Chase; iStock; Samantha Lee/Business Insider
- Members of online communities of credit-card super users have been freaking out over the past year after hearing stories from some JPMorgan Chase cardholders that the bank shut down their credit-card accounts.
- Since the credit-card rewards arms race ramped up a couple of years ago following the Chase Sapphire Reserve launch, credit-card enthusiasts who make a hobby of accumulating points for free travel and other perks have swelled in numbers.
- Like card sharks in a casino, these customers tend to be very savvy, know all the rules and angles, and can eat away at a bank's credit-card profits.
- Chase has gained widespread attention for its lavish rewards program, but profitability in its card division has fallen as it spends billions on rising rewards costs.
- The shutdown cases are anecdotal, but they suggest that Chase may be taking a harder line with credit-card gamers who open too many accounts.
Two years ago this month, JPMorgan Chase unleashed an industry-rattling new product: the Sapphire Reserve, a premium travel reward credit card with an eye-popping 100,000-point sign-up offer and innovative travel perks.
Chase quickly amassed hordes of excited customers, despite forgoing traditional marketing and relying on word of mouth. It eclipsed its one-year sales target in the first two weeks, despite a hefty $450 annual fee. It temporarily ran out of the card's signature metal core.
See the rest of the story at Business Insider
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