Airpoints no more with Globalplus Credit Card

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#1263953 20-Mar-2015 11:46

Travel insurance is a great bonus, but you do need to be fully aware of the policy conditions. Lots of people (travel agents in particular) love trashing credit card insurance because they make massive commissions selling their own branded travel insurance policies.

Most policies these days are all fairly comparable, but there are some key differences. ANZ for example require you to take out all insurance that is offered by a rental car company. Typically you'll find that with basic CDW the excess may be $3000 for example, and most travel insurance policies will cover this. As every rental car company I've come across typically offers full excess reduction bringing this down to $0 it means the insurance policy offers would never have to be claimed upon.

Don't take the excess reduction and the ANZ policy won't cover you. Take it and crash the car and you're fully covered by that excess reduction policy so would have no claim against the ANZ policy.

Rental cars in themselves are incredibly complex and I don't think most people actually understand the terminology involved. There is a great post on here somewhere detailing things.

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#1264377 21-Mar-2015 00:00

We have a BNZ Global Plus Air NZ Visa. Wife none too impressed with having to change it.

Our (extremely substantial) mortgage is with ANZ (not our banking) so may ask them if they are able to waive any fees etc.

Wife's most appreciated feature was the discounted Koru membership as she flies all the time domestically. I've never bothered with it as I do not fly with Air NZ all that often - perhaps 12 times a year domestically at most and almost never internationally. $580 just to sit in the lounge 12 times a year seemed a bit much. Shame they do not have couples membership any more.

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#1264487 21-Mar-2015 12:02

sbiddle:
I spoke to an ANZ card manager about this last year and had to give him a lot of credit for being completely honest and admitting they weren't likely to make any changes, were happy with their position as not having the most competitive offering, and that they really aren't that interested in high value customers who racked up large credit card expenditure and paid this off each money because customers like that aren't profitable.

How can high value customers who rack up large credit card expenditure and pay it off each month not be profitable? My wife and I would spend $6k/mo between us on our cards and pay them off, but I'd be surprised if we didn't make our bank a ton of money. With an average of (say) 1% merchant fee, that's $60 earned per month. We don't earn anywhere near that back in rewards.

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#1264502 21-Mar-2015 12:24

TinyTim:
sbiddle:
I spoke to an ANZ card manager about this last year and had to give him a lot of credit for being completely honest and admitting they weren't likely to make any changes, were happy with their position as not having the most competitive offering, and that they really aren't that interested in high value customers who racked up large credit card expenditure and paid this off each money because customers like that aren't profitable.

How can high value customers who rack up large credit card expenditure and pay it off each month not be profitable? My wife and I would spend $6k/mo between us on our cards and pay them off, but I'd be surprised if we didn't make our bank a ton of money. With an average of (say) 1% merchant fee, that's $60 earned per month. We don't earn anywhere near that back in rewards.

I thought most high-spend customers would be pushed to platinum-type cards where you usually get about 1% back in rewards? Anyway, they might not be unprofitable but I guess they make a lot more money from the people paying 20% interest.

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#1264505 21-Mar-2015 12:34

I now have the headache of Westpac vs Kiwibank ... I need to keep my Airpoints, without an Airpoints CC the dollars will expire

Edit. Neither whom i Bank with. Which one is easier to sort problems out with i wonder. IIn guessing Westpac

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#1264511 21-Mar-2015 12:47

floydbloke:
khull: Switching providers is easy if you have a list of your outgoing payments. BNZ offers are not really stellar to begin with anyway. Westpac is a bit premature with the annoucement as they couldn't tell me how migration to the new airpoints cards work (even from within westpac card range on the same tier)

I pay mine off in full every month so fortunately balance transfer is not something I need to consider. I'm struggling to find an equivalent to the GlobalPlus Gold though, by way of fees, free travel insurance and rewards per dollar spent. None of the other banks offering airpoints seem to have a gold equivalent, which means having to go platinum with significantly higher fees.

I noticed that - the Westpac bundled travel insurance is significantly worse than BNZ's. No Gold Card = no cheaper option. At the Platinum Card the fees are close to $300 and the insurance is the equivilant to BNZs Gold Offering. Earning rates are only slightly better so whatever is was that Westpac offered Air NZ over BNZ doesn't seem to include a better deal for Air NZ customers.

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#1264556 21-Mar-2015 13:38

I moved to Kiwibank for the CC last year and my experience has been fantastic FWIW.

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#1264559 21-Mar-2015 13:45

Did you Bank with them?

If not, how did you access your cc account eg to check transactions etc,?

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#1264560 21-Mar-2015 13:49

joker97: Did you Bank with them?

If not, how did you access your cc account eg to check transactions etc,?

I moved my everyday account to them as well.

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#1264599 21-Mar-2015 15:21

I moved from global plus quite a few years ago when they reduced the incentives on it. Moved it to kiwibank where also get travel insurance bundled. Also use westpac and have hotpoints which are reasonable, although will cancel it soon, as I had it free for the 1st year,and the yearly cost is quite high. I do also get a free one with TSB, not points, but it has no annual fee for me as I have other accounts with them and have been using them for so many years..

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#1264609 21-Mar-2015 15:45

TinyTim:
sbiddle:
I spoke to an ANZ card manager about this last year and had to give him a lot of credit for being completely honest and admitting they weren't likely to make any changes, were happy with their position as not having the most competitive offering, and that they really aren't that interested in high value customers who racked up large credit card expenditure and paid this off each money because customers like that aren't profitable.

How can high value customers who rack up large credit card expenditure and pay it off each month not be profitable? My wife and I would spend $6k/mo between us on our cards and pay them off, but I'd be surprised if we didn't make our bank a ton of money. With an average of (say) 1% merchant fee, that's $60 earned per month. We don't earn anywhere near that back in rewards.

$60 a month is nothing for a bank. Those who don't pay off their debt monthly accrued much more profit for the bank. A small debt of $1000, lowest rate rate at 13.9%, bank will earn $139. And this will compound further if you can't complete the payment.

Anyway, I am a westpac customer - world card. I just hope they don't force me to airpoints. I don't use air new zealand for overseas travel. Only Singapore Airlines or Emirates for me.

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#1264611 21-Mar-2015 15:47

I have a globalplus with BNZ but was looking to change it for a low rate of home advantage as I don't get a lot of airpoints anyway but I can always use the Flybuys CC and convert over so not a biggie for me.

edit: BNZ other offerings have better advantage for me

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ajobbins

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#1264645 21-Mar-2015 18:11

nakedmolerat:
$60 a month is nothing for a bank. Those who don't pay off their debt monthly accrued much more profit for the bank. A small debt of $1000, lowest rate rate at 13.9%, bank will earn $139. And this will compound further if you can't complete the payment.

That's $139 a year tho, not a month. Only about $12/month.

Banks also make VERY good margin on overseas purchases. They really screw you on the exchange rate, and then kick you while you're down by adding a handling fee.

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#1264650 21-Mar-2015 18:23

TinyTim:
sbiddle:
I spoke to an ANZ card manager about this last year and had to give him a lot of credit for being completely honest and admitting they weren't likely to make any changes, were happy with their position as not having the most competitive offering, and that they really aren't that interested in high value customers who racked up large credit card expenditure and paid this off each money because customers like that aren't profitable.

How can high value customers who rack up large credit card expenditure and pay it off each month not be profitable? My wife and I would spend $6k/mo between us on our cards and pay them off, but I'd be surprised if we didn't make our bank a ton of money. With an average of (say) 1% merchant fee, that's $60 earned per month. We don't earn anywhere near that back in rewards.

With banks giving back APD $1 for every $65 - $90 spent that's more than 1% - if you're spending $6k per month you should probably be getting somewhere in the vicinity of APD $80 on an Airpoints credit card.

Banks make their money on customers who accrue interest which at 20ish % on a credit card isn't hard to do.

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#1264654 21-Mar-2015 18:27

ajobbins:
nakedmolerat:
$60 a month is nothing for a bank. Those who don't pay off their debt monthly accrued much more profit for the bank. A small debt of $1000, lowest rate rate at 13.9%, bank will earn $139. And this will compound further if you can't complete the payment.

That's $139 a year tho, not a month. Only about $12/month.

Banks also make VERY good margin on overseas purchases. They really screw you on the exchange rate, and then kick you while you're down by adding a handling fee.

Most NZ banks are only around 2.25% on transactions off the official exchange rate. Westpac are 2.5% apparently. I don't really consider this excessive when we know a big chunk is Visa/MasterCard taking their cut.

Cards like the Air NZ onesmart card take around 3.5% difference when using it as a credit card or loading funds onto it.

There are plenty of offerings in AU essentially slashing forex commission on purchases, it's a shame the market here isn't competitive enough for anybody to bother.

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