BNZ Credit Card rewards - please check my maths

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Forums › Finance and wealth management › BNZ Credit Card rewards - please check my maths

floydbloke

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#315839 21-Aug-2024 11:15

Just received an email from BNZ that credit card rewards are changing, and not in the customer's favour of course.

In my case I receive 1.67 points for every $1 I spend. Their cashback was $1.34 for every 200 points, changing to $1.28 for every 200 points.

I calculate this as:

Old 1 point value: 1.34/200 = $0.0067 - every $1 I spend: 1.67 * 0.0067 = $0.011189 cash back

New 1 point value: 1.28/200 = $0.0064 - every $1 I spend: 1.67 * 0.0064 = $0.010688 cash back

Therefore if I'm being charged a 1% fee for credit card payment (e.g. on-line bill c/card payments to Sky, Contact Energy) I'm still better off than bank transfer?

Have I got the maths right?

(Yes, it's a petty amount but I get satisfaction from knowing that I'm 'winning' and contributing as little as I can to corporate profits.)

Sometimes I use big words I don't always fully understand in an effort to make myself sound more photosynthesis.

Handsomedan

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#3274092 21-Aug-2024 11:20

With the reduction in interchange and the continued scrutiny over fees and charges, I'd say that the fact that you're getting any kind of reward for using a card is a bonus.

Don't be surprised if that goes the way of the dodo in the next year or two.

As far as your maths goes - I think you're just about at a break-even at this stage.

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alasta

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#3274114 21-Aug-2024 11:59

The thing that annoys me about BNZ rewards is that the points expire after three years, but there is no easy way to see what points you have expiring in the near future.

jonathan18

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#3274125 21-Aug-2024 12:48

I got the same email today - I totally expected it to arrive at some point, given other banks have made similar changes (I had been going to switch to a TSB Platinum as it had the most generous cashback scheme, only to find out they had just announced a reduction in rates).

The other annoying thing is that for those of us that automatically have their points exchanged for cash we’ll have to do this manually - which is I guess designed to encourage people to choose options that aren’t as costly to the bank and/or forget about using them. The changes about a year ago were idiotic as far as cashback went - it used to be a straightforward calculation of 1.x% (sorry can’t remember the amount) of total spend, whereas they changed it to the much more convoluted scheme outlined in the OP.

I guess it’ll reach a point where we’ll be lucky to have the fees covered by the rewards!

floydbloke

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#3274127 21-Aug-2024 12:54

jonathan18: I got the same email today - I totally expected it to arrive at some point, given other banks have made similar changes (I had been going to switch to a TSB Platinum as it had the most generous cashback scheme, only to find out they had just announced a reduction in rates).

The other annoying thing is that for those of us that automatically have their points exchanged for cash we’ll have to do this manually - which is I guess designed to encourage people to choose options that aren’t as costly to the bank and/or forget about using them. The changes about a year ago were idiotic as far as cashback went - it used to be a straightforward calculation of 1.x% (sorry can’t remember the amount) of total spend, whereas they changed it to the much more convoluted scheme outlined in the OP.

I guess it’ll reach a point where we’ll be lucky to have the fees covered by the rewards!

.. and of course this sort of notice comes by email rather than through an app notification where all recipients could give it a 'thumbs down' because "we can't possibly let our feedback stats reflect what the customers really think of it".

Sometimes I use big words I don't always fully understand in an effort to make myself sound more photosynthesis.

rugrat

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#3274730 23-Aug-2024 13:04

They are also canceling the monthly automatic cash back, have to go and convert it manually. I just have the classic card so $1 gives 1 point.

I have just converted all points I have, as if wait a week lose 3 cents for every 100 points. As I’m on the $1 = 1 point earn rate a drop of close to 3% reward rate.

With more and more places placing a surcharge the card is getting less valuable that way as well.

I’m thinking of trying the Dosh card, but then they could lower their cash back at any time too, currently 1% and no fees. I would get an extra $100 to $200 a year above BNZ cash back at what I spend at moment a year. There is also deals in applic where can get more cash back, but they would need to be relevant to where I shop at to be of benefit.

jonathan18

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#3274788 23-Aug-2024 13:34

rugrat:

They are also canceling the monthly automatic cash back, have to go and convert it manually. I just have the classic card so $1 gives 1 point.

Yep, I raised that earlier.