Warning about Fidelity 2% cashback card

TL;DR: The Fidelity 2% Visa is serviced by Elan Financial Services, which has a reputation for siding with merchants in disputes and offers almost zero card benefits beyond the cash back. Use a real card if you want actual protection.

Long version: I've had the Fidelity Rewards Visa for over a year. It made sense on paper since I already had my brokerage, retirement, and cash management accounts at Fidelity, and the 2% flat cash back seemed like a good financial decision.

What I didn't realize is that Elan Financial Services, which is a U.S. Bank subsidiary, is the actual issuer of the card. Fidelity just licenses the brand. Every dispute, fraud claim, and customer service call goes to Elan, and Fidelity has no say over their decisions.

To explain my issue further, I had a $200 dispute with an eBay seller who sold me a "new" kitchen faucet that didn't work. Counting the plumber install and removal, I was out around $600. Elan made me jump through hoops documenting everything (vendor communications, photos, plumber invoices) – and I had to do this twice for some reason – and then denied the dispute because I was past the 60-day filing window.

I get it, rules are rules. But I've had Chase, Capital One, and Amex resolve disputes in my favor well outside their official windows when the situation warranted it. That's what good card servicing actually looks like. If the amount was small, sometimes the card issuer would often just credit me the charge.

I was flummoxed by this experience and looked further into Elan, only to find that it is consistently rated near the bottom for dispute handling and customer service. Reviews across Trustpilot, WalletHub, and Consumer Reports show the same patterns of long hold times, dragged-out disputes, and fraud claims requiring excessive proof. The Fidelity Visa also has minimal cardholder benefits beyond the 2%, with no meaningful travel insurance, no purchase protection worth using, and no extended warranty. Fidelity can't override Elan's decisions, so escalating to Fidelity isn't going to help either. I tried the "karen approach" and threatened to yank my accounts from Fidelity and they didn't give two shits.

Being a little pissed off about all this, I decided to cancel the card. But before I let my emotions make me do something I might later regret I calmed down and did the math. At my typical $150K annual spend, that's $1,500 back. Sure, it's a decent chunk of change, but my Chase Sapphire and Cap One Venture X points get me business class flights and Hyatt stays that are worth far more than $3000 in cash for the same spend.

For example, earning a point per dollar would net me 150K points. An international round-trip business class flight from the West Coast runs about 150K-200K points for what would otherwise be a $5-10K airfare. Hyatt rooms can start at 8K points for cheaper properties and go up from there (I typically draw the line at 15K points, since I'd rather save the higher redemptions for an international business class flight) for what would normally be $200-600 per night. Plus, Chase and Cap One have actual travel protections and dispute backing.

I suppose if you never dispute charges, don't travel, and just want simple cash back, the Fidelity Visa works fine. If you want a card that actually has your back when something goes wrong, look elsewhere. Caveat emptor.

EDIT: corrected math