Episode 49: Grand Reserve World Mastercard

I received an offer via email the other day for a wine-focused rewards credit card I've been monitoring for a while, the Grand Reserve World Mastercard.

They've temporarily bumped the welcome bonus on the card to 75,000 points (worth around $450 towards wine and accesories) so I reached out to Grand Reserve Founder and CEO Matthew Goldman for a chat on the podcast.

Besides the points & miles stuff we talk about here on Milenomics, I've written a wine blog since 2008. So it feels like this program is right in my wheelhouse.

Grand Reserve World Mastercard

• Heightened Welcome Offer: 75,000 points for spending $3,000 in 90 days [expires at midnight 1/27/2021, not an affiliate link]
• Standard Welcome Offer: 50,000 points for spending $3,000 in 90 days
• Annual Fee: $0 for the first year, then $149
• 5x at more than 400 wineries, wine clubs, and other Grand Reserve Partners
• 3x at any winery, wine club, wine or liquor store
• 3x at any restaurant or bar, take-out & delivery included
• 2x points per dollar everywhere else
• Points are worth about 0.6 cents each through their Rewards Catalog or when redeemed for wine

The card is issued by Utah-chartered Celtic Bank. They pull Experian. For what it's worth, I lobbed in an application this morning and was instantly approved.

0:30 Grand Reserve Overview

• Tell us about your background, the program, the credit card and the idea behind Grand Reserve
• What does it take to launch a credit card?

9:55 Psychology of Rewards

• Travel seems to have an irrationally strong appeal to [some] people
• Even if some would be better off with cash back the idea of rewards being “free” seems to absolve some people of the guilt associated with splurging on themselves
• Additionally we talk a lot about the “co-branded paradox” whereby people think “I like <brand>, I should get their co-branded credit card!”
• Are similar forces in play here? People like to splurge on wine but don’t want to feel guilty about it? So it has a similar draw as travel?

20:30 Point Valuation

• So many credit card rewards programs have points, and it’s hard to discern what they’re worth until after you’ve signed up for the card
• What considerations went into determining the value of rewards on the redemption side?
• What are points actually worth and how do redemptions work?

Thanks to Matthew for coming on the show.

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