echeck verse credit card payment.

[WAVTAM]

I ask this question years ago and failed to keep copy. 

I received a reply that did the math for the benefits and that the points or cash back on the credit card was the best option. Can someone show me that formula again.

[CurlerRob]

7 minutes ago, WAVTAM said:

I ask this question years ago and failed to keep copy. 

I received a reply that did the math for the benefits and that the points or cash back on the credit card was the best option. Can someone show me that formula again.

 

There's no single formula that will cover this - it's a function of how many points your credit card gives you per dollar and what the redemption value is. As well, items like credit card protection would figure in. However, in just looking at the dollar value, this may help:

 

Viking echeck provides a discount of 3.3%. That's the break-even point.

 

If your CC provides a cash back rate that is more than 3.3%, it would be preferable to use it. I've never seen cash back anywhere near that level, but it may be out there.

 

Regarding points, you need to calculate what the equivalent cash value of your points is. I do this by looking at the retail cost of something I want to buy (like airfare), then divide it by the number of points needed for the purchase. That will give you a cents / point number. Multiply by the ratio of points accumulated per dollar spend (example 1:1 or 2:1). If it's over 3.3, you win!

 

FWIW, most airline points redemptions I see work out to be in the 1.5 - 2.4 cents per point range - below the echeck return. Hope that helps. 🍺🥌

[bison2013]

the value for CC comes when something needs to be cancelled or refunded to original payment.  @CurlerRob do you have any experience with how long it would take Viking to refund cancelled excursions paid via e-check/ACH?

[basenji56]

Yes, travel protection from credit card needs to be favored in.

 

As well as protection from provider bankruptcy 

 

 

 

[dd57]

One other thing to understand is whether your CC has any limits for repayments.  For example my Chase card limits repayment for provider bankruptcy to the smaller of amount paid or $5000.  So I only charge $5000 on that card when paying Viking and pay the remainder another way.  This info was buried in the small print.

[deec]

1 hour ago, basenji56 said:

Yes, travel protection from credit card needs to be favored in.

 

As well as protection from provider bankruptcy 

 

 

 

the provider bankruptcy is huge...just ask so many Vantage customers!  Vantage offered great incentive for cash payment and many are out of luck!

[basenji56]

2 minutes ago, deec said:

the provider bankruptcy is huge...just ask so many Vantage customers!  Vantage offered great incentive for cash payment and many are out of luck!

Crystal left many holding the bag too.  I assume Viking is safe but I have not studied its books.  Using a credit card adds significant protection.

 

[Selion]

2 hours ago, WAVTAM said:

I ask this question years ago and failed to keep copy. 

I received a reply that did the math for the benefits and that the points or cash back on the credit card was the best option. Can someone show me that formula again.

As @CurlerRob said, CC point valuations vary greatly.  Would need to know which card you are planning on using to work out the math.

[WAVTAM]

49 minutes ago, Selion said:

As @CurlerRob said, CC point valuations vary greatly.  Would need to know which card you are planning on using to work out the math.

Chase Reserve. Your face looks familiar. I think you where the gentleman that done all the calculations. Please repeat and I will copy.

[Selion]

The formula to calculate your potential value from your card point earnings:

Card Earnings Multiplier x Redemption Rate in $/point = Potential Value

 

@CurlerRob mentioned this formula in his post.  While the formula can be plugged into any points earning cards, the variables are the earnings multiplier and redemption rate.  Especially the redemption rate, since it varies greatly.  For potential valuations, I tend to use the minimum redemption rate I can almost certainly receive with the card I'd be using.  This will establish a "floor" of the potential value for use in other comparisons.

 

For CSR, you earn 3 points per $1 on travel categories.  The multiplier is 3.  With CSR, you have access to Chase Travel portal where you can redeem points at $0.015/point.  Using those numbers, you'll have earned $0.045 (3 x $0.015) per $1 spent, or 4.5% effective rebate.  A $10k travel payment will net you $450 in future travel credits if redeemed at Chase Travel portal.  More if you redeem elsewhere through Chase transfer partners (I've redeemed for Hyatt stays at close to $0.08/pt).

 

Another way of doing the same math by using actual figures instead of theory crafting...

$10k travel payment on CSR will give you 30k Chase UR points.

Redeeming 30k UR points in Chase Travel will give you $450 credit at time of booking ($0.015/point).

$450 back per $10k = 4.5% = 3 x 0.015

 

Now I found a great redemption at Hyatt, where the room was $800/nt but the point value for 1 night was only 10k ($0.08/point).  I can transfer my 30k UR points to Hyatt and book 3 nights and save $2400.

$2400 saved per $10k = 24% = 3 x 0.08

 

Keep in mind with points the savings are almost always in the future, and that carries the risk of point devaluation (ask any UA MileagePlus members this year).  Best to "earn and burn" the points whenever possible to maximize your point values.

 

Edit: Since this is CC, I should mention this.  Virgin Voyages had a point promo earlier this summer: 80k points for any cruise in the Mediterranean in a balcony room, up to 7 nights.  IIRC they costed at least $3000 per couple.  $3000 @ 80k points = $0.0375/point.  80k UR points will take $26,700 in travel & dining spend on CSR.  That's basically a 30-day Viking cruise.  Buy One Get One.  LOL!

Edited August 21, 2023 by Selion

[CurlerRob]

4 hours ago, bison2013 said:

the value for CC comes when something needs to be cancelled or refunded to original payment.  @CurlerRob do you have any experience with how long it would take Viking to refund cancelled excursions paid via e-check/ACH?

 

I have no personal experience, but I recall reading posts from others that stated the refund time was not different between ACH and CC payments. As always, YMMV! 🍺🥌

[MamaFej]

If you and your travel companion each have a card that includes travel insurance (such as the CSR) you can split the payment between those two cards to increase your protection. 

[Clay Clayton]

Just be sure to read the fine print regarding the maximum amount covered. I have a CSR that we typically use but the maximum amount covered doesn't work for longer more expensive cruises.

[Selion]

10 minutes ago, Clay Clayton said:

Just be sure to read the fine print regarding the maximum amount covered. I have a CSR that we typically use but the maximum amount covered doesn't work for longer more expensive cruises.

Yeah, definitely not for a WC!

 

From Chase: "$10,000 per person and $20,000 per trip for your pre-paid, non-refundable travel expenses"

 

Go to UR portal, in the box that shows your UR balance click on Card Benefits.

[Clay Clayton]

7 minutes ago, Selion said:

Yeah, definitely not for a WC!

 

From Chase: "$10,000 per person and $20,000 per trip for your pre-paid, non-refundable travel expenses"

 

Go to UR portal, in the box that shows your UR balance click on Card Benefits.

Or even just a longer cruise. I charged our stateroom and DMIL's on my card for a shorter cruise and had to calculate if it was going to cover it if we needed it. 

[Ray4Fun]

Simple,, Before Crystal Cruise line went belly up. One that we had Thousands involved, we would immediately use the cash if there was such an option. After that mess no longer. Our CC gave us back all lost cash. Lots of it. 

 

My opinion still is Viking with a 6 month out final payment we would use the cash option. I do not see drama with them. Not like several other major players. 

Just my opinion....

[MamaFej]

Of course, credit card insurance is just a part of protecting your travel "investment." We have a Venn Diagram of coverages, with significant overlap. 

 

Each person must calculate what works for them. It won't be the same for everyone, but it's still good to learn from others. That's why threads such as this can be so helpful. People may discover something relevant they never thought of previously. 

 

Thanks to the folks keeping this thread helpful and informative, without attacking anyone else's choices. 

 

-----

I've seen too much rudeness and nastiness online lately, including on CC, and I'm especially appreciative to folks who choose to interact kindly. 

[Babr]

44 minutes ago, Clay Clayton said:

Just be sure to read the fine print regarding the maximum amount covered. I have a CSR that we typically use but the maximum amount covered doesn't work for longer more expensive cruises.

And the fine print regarding pre-existing conditions. The exclusion extends to non-traveling family members so everyone’s medical history has to be clear for the 60 days prior to booking.

 

Also, it might be worth mentioning that the trip interruption provision reimburses the unused portion of your trip and change fees for the trip home. That’s all. If you have other expenses such as hotel or meals before you can fly home or if you have to buy a new more expensive ticket, you are not covered.

[DrKoob]

10 hours ago, basenji56 said:

Crystal left many holding the bag too.  I assume Viking is safe but I have not studied its books.  Using a credit card adds significant protection.

 

Viking is fairly safe but you can't look at their books because they are not a publicly traded company. Totally private. The three biggest investors are Tor's family, a big equity firm and the Canadian government pension plan. 

[basenji56]

12 hours ago, Ray4Fun said:

Simple,, Before Crystal Cruise line went belly up. One that we had Thousands involved, we would immediately use the cash if there was such an option. After that mess no longer. Our CC gave us back all lost cash. Lots of it. 

 

My opinion still is Viking with a 6 month out final payment we would use the cash option. I do not see drama with them. Not like several other major players. 

Just my opinion....

I get 3% back on my credit card so its a relatively easy decision to forgo the extra .3% in exchange for the extra travel benefits from the card.  If you don't get cash back on your card, it might be a different calculation.