at the register.

Bye bye perkstreet! I have to admit it was good while it lasted.

Perk Street you should really reconsider this decision. I will be leaving Perk Street should the decision not be reversed soon. Reading the blog, I’m not the only one…

I was going to join Perk Street but your new policy changed my mind. Thanks for changing it when you did. I will try my local credit union that offers the same type of rewards that your new policy offers. Wonder what Dave has to say…..

Get a hold of yourself, Tye. Where do you see “bashing” and “personal attacks” ? 

Perk Street, lead by its CEO, has pulled a bait and switch and then put spin on it. They lied. Talk about treating people with no respect.I’ve spent many hours switching banks, and now I have to do it all over again. Direct deposits, bill pays to countless companies. . . It takes a long time, so yes, it bugs me that they would do such a thing, but no, I’m no whining. They do can as they wish. I just want to tell them how wrong-headed they are before I go.As for the rest of you comments – are you off of your meds again?

 Brian, if you read through some of the comments people are making here are bashing PerkStreet employees and making some unfounded personal attacks as well – not you, but others.  I don’t think that’s right.

I’m as clear-headed as ever, Brian, and more so since I have been with PerkStreet.  That’s why I could never think of going back to some regular bank.  I’ve kept my credit union account, but the rest I left behind once I joined PerkStreet, and this change, although disappointing, will certainly not cause me to go back to the mess where I came from.  Sometimes we let the heat of the moment cloud our thinking, and we sometimes make irrational changes that we really don’t need to make.  To me, leaving PerkStreet, for this, makes very little sense.

I love Dave Ramsey. I think what he teaches is awesome and needed, but it is for people who can’t manage money any other way. I have a credit card that I get between 1% and 11% back each month on the things I buy. I use it for everything and pay the complete balance every month. The ‘evil’ credit card doesn’t cost me a dime, but rewards me with hundreds of dollars each year. 

Well, I took the advice of another poster here on the blog. I signed up for the American Express Preferred Card that gives 6 percent back on groceries, 3 percent back on gas and 1 percent everywhere else. I think that with the 2 percent cash back rewards gone for those of us who had 5k balance I would rather go back to my local bank. Like I said in my earlier posts I am disappointed that I finally saved up the 5k balance and had the 2 percent rewards yanked away from me. I thought I would stay with Perkstreet, but after thinking it over, I am annoyed enough to stop recommending Perkstreet and I will switch back to my local big bank. I have found Perkstreet friendly and I like the website, however….. I wish Perkstreet would have listened to us on the blog. It was a huge pain to switch to Perkstreet, but the opportunity to earn 2 percent cash back lured me in. Now it will be a huge pain to switch back to my local bank, but I have decided to do it. They should have grandfathered us in who had reached the 5k balance. It took me a while to do it. I really feel ripped off. Like I said in my earlier post, I wish I didn’t feel the way I do.

I am under $5k and I too am very disappointed. I heard about Perkstreet through Dave Ramsey. I thought wow this will be great, cut up the credit cards and go for $5,000. I think you better reconsider this change. It looks like Netflix all over again. You need to tier your rewards to make customers have goals. 1% up to $5k, 1.5% over $5k, 2% over $7k, and so on. This was the beauty of your bank. I don’t want you to even respond with that shit about Perkstreet doing it for the 90% because it is BS. I am a 90% and I say it is BS. I may or may not keep the account. I will certainly be looking for greener pastures. Sad day.

Tye, 
There are a lot of people who don’t have the self control to pay off a credit card balance every month.  For people like that (or, I suppose, people too stupid to realize carrying a credit card balance at 22% is a bad idea) Dave Ramsey’s approach is a great one.  We’ve graduated FPU and, trust me, I see the merits.  But to pretend that there are no consumers out there who can responsibly handle credit cards and benefit from superior rewards programs is “ridiculous” — naive, even.  In 2012, my wife and I have already earned over $2000 worth of rewards in free airfare and cash back, just for signing up to Chase’s Southwest card (2 free flights for each card we signed up for…canceled one of the cards already), Chase’s Freedom card ($300 in cash back for signing up), and American Express’ Blue Cash card ($150 for signing up).  That’s just for signing up — the rewards for actually using these cards is also greater than a flat 1% w/some rare 2% opportunities you get with Perkstreet. There are similar opportunities for sign up bonuses with other cards as well, which we’ll be taking advantage of regularly.Of course, we never carry a balance on our cards.  And for the Dave Ramsey disciples, we’re on baby step 6 and the house will be paid off in 21 months.  So there doesn’t need to be any line in the sand here — you can take the best of Dave Ramsey and still, gasp, have a credit card or two in your wallet.Now, you may not be organized enough to pay your bills on time, may not track your spending diligently, or can’t remember to cancel cards prior to any annual fee.  And if that’s the case I agree with Dave Ramsey and you should steer clear of credit cards entirely.  But for people who are able to exercise self control and manage their spending, you can earn more with credit card rewards in 3 months than you could earn with Perkstreet in several years.Food for thought.

I’m seeing a lot unhappy customers with the change… Where’s 90% that should be so thrilled? There should be an overwhelming majority of your clients defending your new changes if it was indeed more beneficial to the masses. At the end of the day, you should have just been straightforward with your customers saying you could not continue to be profitable if you kept the 2% cash back model for everyone w/ a 5K balance. Instead of trying to spin it to say it’s something “better” for everyone… It’s sooo important for you to treat you customers in a way that they don’t feel like you are trying to trick them. And your replies where you continue to push the 1% cash back is NOT helping your cause, because you’re deflecting from the REAl issue ar hand. Just admit the changes sucks, but it was necessary and move on.

And honestly I think you should go back and honor the 2% cash back with the 10% of your loyal customers that held a $5K balance. It’s the right thing to do. Sucks for me because I’m not a customer yet. Did you consider raising the minimum balance from 5K to 10K+?

 Look at https://www.kasasa.com or just google kasasa. I get 3% back local now. Sorry to see Perkstreet go this way. How can a brick and mortar beat you? You have really zero infrastructure. 

I just see it as being punished for being responsible with our money.

Here we keep $10k in our Perkstreet checking account and not only do they reduce us from 2% down to 1%, but also CHARGING a 10% fee to get the “cash back”. Charging 2 perks for every 20 deposited just rubs me the wrong way.

I see I’m in the top 10% of account t balances, which really shocked me on how poorly others manager their finances, with that being said you think this new bank would want to keep their top 10% people happy and keep that cash in there bank.

Here is my 2 cents, on your 2% cutback…
On your cash back redemption if a customer saves up $300 in perks, then reward them by waving that fee. Since Perkstreet has done away with the no fee MasterCard, I feel ths is more then fair.

You’re not wealthy enough to have $5,000 in your account but you are wealthy enough to spend the $60,000 required to earn $600 in perks???

 Those high expenses are exactly why I can’t save enough. Self employment has high costs.

I’m moving to Capitol One Cash Rewards – effectively %1.5 CASH back on EVERYTHING with NO LIMITS!!!

Hey Anna, Just wanted to say we’re sorry to see you go if you have in fact decided to bank elsewhere. Having said that, however, we want what’s best for you, even it it’s not us. Hopefully you’re accomplishing your financial goals and getting your best deal possible -Kyle

Sorry Howdyhansen. I’m sure we let you down with this. Hopefully you are in a good place financially today. I know it’s been a few months. -Kyle