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Credit Card Rewards Schemes

Discussion in 'Property Finance' started by MBT, 8th Feb, 2016.

  1. MBT

    MBT Member

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    Hi all,

    Just have a question regarding credit cards and the point schemes attached to them.
    I have an ANZ credit card that is supposed to accumute 1.5 points per dollar spent for visa and 3 points per dollar for AMEX.
    Our model is to pay all expenses with a credit card then pay off the balance in full every month. All our pays goes into an offset account until we pay off the cc every month etc...
    My question is I had about 300k points stored up until just before xmas, I cashed them in for $700. After xmas I received a letter from anz saying that my credit cards obly accrue 1 point for 1 dollar (visa) and 2 points for AMEX. Has anyone had this happen before?
    Thanks
    Martin
     
  2. wylie

    wylie Moderator Staff Member

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    I've always resisted the temptation to cash in the points as they offer less than they are worth if I take vouchers. But I haven't needed anything they offer, so just let them accumulate.

    I recently traded 340,000(ish) for $2,500 worth of travel. Your cash offer sounds very low.

    I wonder if there was something buried in the fine print that you have triggered giving you lower points per dollar? I would be calling the bank and asking them what has happened.
     
    Perthguy likes this.
  3. MBT

    MBT Member

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    Thanks Wylie, I will try and call them again today. I was put on hold the other night for 30 mins!
     
  4. Jkat

    Jkat Well-Known Member

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    Sometimes they just change the rate at which point accumulate, I have had this happen before -- but the letter we got said something like:

    we are changing our rewards program etc. etc. From X date this is what you will accumulate on your mastercard and this is what you will get on the amex.
     
    MBT likes this.
  5. Xenia

    Xenia Adelaide Property Manager Business Member

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    Hi MBT
    I'm looking into getting these kinds of cards too so please let us know what you find.
     
  6. Shawn

    Shawn Well-Known Member

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    Guys,

    I recently signed up to the ANZ Black Frequent Flyer program. For now, you get 75,000 Qantas Frequent Flyer points once you spend $2500 within the first 3 months.

    I got the card 3 weeks ago and have been using it. To put it into perspective. A SYD-MEL return flight is 16,000 points to Tullamarine. This means you get just under 5 return trips to Melbourne with the points!
     
  7. Truly Exotic

    Truly Exotic Well-Known Member

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    genera;;y. the lower the points requirement or the closest to cash, ie gift cards, cash back etc.
    have the lowest beneift

    I know you are in a time senstive situation, but see if you can redeem a long distance flight, business class is better, first class is best

    my recent transaction was 280k Qantas points plus $1.1k tax busines class return to europe

    market value for business class is $6-8k
     
    albanga likes this.
  8. albanga

    albanga Well-Known Member

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    It is not uncommon for these cards to change. I had a woolworths credit card which was great and then they moved from Macquarie to HSBC and the card become quite ordinary!

    It was uncapped earning at 1-$1 with MasterCard which is the only one I could find that allowed that and only at a $129 annual rate. Now capped at $3,500 per month!
     
  9. Redom

    Redom Mortgage Broker Business Member

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    Generally you get most bang for your buck when you travel with the points. I love them, i have a relatively flexible work schedule that requires quite a fair bit of travel. Manage to get all around the country without having to shell out too much using points.

    When trading in for cash, its the lowest value option - they're incentivising you quite strongly not to do it.
     
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  10. Santaslayer

    Santaslayer Well-Known Member

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    I just got a westpac Black Amex/MasterCard with the altitude rewards programs which lets you redeem flights and vouchers, electronics etc. It also affords the luxury of entry into Amex and partner Lounges in the airport inclusive. About to find out how good it is!
     
  11. Cactus

    Cactus Well-Known Member

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    It's what people in marketing call a program enhancement. It has nothing to do with your redemption.

    Most programs will be reducing their rewards points earn or redemption value because of anticipated changes to the surcharges that business can charge will put pressure on the merchant fees the banks can charge.

    In another note don't redeem for cash this is the worst redemption. 300k anz points would have got you 150k velocity points almost 1 return flight business to LA or just over 1economy return flight to Europe. This is between $1300 and $3,000 value.
     
  12. peastman

    peastman Well-Known Member

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    I have had a Westpac Earth Black card now for a couple of years and amassed a reasonable amount in Qantas points. I used 20k of them for an upgrade to business class Perth Melb over xmas. Absolute bargain. It's only about $200 worth of points for a $1000 upgrade.
     
    Westminster likes this.
  13. wombat777

    wombat777 Well-Known Member Premium Member

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    I have a Suncorp Clear Options Credit Card which is a re-branded citibank card.

    Today with the statement I received a letter saying that they will no longer pay rewards points for BPAY transactions. Yet another ploy to make the the card pointless ( pun intended ).
     
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  14. wylie

    wylie Moderator Staff Member

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    That is what we have. Swapped 340,000(ish) points for $2500(ish) cruise.

    I asked about transferring my points to an airline point scheme but the conversion rate was not as good as using them to pay for the travel.
     
  15. albanga

    albanga Well-Known Member

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    This is slightly off topic but I just cannot justify an upgrade to business ecspecially on a short domestic flight.
    Given the option for a Mel-Syd upgrade or a $50 woolies voucher I would seriously take the voucher everytime and spend that $50 grocery saving on something more useful. I can honestly say I've never been uncomfortable on a 1 hour plane flight.
     
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  16. MBT

    MBT Member

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    Rang ANZ this morning. They insist that the lowering of the accruement rates for points is across the board for the platinum range. FF cards remain unchanged.
    They said it was not a result of me cashing in the points.
     
  17. peastman

    peastman Well-Known Member

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    If given the opportunity to upgrade to business for $50 even for a one hour flight, I would grab it. Horses for courses I suppose.
     
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  18. Cactus

    Cactus Well-Known Member

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    Depends on the airline, business to Bali on virgin isn't even worth $50. J/k.

    I personally never fly business because I never fly at someone else's expense, and I typically fly with wife and 2 kids so the upgrade cost is huge, and if the kids make the slightest peep I would feel even more anxious than it makes me feel in economy.

    I am 6"4' and I've rarely been comfortable in economy.
     
  19. S0805

    S0805 Well-Known Member

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    I am also looking at this sort of cards.....So far, my mind has been thinking stay away from rewards. don't know why..... I've their standard platinum card with no rewards. Last week I was inquiring about this and they suggested 'ANZ rewards platinum' and from sound like you have the same. I am hesitant to go that way given they are saying it will new application (i.e. credit hit)....why the hell new application they've my record from last 16 yrs...
     
    MBT likes this.
  20. MBT

    MBT Member

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    Yeah thats the one ive got mate, "rewards platinum". When i questioned them about upgrading to the ff black I asked if they could just transfer the cards and they just said youve got to find out by application, i.e. credit hit. I think my broker is going to apply for the ff black during my next home loan application with anz (breakfree package they force you to have a credit card)