Hey MoneyNerds, this week we cover some big changes at popular credit card loyalty programs, a new partnership that’s good news for Mastercard holders, and we take a look at a confusing scenario involving a negative credit card balance.

Let’s dive in.

Recession. The dreaded “R” word. It’s been in and out of the headlines for years now, it seems. Economists and banking big wigs are always sharing their “will it, won’t it” predictions. But what does that mean for regular folks? And is there really any way to prepare for a recession?

» Read more about how to spot a recession

Recessions disrupt financial stability. So the best way to prepare is to take steps to ensure your financial resilience, no matter what the economy throws at you.

Tl;dr: The money moves that help you withstand a recession are the same ones that can provide financial resilience no matter what the economy is doing.

Chexy began accepting Canadian-issued Mastercard credit cards on April 1, expanding beyond Visa and American Express. Mastercard can now be used for rent, taxes, utilities and tuition. For personal accounts, the fee remains 1.75%. The platform also added more flexible payment scheduling, support for up to five cards on one account and a downloadable activity dashboard.

The Mastercard expansion means more Canadians can turn large, dull expenses into rewards-earning purchases. (Some Mastercards may be especially useful for recurring bills or welcome-bonus spending.) But the Chexy’s 1.75% fee can quietly eat your rewards.

🤓 Nerdy Takeaway: Chexy is interesting for Mastercard holders, but not necessarily more valuable. Use it when the rewards rate or welcome bonus justifies the fee. Otherwise, you’re paying cash to manufacture points, and that math may not add up.

As of May 13, Scene+ members are earning fewer points on many Cineplex purchases. Cineplex and Scene+ have published notice that earn rates are changing for tickets, food and beverages, merchandise and gaming.

The earn rate on standard movie tickets, for example, is dropping to 3 Scene+ points per $1 from 5 points per $1.

Cineplex has long been one of the easiest, most visible ways to collect Scene+ points without trying very hard. When the casual earn rate slips, the program loses a little of its everyday charm. While some premium categories are getting higher earn rates, the average moviegoer will lose out.

🤓 Nerdy Takeaway: If Cineplex is where most of your Scene+ points come from, this change will make the program less rewarding. That puts even more pressure on the rest of the earn-and-redeem ecosystem to do the heavy lifting.

A member of r/CanadaFinance on Reddit recently found themselves in this position: a -$2,500 credit card balance (that’s negative $2,500, as in less than zero). They asked the sub if there was any way to transfer that money directly into their chequing account. The other Redditors were unsure, so we decided to look into it.

The most common reasons for overpayment are:

When this happens, the result is a negative balance. i.e. the credit card company technically owes you money. But how do you get your hands on it?

The safest and cheapest way to get your money back is to request a credit balance refund directly from your issuer.

Unfortunately, this will probably require a phone call. Tell your credit card company that you want a "credit balance refund." They should be able to transfer the funds directly to a linked chequing account or mail you a physical check. This usually takes 1 to 3 weeks and carries no fees.

If your credit card and chequing account are with the same institution, you may be able to log into your online account and transfer the funds immediately without triggering cash advance fees.

Whatever you do, don’t try to withdraw the negative balance from an ATM.

This will be considered a cash advance, and you’ll probably pay a steep fee.

If all else fails, just spend it down. When you have a negative balance, it’s essentially an account credit. If you continue to use your credit card for normal daily purchase, your charges will deduct from the negative balance until it returns to zero.

Nerdy Takeaway: In most cases, a negative balance requires no action on your part. But if you need to turn it into cash, reach out to your card issuer for help — don’t try to withdraw it from an ATM.