Hacker News Reader

Comment by imbusy111 | Hacker News Reader

But why?

"For purchases and balance transfers, the variable APR is 15.99%, 21.74% or 24.74% depending upon our review of your application and your credit history at account opening. The variable APR for cash advances is 25.99%."

That's why.

My guess (and there's probably a whole lot more to the story)... Uber pays lower interchange fees and gets a cash commission up-front per registered cardmember.

In addition to what others have added, the cash-back is only spendable through the Uber app.

"Points can be redeemed for Uber credits directly in the Uber app. Points can also be redeemed for cash back or gift cards. All redemptions are at a 1% value."

"Redemptions for Uber credits start at 500 points for $5 and all other redemptions start at 2,500 points for $25."

"Bank deposits will be transferred to your checking or savings account within three to four (3-4) business days and there is a $500 daily limit for cash back rewards deposited into U.S. checking or savings accounts. Statement credits will be posted to your account within one to two (1-2) business days."

Thanks, I failed at reading comprehension there. So it's not only spendable there, but it is a good incentive.

I'm making the assumption that this gives Uber a large volume of data on your spending habits. Of particular interest are the cash back returns on areas where Uber has a particular interest.

Reply on news.ycombinator.com