Woolworths Qantas Credit Card Canceled letter.

[cove]

Thanks for your reply Max_1.
I have Citi Select times two to run the bigger trade creditors and BAS and quarterly company and personal taxes.
Also I use Amex Ultimate times two and Westpac Platinum Kris Flyer Amex times two and then EDR for personal.
If you ever want to get even,you would buy $8k of Woolies gift cards at a time for $7,600 and pay on a point and a half card(as per above).Then repeat......
You did get 375k of points in less than a year!
Anyway the new Qantas Credit Union card is beckoning and may be an alternative.
Also MrsMax_1 could do something.....

 

[cove]

Actually Foreigner is correct on the next cards. If you can get 2 Citi Business cards running you get 500k cap for $298 and business stuff is acceptable.

 

[Globetrotter]

What is the best way of finding out which 'personal' credit cards allow/don't allow business transactions, especially high volume charges?

I put all my business charges on my Commonwealth Diamond credit card, approx $500k per year so I hope I never receive one of those letters!

 

[Foreigner]

What is the best way of finding out which 'personal' credit cards allow/don't allow business transactions, especially high volume charges?

I'd read the fine print and, if uncertain, speak to the card issuers. Members of this forum may also share their knowledge.

 

[oz_mark]

Thats what I think too. Shame they don't have the courage to state that in the letter to me.

Perhaps they are not 100% certain, so don't want to open themselves up to a challenge :shock:

 

[Moopere]

I don't understand it to be honest. Woolies / HSBC should be pleased - 375K$ in 6 months, business or not, what do they care? They'd been reaping the 0.5-1-2% or whatever it is from the top and making a big stash of cash themselves.

The whole 'not for business use' rewards card thing has me mystified. I've never had a supplier of services ask me (or my business) to use less of their services..... its pretty counter intuitive.

A good heads up for all of us here though - thanks for sharing.

 

[cove]

HSBC credit card on a direct basis is capped so maybe the uncapped Woolworths EDR card was viewed by HSBC as too generous in this instance.
Certainly HSBC and Woolworths would have been earning percentages of fees and it was not the extraordinarily low ATO 0.48% for ATO BAS that has triggered the cancellation.

 

[Foreigner]

I don't understand it to be honest. Woolies / HSBC should be pleased - 375K$ in 6 months, business or not, what do they care? They'd been reaping the 0.5-1-2% or whatever it is from the top and making a big stash of cash themselves.

The whole 'not for business use' rewards card thing has me mystified. I've never had a supplier of services ask me (or my business) to use less of their services..... its pretty counter intuitive.

A good heads up for all of us here though - thanks for sharing.

There's a cost to those FF points so I guess that's the reason oftentimes a CAP and/or conditions are in place to limit such cost to either the merchant or the card issuer, or both.

 

[Moopere]

There's a cost to those FF points so I guess that's the reason oftentimes a CAP and/or conditions are in place to limit such cost to either the merchant or the card issuer, or both.

Yes, sure. There is a cost associated with most service delivery. But surely to cap the cost is to cap the income too? ie; you stop delivering full service to customer, customer stops paying for your services?

I'd be hugely surprised if CC companies are losing money on transactions because of the cost of FF points (?) Hoping and waiting for us all to hit the cap so they can start to become profitable.

Just seems fishy to me. I guess I can't easily fathom their business model.

 

[Foreigner]

The woolworths card is the cheaper fee one, isn't it? Most card issuers have multitude of products, each with different fees and features. Those without CAPs, for instance, generally have more fees. On the other hand, the cheap(er) cards have meaner t&cs.

My personal experience with HSBC has been poor. Whereas with Amex, Westpac and, recently, Citi, it's been exemplary.

 

[Moopere]

The woolworths card is the cheaper fee one, isn't it? Most card issuers have multitude of products, each with different fees and features. Those without CAPs, for instance, generally have more fees. On the other hand, the cheap(er) cards have meaner t&cs.

Perhaps thats it. Its market segmentation.

You wouldn't think though that a few hundred dollars of fees on a card, even say 500 dollars or more, would be worthwhile haggling over though when your customer is busy spending and making you money. $375K at 0.5% = $1875, at 1% = $3750. If anything I can see a case for a minimum spend T&C in order to justify the cost of producing the card, interacting with you and sending you statements.

Anyway, not arguing with reality here, it is what it is, but I just can't see the reasoning. Sounds artificial to me.

 

[Foreigner]

Let's hope consumer shall be king in 2012. Let's wish for more competition between issuers and they are challenged in attracting and keeping their loyal customers.

 

[JetLagged]

Anyway the new Qantas Credit Union card is beckoning and may be an alternative.

Can anyone tell me about the Qantas Credit Union - only find the Qantas Staff Credit Union in a search online, and that, of course, has specific membership restrictions.

Thanks in anticipation.

 

[Flashback]

Probably no point challenging as if they point out the no business use clause they may then try to get back all the points.

Sent from my Transformer TF101 using AustFreqFly

 

[Hvr]

Can anyone tell me about the Qantas Credit Union - only find the Qantas Staff Credit Union in a search online, and that, of course, has specific membership restrictions.

Thanks in anticipation.

Look here for the specific points offer:
Visa Platinum Credit Card - Qantas Staff Credit Union


And here for who can join:
Who can join? - Qantas Staff Credit Union

 

[Mal]

The whole 'not for business use' rewards card thing has me mystified. I've never had a supplier of services ask me (or my business) to use less of their services..... its pretty counter intuitive.

It increases their risk profile. Not only do they have to worry about you going bankrupt, they also have to worry about your business going bankrupt too.

 

[AdMEL]

Westpac credit cards (Altitude, Kris Flyer, etc) prohibit business use, however I have never heard of a card being withdrawn for business use in breach of the t & c's. Several years ago, many customers, who were identified as having business use, were switched to Altitude Business Limited Edition cards - fees, etc were exactly the same, but business use was allowed. As the name suggests, this was a limited offer. Having said that, this product (Altitude Business) is being made available next month.

MAX_1, without meaning to be rude, you did deliberately and blatantly breach the t & c's. As such, surely you did so on the basis that this could happen?

 

[Moopere]

MAX_1, without meaning to be rude, you did deliberately and blatantly breach the t & c's. As such, surely you did so on the basis that this could happen?

Yes, well ... anyone know HSBC/Woolies definition of "Business Use" ?? Paying a few hundred thousand in tax or whatever doesn't in itself signify business use, it could well be private - one wonders where that line is drawn.

 

[Deleted User]

Yes, well ... anyone know HSBC/Woolies definition of "Business Use" ?? Paying a few hundred thousand in tax or whatever doesn't in itself signify business use, it could well be private - one wonders where that line is drawn.

Pretty much as was talked about here before, there is no line...! they will hide behind the T&C's simply because they can and since its pretty hard to know 100% that the T&C's have been broken, they implement into the T&C's that they can cancel your account with no reason...

Pretty much their rules so take them or leave them... :shock:

 

[MAX_1]

MAX_1, without meaning to be rude, you did deliberately and blatantly breach the t & c's. As such, surely you did so on the basis that this could happen?

Yes. I would have liked a warning and the card would have been keep for personal use only. Not sure what impact this has on my credit rating.

As has been said before, its only a game.

An earlier suggestion was to get a Citi Business Gold card. I do suspect the cap is only $80K - about 1-2 months spend so does not solve my problem.

What I am trying to figure out is what the earn rate for each Citi card -Select , Signature and Platinum expressed in QFF points.