Westpac dumps AMEX - changes points earn on MC

[oz_mark]

The "partnership" that WBC will now have with AMEX will be to refer WBC customers to AMEX who will issue an AMEX card, carry the risk and manage the customer.

The weasel words in the email only give part of the story and not the background nor does the email explain anything of any substance.

Part of this deal will be for WBC to share customer credit information with AMEX in order for AMEX to offer a credit limit without a full credit application but still with a credit enquiry.

It's interesting, as somewhere in the regulatory changes there was some stuff about anti-avoidance. I can only think that Westpac and American Express have moved things far enough to not get caught up in the anti-avoidance net.

 

[mick]

Despite having all my personal and business banking with Westpac, I haven't heard a peep out of them in regards to the changes. As a long time Earth card holder I'm pretty disappointed.

Check your Messages in Westpac Internet Banking - you should see the announcement there. It was posted on Thursday evening for me.

 

[astrosly]

Check your Messages in Westpac Internet Banking - you should see the announcement there. It was posted on Thursday evening for me.

Thanks, I don't login that often and would have expected an email for such an announcement saying that one of my cards will be cancelled in a few months. I have had Earth Black for quite a few years and will be sorry to see it go, it was a great little earner and with half price annual fee.

Will be interested so see what the offer on the new card from AmEx is, and also what they are going to do an annual fee pro-rata refund if I want to cancel my Mastercard card since the annual fee is due in January and the AmEx card is gone early April.

 

[mick]

Thanks, I don't login that often and would have expected an email for such an announcement saying that one of my cards will be cancelled in a few months. I have had Earth Black for quite a few years and will be sorry to see it go, it was a great little earner and with half price annual fee.

Will be interested so see what the offer on the new card from AmEx is, and also what they are going to do an annual fee pro-rata refund if I want to cancel my Mastercard card since the annual fee is due in January and the AmEx card is gone early April.

For me, the decision to cancel will be easy because my annual fee will be due late March - unless, of course, Westpac provide me with a compelling offer to stay.

 

[deluxeflyer]

There is one Westpac issued card which hasn't been mentioned yet.
I'm dreading hearing it's fate.

 

[kpc]

There is one Westpac issued card which hasn't been mentioned yet.
I'm dreading hearing it's fate.

@cove already has accepted its demise!

 

[oz_mark]

There is one Westpac issued card which hasn't been mentioned yet.
I'm dreading hearing it's fate.

The language of the announcements suggests all Westpac issued Amex cards are going, and Alititude cardholders will be offered an alternative.

 

[GSP]

I wonder what this how this will be applied from how many AMEX issued cards you may have and 18 month wait period with applying for new AMEX cards.

 

[rock86]

I wonder what this how this will be applied from how many AMEX issued cards you may have and 18 month wait period with applying for new AMEX cards.

Nobody knows as yet, but let's hope it is like their other 'co-branded' cards (DJ AMEX's). Where even previous AMEX cardholders are still eligible for the bonus' as long as they hadn't held a card out of that 'family' in the last 18 months.

 

[deluxeflyer]

Yes, but what's the alternative for the unmentioned card....is my worry.

The language of the announcements suggests all Westpac issued Amex cards are going, and Alititude cardholders will be offered an alternative.

 

[deluxeflyer]

Got my Altitude Black statement with the annual fee on it.
So I called up to ask for a discount or waiver on the annual fee.
The operator said not sure what can be done but she will ask someone further up.
"Oh I notice you've had this card since day one, you've been with us a long time yada yada yada."
Puts me on hold, comes back and says supervisor or whoever says no discount or waiver offered,
and wait for this ..... it totally beggars disbelief.... :
" The anual fee is based on the MasterCard side and not on the Amex."
So I said, what a shame. I'll call in the next day or 2 to cancel completely.

Is anyone as dumbfounded as I am now ?

 

[albyd]

Seems to be reflective of everyone’s policies now. Difficult to get a fee concession since the interchange cuts came into force - even with Amex direct even though they’re not affected.

 

[ChrisFlyer]

Called the other week - managed an annual fee waiver on my Black card for this year. Had to speak to someone in 'applications' though, not 'retention', nor the first person you speak to. Not sure it was worth the effort as I'm mostly using AMEX direct-earn cards these days, but the WBC AMEX is handy in a few places currently like the Post Office where it gives full points.

 

[lonewolf]

Hi Guys,

I know there was all this stuff about the RBA and new regulations etc earlier this year, It hadnt affected my cards too much yet (except for some points earning changes) and i found it somewhat confusing what it was all about but now I am even more confused on whats happening? I have the Altitude Black cards. I loved having the Amex and MC on the same account and same annual fee etc I dont quite understand how this is going to work now? There will be AMEX issued cards but only for Westpac available to us, does that mean i know have 2 annual fees rather than one? And how does this affect my priority pass lounge cards as well as all the other Black card benefits like travel insurance and purchase insurance etc etc? What about the points? Is the new AMEX issued card going to be a separate account with separate points?

I have like 1.3 Million points at the moment on my account, should i go about trying to use it soon because this card doesnt sound as great anymore .

Also Why was credit cards affected? I dont get it, what was the problem or issue that required new regulations and why do the new regulations adversely affect AMEX and credit cards issued by banks? I would think there are far worse problems inherent with the Banking system than their credit cards and Amex?

 

[edcba]

In my case Westpac is not only dumping AmEx but raising the annual fee, for MC only, by 50%!

 

[albyd]

Lonewolf,

Essentially, the RBA cut how much banks could charge each other (interchange) to process card payments. This is the revenue that directly funds reward points.

Banks have had to cut the value of their reward programs to reflect this by reducing the value of existing points and reducing or limiting how many points you can earn.

There’ve been progressive cuts over a number of years but the banks issued super premium cards (ie now everyone has a platinum card not because we’re special but because the banks used to earn more).

Amex was not included in these changes. To get around the fee caps, banks started issuing Amex cards.

The RBA’s latest changes have regulated these bank Amex cards so they earn no more than MC or Visa so there’s no advantage to the banks to get us to carry two cards around as they can’t give use more rewards for Amex.

Westpac’s deal with Amex allows Westpac Amex customers to still carry an Amex but you’ll be dealing directly with Amex not Westpac although it’s logo will likely be on it.

 

[N860CR]

I was hoping Westpac might improve the MC earn a bit, but they letter they've sent basically says the MC stays exactly the same and the Amex doesn't exist anymore. Seems like a massive cut for exactly the same cost to the consumer.

 

[KLN]

Will be interested to see what the earn rate for points will be on the new amex they will be offering, as still getting 2.5 on my ATO spend via Rewardpay

 

[edcba]

Seems like a massive cut for exactly the same cost to the consumer.

In my case it's a massive cut for a 50% increase in cost!

 

[Nutcase]

Given that all the Bank's cards businesses have the same costs and revenues it cannot come as any surprise that this card has fallen into line along with all the other scheme rewards cards in the market.

I was hoping Westpac might improve the MC earn a bit, but they letter they've sent basically says the MC stays exactly the same and the Amex doesn't exist anymore. Seems like a massive cut for exactly the same cost to the consumer.

In my case it's a massive cut for a 50% increase in cost!

As has been discussed ad nauseam - Interchange was capped at 0.80% which is the revenue bucket that points are paid out of. If you cut the revenue, then the rewards have to be cut as well. All issuing Banks are affected by this change.

There is an assumption that because you are a big spender on a rewards card that you are of immense value and importance to the Bank. This is simply not true especially if you are churning cards. You are most likely costing the Bank money especially if you have a large limit which is not fully utilised and never revolves a balance.

Given that no one here has ever paid any interest, ancillary fees and also refuses to pay an annual fee yet expects free lounge passes, free travel insurance and a set of steak knives, WBC are probably glad to see the back of the AMEX deal and many of the card holders as well.