Courtesy Bank of America

Holders of Charles Schwab’s Invest First Visa credit card, which paid 2 percent cash back on all purchases, are learning this month about their replacement options for the card, which, sadly, was discontinued by Schwab. Bucks has written previously about the demise of the card, which was one of the best deals out there in the world of rewards plastic.

Schwab stopped sponsoring the cards last year, so they actually are not Schwab cards anymore, a Schwab spokeswoman said. But Schwab’s card partner — FIA Card Services, a unit of Bank of America — had continued to provide the 2 percent cash-back rewards, and had told holders they would be notified of any further changes.

Now, holders are being notified that the cards will be replaced with Bank of America-branded cards with different rewards, according to a report this week by the Web site NerdWallet. The perks aren’t bad, but they aren’t as good as the rewards offered by the Invest First card.

Bank of America is starting to notify customers who currently have the 2 percent cash rewards card that they will be offered either the BankAmericard Privileges card, or the BankAmericard Cash Rewards card, a bank spokeswoman, Betty Riess, confirmed. Customers have until mid- to late October to choose, she said.

The  BankAmericard Cash Rewards card offers 3 percent back on gas, 2 percent on groceries and 1 percent on everything else, plus an extra 10 percent bonus if the rewards are redeemed and put into a Bank of America account. The card has no annual fee and zero percent interest for the first 12 months. You also get a $50 credit if you charge at least $100 in the first 60 days. On the downside, it carries a 3 percent fee for transactions in foreign currencies, making it a poor choice for foreign travel.

The Privileges card provides 1 point for every dollar in purchases, plus three times the points in categories that rotate quarterly.  Also, if customers opt for cash rewards under the Privileges program and deposit the cash  into a Bank of America or Merrill Lynch account, they get a 50 percent bonus. The card has a $75 annual fee, but it is waived for the first year.

If neither of those cards is appealing, NerdWallet suggests some alternatives with decent rewards. First is the Capital One Venture rewards card. It has an annual fee of $59, but that’s waived for the first year. Next, NerdWallet cites Chase Freedom Visa, which offers a $200 sign-up bonus, as well as 5 percent cash back on bonus categories — like groceries and department store purchases — that rotate each quarter.

Also, my colleague Ron Lieber recently wrote about the new Capital One Cash card that offers 1.5 percent cash back — although it makes you wait a bit to collect some of the cash.

If you’re an Invest First Visa cardholder, have you been notified of your new card choices? What will you choose?

Article source: http://feeds.nytimes.com/click.phdo?i=5b5c621f104ce0138f6b7553583ccc0d