Thread: Is US Airways credit card a ripoff?

WARNING: Before you apply for a US Airways credit card, there are a several things my review exposes that you should know about. Is it a ripoff or not? Well despite what some posters have alleged, technically it's not a ripoff - there is absolutely nothing illegal or illegitimate about this card. That being said, many cardholders still feel it's a sucker's deal...

So is the US Airways MasterCard any better in 2012?

For starters, you should know that a different bank (Barclays) acquired a majority ownership stake in the U.S. Airways Dividend Miles card program from Bank of America a couple years back.

When Credit Card Forum reported this news on the blog, an all-time record number of complaints from existing cardmembers were posted about high fees, unfair terms, and difficult mileage redemption.

But last year in 2011, that mass flood of complaints slowed to trickle, as it appears the new issuer finally got their act together [mostly]. But it’s still not peaches and cream and here’s why…

Premier World MasterCard? The rewards are anything but premier!
I’m not sure who thought up the name for the US Airways Premier World MasterCard, because I am having a hard time understanding what is so “premier” about the rewards program.

It gives 1 Dividend mile per dollar, with the exception purchases on the airline which earn double. Now this in and of itself isn’t bad. In fact, it’s pretty typical for an airline credit card. But what isn’t typical is how horrible the reward seat availability reportedly is…



A graph using that same data was published in the Wall Street Journal last year. The data came from the consulting firm IdeaWorks, who made 6,720 booking inquiries to check the reward seat availability on 24 frequent flyer programs. They checked travel dates spanning a 5 month window for 20 top routes on each airline.

Dividend miles = dead last finish!

This is a reason why many people skip paying the $89 annual fee for this card and instead, apply for a universal air travel card like the Chase Sapphire Preferred and its promotion for up to $625 worth of free airfare. I hear from plenty of US Airways aficionados going that route, since they can spend the Sapphire’s rewards on any airline (without restrictions).

It’s funny to see the advertisements for the US Airways MasterCard which tout the benefit of getting award flights at 20,000 miles, versus the typical 25,000. That perk doesn’t help much if the seat availability is so limited, right?

And the other benefits?
If it weren’t for such lousy redemption, the card does offer some fairly respectable benefits. There is priority boarding… unfortunately it’s not zone 1, but cardholders still get to board during zone 2. During check-in the first class line can be used. Then a Club pass (valid for a one-day visit) is given once per year. However probably the most noteworthy benefit would be the $99 companion ticket certificates – 2 are given per year, though black-out restrictions do apply with these.

What’s noticeably missing from the list – something that many people have voiced complaints about – is that there is no benefit for first-checked bags. As you know most of the major airlines these days give cardholders their first-checked bag for free. With the typical $25 charge each way per bag, that saves a couple $100 roundtrip. In my opinion, that’s one of the biggest reasons to get an airline-branded card so to see it missing from the Dividend Miles is a definitely a disappointment.

Barclays also has a more basic version of the US Airways MasterCard for a $49 fee. The rewards are the same but it doesn’t include the zone 2 boarding, first class check in, or the one-day Club pass. There is a companion ticket (x1) per year and it costs $149 if used. Its signup bonus is smaller too (last I checked it was 10k miles instead of the 20k with premier).

The rates and other fees?
Most credit cards have 3 or 4 interest rate tiers but there are only 2 with this:



As you see even the lowest tier listed on the application is still relatively high. It seems like there are an awful lot of people who get stuck in that 24.99% tier for no good reason. I see a lot of customer reviews/comments like this one:



Another possible expense you need to be aware of is that both of these credit cards do charge a 3% foreign transaction fee. During the last couple years a lot of the travel cards which are in similar price points ($59 to $95) have dropped this fee, but US Airways is still charging it.

But the biggest complaint of all might be…
…the customer service. As mentioned at the start, the number of complaints posted about their customer service is unbelievable. Now in defense of Barclays, at least the number being posted aren’t as high as in the past, but I don't recall a single response on the blog involving positive sentiment, which is very alarming.

Other ways to spend rewards on this airline?
First of all I would like to be very transparent and upfront with you that I do advertise the following cards, but the reason for that is because I truly believe they offer the best value... the evidence speaks for itself. There are hundreds of cards out there for advertising, but I only endorse the ones I like. These are 3 of my favorite for travel and you can spend their rewards on flights from any airline, including US Airways.

• Chase Sapphire Preferred – This one has the best bonus offer, a good rewards program, and there are no foreign transaction fees. The annual fee is $95 but it’s free for the first year.
• Capital One Venture – 2 miles per dollar, no foreign transaction fee, $59 annual fee is waived the first year.
• Citi ThankYou Premier – More expensive at $125 but it has a unique rewards system in that it gives 1 ThankYou point per mile flown (regardless of airline).

This review has been updated for Jan 2012

Starting Dec 1 2009, Barclays (USAir MasterCard) has started charging a 3% "currency conversion charge" on all charges made on the card outside of the USA EVEN THOUGH THE CHARGES ARE IN US-DOLLARS!

I live in Anguilla, and never have had these chargies levied by other credit card companies. I received an e-mail from the provider confirming this policy as follows:

"From: Juniper Customer Care [mailto:Correspondence@juniper.com]
Sent: Thursday, January 21, 2010 12:57 AM
To: johnnb@[EMAIL REMOVED BY MODERATOR].COM
Subject: RE:'Case=008-693-961' Other Account Related Inquiry

Dear John Bedford,

Thank you for contacting us regarding your US Airways MasterCard account. We do apologize for the inconvenience this may have caused you; however, we can certainly address your concern.

Please be advised that for foreign country transactions, we will assess a fee that is 3% of the US dollar amount on any charge made outside of the United States. This fee is in addition to the Foreign Currency Conversion Fee that is charged by MasterCard/Visa.

Please note that the information about this fee was presented in the original offer you received, and is also included in your Terms and Conditions

We appreciate your business and look forward to servicing your financial needs. If you have any other questions, please reply to this e-mail.

Sincerely,

Ryan Jay De Leon
E-mail Relationship Manager

I have requested a copy of the referenced "terms and conditions", which I was unable to find on the MasterCard website.

Have other members of your forum had the same experience? I would like to be able to continue using USAir, the most convenient carrier to this part of the world. Do any of your members have any suggestions for other credit cards that credit USAir dividend miles?

John Bedford

I had some issues with this card from the getgo. Miles weren't awarded, interest charged on 0% introductory offers,etc. Using their website customer service is a joke. Responses never address the issue at hand but instead merely restated policy as seen on the back of your statement. Calling them is an even bigger joke. Most times you end up with some giggling filipina teenager who can barely speak English and has absolutely no interest in helping. Managers are never around and they won't transfer you to an American operator. Most responses are like "We are doing the process" or "Your concern is forwarded to the next level" This kind of BS. Stay away from the us airways credit card at all costs. I've been fighting them for 6 months and they still won't answer even the most basic of questions.

I opened my U.S. Airways account in January and I am still waiting for the two $99 companion certificates that is a yearly benefit. It is August now. I was told they were mailed to me in January, then in May, then again in June and again in July. They won't give you the certificate codes over the phone or e-mail, they *have* to mail them to you. What good is the benefit if they won't let you use it/won't give it to you. Otherwise I have no problems with the credit card.