ASB just destroyed Platinum CC True Rewards !

Ljedmeister on 15/09/2022 - 10:56

Received an email from ASB today, they make it sound like nothing major ….but…if you have ASB Platinum True rewards they have nearly halved the earning capability….

ASB Visa Platinum Rewards
From:
1 TR dollar for every
$100 you spend.
To:
1 TR dollar for every
$170 you spend.

The return on true rewards have been reduced from 1% of all spending down to 0.058%.

Shame on ASB!! I don't see merchants reducing their CC fees, so ASB is taking pure profit on this. Their last net profit result was 1.4 billion!!

Bankers screwing us out of every cent! It's annoying, I just bought the iphone 14 on true rewards , it will not happen again, I can't earn enough at the reduced rate!

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  • gooddeals on 16/09/2022 - 21:49
    +2

    I would recommend the free Amex card at present, if you have not got one.

    has $50 sign up bonus (which is ongoing), but also gets you a number of Amex promo like shop small, $15 off BP etc..

    https://www.americanexpress.com/nz/credit-cards/airnz-base-c…

    However, I would hold off changing Visa/ mastercards with other banks until there is a promo such as sign up bonus which is often worth around $300, which is more than the rewards lost from true rewards for a few months. This also depends on when your fee is next due etc..

    • thesla on 16/09/2022 - 22:18

      How amex is accepted online ? Compare to Visa/Mastercard ?

      • gooddeals on 16/09/2022 - 22:32
        +1

        Amex is not accepted everywhere, good to pick up the extra deals, and $1 airpoint from $100 spent is not great (there are better cards else where), but no annual fee. so depends on your overall spent. Generally speaking major supermarkets accept Amex, and most power companies and internet services, and more of the more expensive online store. (otherwise paying by Amex on line just like Visa/ mastercard.

        • thesla on 16/09/2022 - 22:43

          Right, because there is no fee, it's basically free and use it when there are some extra deals.

      • CheapJimmy on 18/09/2022 - 20:38
        +1

        An increasing number of merchants directly accept Amex.

        You can also use an Amex card through PayPal. So most online shopping you can use Amex.

        • Alan6984 on 18/09/2022 - 21:29

          Do you mean that an increasing number of merchants are ditching Amex? They certainly seem to be on a downward trend, compared to twenty / thirty years ago, when almost all petrol stations took Amex, plus all the supermarkets I think, and pretty much all restaurants too if I recall correctly. Far from the case now.

          However, I did not know about paying via Amex through PayPal - in which case, it might work out better. Does PayPal charge you extra fees for that?

          • CheapJimmy on 20/09/2022 - 07:54

            @Alan6984: Huh?

            I think only BP Doesn’t accept Amex as far as petrol stations. All supermarkets do.

            No fees through PayPal.

            All big brand retailers accept Amex but the small cafe/restaurant probably won’t.

            I think you’d be surprised.

            • Alan6984 on 23/09/2022 - 22:06

              @CheapJimmy: Definitely not all supermarkets - some PNS don't take it anymore, but since I have not visited all supermarkets, I could not be definitive as to which ones do and don't.

              Quite a few petrol stations seem not to take it anymore either - not just BP, but you maybe right that none of them do (couldn't say for certain).

              Good find about the lack of fees via PayPal.

              • gooddeals on 23/09/2022 - 23:45

                @Alan6984: I think many BPs (at least the ones I used) are accepting Amex, in fact there is a promotion from BP station offering $15 cash back from $100 spent.. https://www.cheapies.nz/node/34880

                (or buy a BP gift card if needed).

                so up to 15% discount that can be stacked with smart fuel discounts etc..

                may be smaller fuel stations may not accept Amex.

                • Alan6984 on 24/09/2022 - 09:01

                  @gooddeals: Could be - I don't use BP, I was just going on @CheapJimmy saying that they don't.

                  Nice discount :-)

      • Meridian on 16/09/2022 - 23:09

        It was a few years ago now when I last had one, but acceptance was a big problem then, I had a work Amex which they forced us to use and it was surprising how often people wouldnt accept it saying the fees were just to high. Just the other day I saw one of those signs saying 3% surcharge for Visa and 5% for Amex! -

        Overall doubt its improved much in these cost conscious times which is what always puts me off getting one. In other countries in particular the US its the stock standard but not here.

        • Alan6984 on 17/09/2022 - 10:51

          We just stopped taking Amex many years ago (might be ten years now) for exactly this reason. I might be off on my recollection, but I think they were charging us 5% fees, which we just added to the total for any customer that wanted to use it.

          Customers pretty much all moved to using Visa / Mastercard, or Debit Cards and Amex went to next to nothing, so we stopped bothering with them.

  • AleBeerenhoff on 15/09/2022 - 11:06
    +1

    That is real disappointing….time to look at switching providers maybe.

    • Alan6984 on 15/09/2022 - 11:17

      I agree. If it is significant to you, then you should certainly go to market.

      • huffboy on 15/09/2022 - 11:22

        other banks will follow soon. they just copy each other if it makes them more $$

        • Alan6984 on 15/09/2022 - 11:51

          My business does the same - we put up prices, and reduce value to our customers all the time. For some reason I just cannot fathom, we seem to have lost all our customers, but at least when (if) we ever sell anything ever again, we'll make a fortune!

    • 36wish on 15/09/2022 - 15:39

      Government will be regulating the merchant fee, I expect all banks to lower their rewards pretty soon.

      • Meridian on 16/09/2022 - 11:50

        Even if that is true, so an extreme move, in advance of the regulation and out of step of the market - is a pretty arrogant move. I hope customers teach them a lesson.

    • kyogui on 16/09/2022 - 14:03

      12 years ago switched from ANZ to ASB because ANZ was trying to charge me monthly fee for a regular account, looks like i might go back to them.

  • adengappa on 15/09/2022 - 12:18
    +1

    Been using BNZ for which I'm getting $1 for every $90 spend ( used to be $70 before) and some decent insurance benefits. Anything else that you are aware of giving better rewards?

    • PSG on 16/09/2022 - 17:34
      +1

      Looks like BNZ credit card rewards are changing on November 7th. Can’t find anything on the earn rates.

      https://www.bnz.co.nz/about-us/governance/public-notices

      • Martz5 on 16/09/2022 - 19:20

        Just had a quick read. It looks like they’ll no longer be offering cashback rewards and instead will be replacing it with BNZ Reward Points. Which you then redeem on rewards…Thats annoying…

    • jedmeister on 15/09/2022 - 12:46

      Thats a good deal, BNZ here I come :)

    • AleBeerenhoff on 15/09/2022 - 12:49

      I am thinking about running with ANZ and getting an airpoints card ($1 for every $85) and will see if they can come to the party with covering annual fees as we have our mortgage and other banking through them too…lol…I know I am dreaming, but you can only ask :D

    • alanimal on 16/09/2022 - 08:14

      Yeah I have that BNZ - used to get the fly buys but now get the cash back - its a nice little payment at that time of the month!

    • kiwical on 16/09/2022 - 09:10

      BNZ here too. I try to purchase everything on it that doesn't have a CC surcharge. My cash back total for last 12 months was $1,756.41

      • justaddwater on 16/09/2022 - 16:40
        +1

        Damn you spent 150k

        • Tmurder91 on 16/09/2022 - 17:21
          +2

          I think you mean “dam, you bought every deal posted on here”

    • Nekomon on 19/09/2022 - 09:09

      Read my other post. BNZ will change the CC Cashback / Flybuys point from 07/11/22. I just saw their letter. It will be $125 spent for $1 cashback. I think we all need to move soon. They are doing the same as ASB but ASB has already cancelled their changes after heaps of complaints.

  • Stoic on 15/09/2022 - 13:07
    +1

    I wonder if other banks will follow soon. The government announced a cap on some fees banks can change with credit cards and this comes into effect in October.

    https://www.beehive.govt.nz/release/lower-card-fees-way-busi…

  • Meridian on 16/09/2022 - 11:44
    +1

    Im so annoyed by this, I havent got the email, but I saw the Stuff article. It just seems so brazen, I have been a ASB customer since I was 5 years old and have done millions of dollars through the bank in various ways.

    I have about 5k owing to me in True Rewards points which gives you an idea of my spending on the card, I will totally be looking at other options now.

    I only pay $12 per 6 months for the Platinum Card Fee (locked in for life) - so I might just keep the card anyway and just use it for travel insurance - but really look forward to seeing what other options, we need a really good comparison site for NZ - does anyone know one?

    • kyogui on 16/09/2022 - 14:01

      How did you get the cheaper fee locked in for life?

      • Meridian on 16/09/2022 - 14:47
        +1

        It was a while back. I had a standard card and they emailed me via the My Messages feature in the app saying

        "We recognise you as a valuable ASB customer and we’d like to reward you with an upgrade your credit card to our ASB Visa Platinum credit card with a special card fee of $12 every six months for as long as you hold the card. It’s our way of saying thanks for being with ASB"

        Clearly those days of being thanked are gone.

        • kyogui on 16/09/2022 - 15:20

          Wow that was cool, lucky you.

  • NeM2k2 on 19/09/2022 - 19:53
    +1

    Boy, this thread was a rollercoaster ride. I didn't even get an email about the changes, and now there won't be any changes? Nice work everyone that kicked up a stink.

  • JBURG on 15/09/2022 - 11:06

    Wow that's a big jump. I have their standard one, $1 True reward for every $150 spent no doubt that'll be getting a big jump too. Yet to receive an email. Does it say what day it comes into effect?

    • jedmeister on 15/09/2022 - 11:17

      4th October.

      Whole email… (i don't use smart fuel)…

      We’d like to inform you about some changes to the True Rewards & AA Smartfuel earn rates on ASB Visa Platinum Rewards cards from 4 October 2022.

      ASB Visa Platinum Rewards

      TR$
      From:
      1 TR dollar for every
      $100 you spend.

      To:

      1 TR dollar for every
      $170 you spend.

      AA Smartfuel
      From:
      1 cent per litre for every $50 you spend if you opted in for AA Smartfuel rewards.

      To:
      1 cent per litre for every $85 you spend if you opted in for AA Smartfuel rewards.

      Everything else about True Rewards stays the same and you’ll continue earning rewards on your eligible everyday credit card purchases. Your existing rewards balance is not affected and you still get the benefits of your ASB Visa Platinum Rewards credit card, like access to overseas travel insurance*.

  • Tmurder91 on 15/09/2022 - 13:31

    I haven’t actually received one yet. Will keep an eye out for that, and check what notice they have to give too as that feels pretty short, but it’s probably worded to not need any notice

    • AleBeerenhoff on 15/09/2022 - 13:38

      Same; nothing has come through for me yet either :\

      • Tmurder91 on 15/09/2022 - 19:24

        Section 18.1

        We may at any time in our sole discretion change the value of True Rewards dollars, the number of True Reward dollars to be accrued or the level of AA Smartfuel Discount to be accrued, by giving you at least ____ prior notice by direct communication to you.

        The most recent wayback machine archive 28 Oct 2021 links to Feb 2021 terms showing that 3 months notice is required

        The current ASB link from today has the May 2022 terms showing 14 days notice

        So sometime between Oct last year and May this year (probably May) we got issued with new terms
        Those terms likely took effect within 3 months (probably Aug) and are the current ones above showing 14 days notice.

        So as long as we get our notice before Tuesday next week they are in the clear.

        Though I am stuggling to find the new terms they issued to be earlier this year. I don't suppose you recall when those terms were last ammended?

  • loldev on 15/09/2022 - 14:04

    Lame! This sucks I love my true rewards we’ve brought so many things with them and paid for holidays. Glad cheapies is on to it, looking for the next best credit card deals now

  • JBURG on 15/09/2022 - 17:01

    ASB standard credit card jumping from 1 True Reward for $150 spent to 1 True Reward for $275 spent, that’s a $125 extra spend for a True Reward.

    Stuff article here about if for anyone interested- https://i.stuff.co.nz/business/money/129896000/asb-to-reduce…

    Definitely keeping an eye out on another rewards card, however will give it a month or two to see what other banks etc do.

  • envy on 15/09/2022 - 17:58

    This will be a result of Visa/Mastercard increasing their margin on transactions.

    Rather than passing costs onto merchants, the lessor evil will be to decrease reward points for consumers unfortunately.

    It's quite staggering how much a merchant pays to accept a credit card vs an eftpos card. If you weren't aware, there's significantly higher costs for a merchant to accept gold/platinum/flybuys etc cards vs a standard non reward credit card as well. Due to this, it costs the banks next to nothing to generate reward dollars for their customers because it comes straight out of the merchants pocket in fees.

    This won't just be an ASB thing either - all will follow suit shortly.

    • huffboy on 15/09/2022 - 20:04

      lack of competition. credit card rewards and bonuses are much better else where. even 3rd world countries have better rewards than 1 percent or less.

      • Alan6984 on 15/09/2022 - 21:55
        -2

        Yet another market opportunity - please let us know when you have this 'easy money' up and running in a market with little competition.

    • rkl on 15/09/2022 - 21:16

      Agree with most of your comment, but as a merchant we get charged a different fee for Visa, Mastercard. AMEX, We chat and Alipay.
      There is no difference between what type of Card (rewards vs non reward).

      • Bill on 15/09/2022 - 21:22

        Yep, pretty sure it's just amex being way higher

    • Alan6984 on 15/09/2022 - 21:53

      We have never been charged more to take payments via a rewards card. There are differences between Debit and Credit Cards, Mastercard and Visa, Amex etc, but no difference between, say, an ASB Visa True Rewards card, and an ASB Visa with no True Rewards.

      If you think about it, it would make no sense, since we would not even be able to tell, so we could not pass on the charge to the customer who wanted to pay with a more expensive card, than, say, a debit card which might be free (to the customer).

  • rkl on 15/09/2022 - 21:20

    Still no email, assume a yes, But anyone know if the change inpacts the Business Rewards card?

  • nzmax on 16/09/2022 - 00:23

    The best way to protest that sort of thing is change banks.They have been making massive profits off people buying and selling overpriced houses. If you buy a million dollar house today, you basically end up paying the bank another million dollars in interest over the loan period, which is like working 20 years to pay the bank just the interest.

    • Alan6984 on 16/09/2022 - 02:49
      -1

      Shhh… can't you hear the creaking noises??

  • moona on 16/09/2022 - 18:40

    That was a quick back down.. for now at least.

    https://i.stuff.co.nz/business/money/300690414/asb-backs-dow…

    • Meridian on 16/09/2022 - 23:06

      Must have some members of the Labour party in the management team - full of great ideas, till anyone hears about them then they back down a few hours later.

      Anyway, thats good I guess. But still interesting even the status quo isnt as good as say BNZ is offering. Silly for them to make everyone look now at options.

    • jackvdbuk on 17/09/2022 - 11:07

      Nice, I hope that they email Me about that, I was 100 percent going to switch after my trip with asb insurance due to that increase.

  • thesla on 16/09/2022 - 20:03

    Anybody know about ANZ CashReward ? Is it just cash ?

    I just had a look and comparing ANZ Premium Airpoint and Premium CashReward: with the assumption that you spend enough like 10k:
    - Return 1.17% vs 1%
    - Fee: 150 vs 80

    Unless you travel a lot and enjoy AirNZ lounge etc … feel like CashReward is better. Did I miss something ?

    • Nekomon on 19/09/2022 - 09:19
      +2

      1% Cashback is good rate but the Cashback happens after 12 months and they will deduct your annual fees at the same time. That means if you cancel the card during the year, you will not get any cashback. If you cancel it right after 12 month period, you will get charged the annual fees for next year before you can get the cashback. Good luck.

      • AleBeerenhoff on 19/09/2022 - 10:05
        +1

        Sneaky. Good to call this out. Thanks

    • thesla on 23/09/2022 - 19:42

      And I found that above 40k spending, the 0.17% difference start to kick in. So if you spend more than 40k in your CC then the Airpoint return become more interesting.

  • nzmax on 19/09/2022 - 19:55

    Next bank inline is the BNZ who look like they are doing similar changes by the looks of it. New Zealand consumers have the power. It is not as tough these Auzzie owned banks are doing it tough either.

    • Nekomon on 20/09/2022 - 08:09

      Now we have to look at the small banks. I guess the next one is the SBS Visa. Zero annual fees and $1 cashback for every $150 spend.

    • AleBeerenhoff on 20/09/2022 - 08:11

      Yup indeed. Businesses are in the business first and foremost of making money, no issues there, but when they cannot swallow some of the costs of operating rather than passing them onto the consumer who is ever being squeezed (especially when they are making seemingly embarrassingly high profits year on year), we need to make a noise by what ever means possible. It seems this time the noise has been heard; fingers crossed the ripple is felt across all the banks.

  • jedmeister on 20/09/2022 - 13:58

    Ha ha, the consumer wins, this time….just received this email….

    Last week we got in touch about proposed changes to True Rewards and AA Smartfuel earn rates on ASB Visa Platinum Rewards and ASB Visa Rewards cards.
    We value what our customers have to say and after listening to the feedback we’ve received we have decided to press pause on these changes while we take this feedback into account.
    The proposed changes were planned to come into effect in October so please be assured no earn rate changes have been made.

  • Seeker on 20/09/2022 - 14:26

    ‘Pause’ not ‘stop’ or ‘cancel’. The cynic in me thinks they may wait until a few other banks go ahead with a similar scheme (….cough…..BNZ….cough….), then press play on the idea again. The hopeful in me hopes otherwise.

    • jedmeister on 20/09/2022 - 15:25

      I have a feeling it is inevitable due to the new government rules on credit card fees. I believe they are reducing the margin that card companies can charge merchants. But, it is also a good thing because paywave may be fully adopted.

      • Seeker on 20/09/2022 - 15:32

        I think you are on the money.

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