Diners Club to offer revolving credit

[Sn00py]

Extract from InfoChoice
https://www.infochoice.com.au/Home/...bid/141/Default.aspx?ArticleId=34729&count=10

26/08/08
New credit cards shake up market

Diners Club will offer its 300,000 Australian card holders a revolving credit facility on their card as competition in the credit card market intensifies with the launch of a number of new products from retailers, airlines and banks. Currently Diners Club, like the traditional American Express Card is a charge card payable in full at the end of each month. American Express began offering credit cards, where the monthly balance revolves to the next month if not paid in full, about ten years ago. As credit cards lose market share to debit cards, where consumers can only spend what they have deposited in the account linked to the card, some card issuers are revamping their range of cards and focussing on high value platinum offerings. Credit card market share is losing out to debit cards, down from 70 per cent to 66 per cent now. The relaunch of Qantas Frequent Flyer program is expected to shake up the market as the program looks for cards to partner under a new deal that favours Qantas. David Jones is launching an American Express card soon while Woolworths has announced its MasterCard offering.

Source: The Australian Financial Review

Anyone received information from Diners in regards to this yet?

 

[oz_mark]

Extract from InfoChoice
https://www.infochoice.com.au/Home/...bid/141/Default.aspx?ArticleId=34729&count=10

26/08/08
New credit cards shake up market

Diners Club will offer its 300,000 Australian card holders a revolving credit facility on their card as competition in the credit card market intensifies with the launch of a number of new products from retailers, airlines and banks. Currently Diners Club, like the traditional American Express Card is a charge card payable in full at the end of each month. American Express began offering credit cards, where the monthly balance revolves to the next month if not paid in full, about ten years ago. As credit cards lose market share to debit cards, where consumers can only spend what they have deposited in the account linked to the card, some card issuers are revamping their range of cards and focussing on high value platinum offerings. Credit card market share is losing out to debit cards, down from 70 per cent to 66 per cent now. The relaunch of Qantas Frequent Flyer program is expected to shake up the market as the program looks for cards to partner under a new deal that favours Qantas. David Jones is launching an American Express card soon while Woolworths has announced its MasterCard offering.

Source: The Australian Financial Review

Anyone received information from Diners in regards to this yet?

I heard that there would be more info on this after the Melbourne Diners Club operation had been absorbed in the Citibank operation in Sydney, where it will be run by the Citibank team. Certainly DIners needs to do something to improve itself in the market, and I believe one of the reasons behind the move to absorb into Citibank was to do this.

 

[Sn00py]

I heard that there would be more info on this after the Melbourne Diners Club operation had been absorbed in the Citibank operation in Sydney, where it will be run by the Citibank team. Certainly DIners needs to do something to improve itself in the market, and I believe one of the reasons behind the move to absorb into Citibank was to do this.

Any timeframes for the merger to happen?

This new product would be the equivalent of the Amex Line Of Credit but
They technically have a "Line Of Credit" product called the Diners Club Credit Line.

This makes me wonder what will happen to the existing Diners Club Credit Line customers?

As the article suggests that all existing Diners Club customers will receive a revolving credit line so the Diners Club Credit Line will be obsolete product?

 

[oz_mark]

Any timeframes for the merger to happen?

This new product would be the equivalent of the Amex Line Of Credit but
They technically have a "Line Of Credit" product called the Diners Club Credit Line.

This makes me wonder what will happen to the existing Diners Club Credit Line customers?

As the article suggests that all existing Diners Club customers will receive a revolving credit line so the Diners Club Credit Line will be obsolete product?

Not sure of the overall timeline, but the absorption into Citibank is underway.

 

[UP4014]

Wonder if they will start capping limits, was very handy to have unlimited cap a few years back when stuck in a South American coup for a week.

 

[Sn00py]

Wonder if they will start capping limits, was very handy to have unlimited cap a few years back when stuck in a South American coup for a week.

I find that AMEX is more flexible in the spending limits than Diners. At least AMEX is upfront and able to tell you their "pre-authorized" amount for their charge card. Anything that exceeds the "pre-authorized" amount can be solved over the phone.

 

[NM]

Our US based company cards are a combined Diners and Mastercard. Its run by Citibank and carries both Diners and Mastercard logos. As far as I know it operates as a charge card (i.e. to be paid off in full each month), but is supposed to be processed as a Mastercard by merchants.

 

[SIA1A]

Our US based company cards are a combined Diners and Mastercard. Its run by Citibank and carries both Diners and Mastercard logos. As far as I know it operates as a charge card (i.e. to be paid off in full each month), but is supposed to be processed as a Mastercard by merchants.

Diners in the US is no longer run by Citibank - Discover Card purchased Diners USA from Citibank a few months ago, along with Diners operations in other markets.

The Australian Diners operation has been owned by Citibank for some years - and frankly, milked for all it's worth! 'Absorption' into Citibank Australia means that a Melbourne office gets closed and presumably the call centre (which is already overseas) gets combined with Citi's Philippines call center.

I for one detest the way this card operates and unless things are upgraded to match or beat offers that are commonplace in the market, I will give this card the flick.

Uncompetitive policies include:

- 14 days to pay the monthly bill (most cards offer 28 days)

- Surcharges for almost all bill payment methods - except autopay.

- Unresponsive call centre (the Melbourne call centre was great - until it was exported)

- Auto-Embarrassment when the merchant (despite a Diners label on his window) often says 'sorry, no Diners.')

- According to several people in small business that I know, the highest merchant fees in the business by a country mile. No wonder customers are often asked to pay the merchant fee as a surcharge.

- Primitive online website. You can't even pay your bill using it. The alternative, of course, is to use BPay - but Diners surcharges!

The only small saving grace is no points-capping. But Citi is pretty generous about handing out Platinum Visa cards with low or no annual fees these days - and a points cap corresponding to $100,000 or $120,00 annual spending. This largesse on one side of Citi makes Diners even less competitive on the other side.