Future of Credit Card Sign-Up Bonus & Earn Rates

[coyote25]

Interesting article on how the RBA reforms reducing the interchange fees to maximum of 0.8% from 1 July 2017 could impact bonus sign-ups and earning rates.

If true the days and value of churning credit cards could be somewhat reduced.

https://www.ausbt.com.au/aussie-banks-rethink-credit-card-points-fees-ahead-of-rba-reform

 

[Dr Ralph]

Similar discussions have taken place over the last few years and in my view little has changed so far.

The reality is these cards have the potential to be very lucrative for the banks. So whilst there's so much competition for customers little is likely to change.

But if I'm wrong, make hay whilst the sun shines!

 

[coyote25]

Similar discussions have taken place over the last few years and in my view little has changed so far.

The reality if these cards have the potential to be very lucrative for the banks. So whilst there's so much competition for customers little is likely to change.

But if I'm wrong, make hay whilst the sun shines!

Yeah I was thinking the same, but now more motivated to take advance and save up those point for later J and F awards,

 

[albyd]

It's interesting to see Westpac (assuming others will follow) are considering issuing Westpac branded Amex cards through Amex direct to work around these changes. I hope this doesn't prompt a reaction from the RBA at its next review (like the decision to equalise interchange on bank issued Amex with bank issued MC/Visa).
Might spoil the benefit 'true' Amex direct card holders currently enjoy.

 

[basso]

It's interesting to see Westpac (assuming others will follow) are considering issuing Westpac branded Amex cards through Amex direct to work around these changes.

The image in the article looks as though it has come from a survey. I wouldn't count on that survey being from Westpac. Amex have been doing surveys, and often present scenarios based on whichever card (with an Amex attached) you claim to have. Different people get the same scenarios, but the actual card they are questioned about may not be the same.

 

[docjames]

Yes the surveys are going around () pondering annual fee increases, point earn reductions, thresholds for card cancellations, switching from MC/Visa to Amex and vice-versa, fee to keep "attached" Amex, what rewards / discounts / features are essentail / nice / unnecessary....

 

[Caversham04]

Yes the surveys are going around () pondering annual fee increases, point earn reductions, thresholds for card cancellations, switching from MC/Visa to Amex and vice-versa, fee to keep "attached" Amex, what rewards / discounts / features are essentail / nice / unnecessary....

The e-Rewards survey, or another one? I took the e-Rewards survey today and made my views VERY clear about lower earn rates / extra fees

 

[lovetravellingoz]

The only constant in life is change, and the FF life is not immune.

So change is occurring, and will continue to occur. Sometimes bad and sometimes good. One just has to keep amending ones FF Strategy as things evolve in order to maximise one earn and burn.

Here's hoping for more floods than droughts.

 

[Nutcase]

Simply put, The party is over.

When interchange on premium/super premium scheme cards reduces from nearly 2% currently to 0.80% and given that this is the revenue bucket that FF points are paid from then there is a logical conclusion to draw which is that the days of scheme cards providing rewards is over come September. The wholesale weighted average will be locked to 0.50% and include other card types that have previously been excluded.

If anyone can make the sums work on 0.80% capped interchange and paying QF etc points as well then please go right ahead. QF take 1% of spend for a 1:1 conversion rate. Don't forget that there are enormous costs involved in running a cards business. Risk, compliance, customer service all adds up. The revolving balances will not pay for points and neither will the annual fee or other ancillary fees. These fee buckets don't allow for points to be paid out of them as points are paid on spend, not on revolving balances.

Im sure you will all want to argue this heavily and by all means go right ahead.

You may also remember my forecasts (with 100% accuracy) regarding the BWA transaction account.

See you in September.

 

[Dr Ralph]

Simply put, The party is over.

When interchange on premium/super premium scheme cards reduces from nearly 2% currently to 0.80% and given that this is the revenue bucket that FF points are paid from then there is a logical conclusion to draw which is that the days of scheme cards providing rewards is over come September. The wholesale weighted average will be locked to 0.50% and include other card types that have previously been excluded.

If anyone can make the sums work on 0.80% capped interchange and paying QF etc points as well then please go right ahead. QF take 1% of spend for a 1:1 conversion rate. Don't forget that there are enormous costs involved in running a cards business. Risk, compliance, customer service all adds up. The revolving balances will not pay for points and neither will the annual fee or other ancillary fees. These fee buckets don't allow for points to be paid out of them as points are paid on spend, not on revolving balances.

Im sure you will all want to argue this heavily and by all means go right ahead.

You may also remember my forecasts (with 100% accuracy) regarding the BWA transaction account.

See you in September.

Here's hoping a lot of people take your approach and think its all too hard. More points for me

 

[NoName]

You may also remember my forecasts (with 100% accuracy) regarding the BWA transaction account.

See you in September.

This last part is just blatant trolling. Anyone who does actually remember will know that you've been anything BUT 100% right. Quite the opposite actually. In fact the only think you've correct on was that BW would close people's accounts and really whoopdidoo because everyone already knew that would happen sooner or later. No points clawed back, no QFF accounts closed but hey, keep grasping onto every little straw that pops up from time to time.

 

[burmans]

This last part is just blatant trolling. Anyone who does actually remember will know that you've been anything BUT 100% right. Quite the opposite actually. In fact the only think you've correct on was that BW would close people's accounts and really whoopdidoo because everyone already knew that would happen sooner or later. No points clawed back, no QFF accounts closed but hey, keep grasping onto every little straw that pops up from time to time.

Anyone who makes a prediction 100 times and gets it right once then claims that once as a 100% success will probably only convince themselves they are a genius.

 

[lovetravellingoz]

Simply put, The party is over.

.

Luckily there always seems to be a new party. Some are more fun than others.

 

[burmans]

Luckily there always seems to be a new party. Some are more fun than others.

Still plenty of partying to go for most of us.

 

[Nutcase]

This last part is just blatant trolling. Anyone who does actually remember will know that you've been anything BUT 100% right. Quite the opposite actually. In fact the only think you've correct on was that BW would close people's accounts and really whoopdidoo because everyone already knew that would happen sooner or later. No points clawed back, no QFF accounts closed but hey, keep grasping onto every little straw that pops up from time to time.

I'm always amused at the accusation of trolling whenever something is proffered that disagrees with the view of another. It's an easy way out rather than to see aknowledge facts that are presented and then to offer a cogent and adult argument to back your case.

In this instance the discussion of interchange reductions, fee buckets and revenue was met with a trolling accusation as well as the use of a non word "whooptidoo" which validates this rather juvenile response. Very amusing.

With the BWA accounts. The offenders had their accounts closed. What QF does next is still potentially negative towards those who rorted the system.

 

[Nutcase]

Still plenty of partying to go for most of us.

Luckily there always seems to be a new party. Some are more fun than others.

There seems to be little interest in the changes coming to interchange in July nor any understanding of the economics of the cards business and the broader impact that this will have on consumers. It appears that a more juvenile and peurile attitude is pervasive in this thread. Its a pity as participants could have learned something rather than making ill informed comments and trolling accusations.

 

[Dr Ralph]

Enjoying the flaming attempts by you Nutcase.

Hoping you don't get a bite though.

 

[NoName]

I'm always amused at the accusation of trolling whenever something is proffered that disagrees with the view of another. It's an easy way out rather than to see aknowledge facts that are presented and then to offer a cogent and adult argument to back your case.

In this instance the discussion of interchange reductions, fee buckets and revenue was met with a trolling accusation as well as the use of a non word "whooptidoo" which validates this rather juvenile response. Very amusing.

With the BWA accounts. The offenders had their accounts closed. What QF does next is still potentially negative towards those who rorted the system.

Glad you find it amusing. Likewise, I find your inability to read a post properly quite amusing too.

The trolling comment was directed at your claim that you'd been 100% correct about the BW situation which for anyone who had actually followed your diabolically incorrect predictions would be the only conclusion they could draw.

I have made no comment at all about the discussion of interchange reductions. The fact that you seem to think that I have probably gives some insite into why you think going 1 for 20-odd on the BW thread equates to a 100% strike rate.

 

[lovetravellingoz]

There seems to be little interest in the changes coming to interchange in July nor any understanding of the economics of the cards business and the broader impact that this will have on consumers. It appears that a more juvenile and peurile attitude is pervasive in this thread. Its a pity as participants could have learned something rather than making ill informed comments and trolling accusations.

While you judge me as ill-informed, juvenile and purile I am more than happy about the lucrative number of points I have gained over the decades and I will share with you this piece of wisdom. The biggest opportunities to earn points by and large come from the banks/airlines etc doing things wrong, rather than them doing things right. The ATO tap that some (not I) were able to plunder being one of the few lucrative non-mistake runs.

Based on their past performance, and knowing human nature, I remain supremely confident in my abilities to mine such errors, and unintended consequences, in the future as opportunities will occur again.

This game will only end if airlines cease frequent flyer programs. There will always be a new Healthy Choice Foods, Amex Everyday Promo, Hoover free lights promotion, US Mint etc. Some small, some large and some huge. July will not be the End of the Points Hunting World.

 

[docjames]

There seems to be little interest in the changes coming to interchange in July nor any understanding of the economics of the cards business and the broader impact that this will have on consumers. It appears that a more juvenile and peurile attitude is pervasive in this thread. Its a pity as participants could have learned something rather than making ill informed comments and trolling accusations.[/QUOTE to earn points mainly come from when the banks ]

While you judge me as ill-informed, juevenile and purile I am more than happy about the lucrative points I have gained over the decades and I will share with you this piece of wisdom. The biggest opportunities to earn points by and large come from the banks/airlines etc doing things wrong, rather than them doing things right.

Based on their past performance, and knowing human nature, I remain supremely confident in my abilities to mine such errors, and unintended consequences, in the future as opportunities will occur again.

This game will only end if airlines cease frequent flyer programs. There will always be a new Healthy Choice Foods, Amex Everday Promo, Hoover free lights promotion, US Mint etc. Some small, some large and some huge. July will not be the End of the Points Hunting World.

Don't forget Cat Food and Tacos!