Bankwest Transaction account [General Discussion]

[dfcatch]

I wasn't aware of a overhead of microtransactions if anyone has any links I would be interested to see this. I think my mate is correct in saying a accountant going through the FY16/FY15 has noticed a large discrepancy. No one really knows how much BW would be buying points off Qantas Loyalty but general feel is between .5c and 1c. It is probably a blimp in the scheme of bankwest but was interested to see if any numbers stand out in the results.
Guestimates:
.8c / point Cost of Qantas Points
7600 points per card per month x CPP .8c = $60 / card
$60 / card x 675 people like this thread x average 3 cards per person x 12 months = $1.45m extra in operating costs

Your guess is way too low - it is highly unlikely that BW is paying less than 1c/point - and I think that is even pretty low.

 

[xzion]

Your guess is way too low - it is highly unlikely that BW is paying less than 1c/point - and I think that is even pretty low.

Really? I would have expected lower. Interchange rates are locked at around 0.5% by the RBA, which means banks gets somewhere around 0.5c to the dollar on card transactions. Why would they offer a rewards program with 1point/dollar if it's costing them twice as much as they make on the transaction to pay for the points?

 

[illumination]

Really? I would have expected lower. Interchange rates are locked at around 0.5% by the RBA, which means banks gets somewhere around 0.5c to the dollar on card transactions. Why would they offer a rewards program with 1point/dollar if it's costing them twice as much as they make on the transaction to pay for the points?

I don't think they expected such volume of $0.01 transactions.. that's why?
It was never part of the design.

As has been mentioned a handful of times in this thread, this product wasn't really thought out that well, and it's just amazing that it's been active for 2.5 years. One of the simplest ways it could've been made better for BW was by implementing a minimum transaction value of $1 to earn points.

 

[xzion]

I don't think they expected such volume of $0.01 transactions.. that's why?
It was never part of the design.

As has been mentioned a handful of times in this thread, this product wasn't really thought out that well, and it's just amazing that it's been active for 2.5 years. One of the simplest ways it could've been made better for BW was by implementing a minimum transaction value of $1 to earn points.

I'm not even talking about this deal specifically. Just on general credit card offers, 1point per dollar wouldn't make sense if points cost the banks 1c or more. This deal probably makes the most sense actually, since it's a flat cost per transaction, and BW would come out on top for any transaction over $10 (assuming points do cost them 1c).

 

[lovetravellingoz]

If they did that, there would be the most enormous outcry. They have millions of custommers, and there must be quite a few who, for one reason or another, get sub-dollar bills.

No outcry required as Telstra would just need to not require payment till the amount owed is over $1, or whatever minimum figure that the comapany feels is reasonable like $5, $10 etc..

For example I have often had credit card accounts where ony a small amount was owed and in these months the bank has required no payment. Indeed some of them did not even mail statements in months where $0 or very small amounts were owed.

 

[Cephalopod]

It may be that BW is working their way down the list, starting with those who have gained the most points. Presumably those who have had a house full of two-card accounts for the longest time will head the list, those who came in late with one card in the household will be nearer the bottom.

At some point there will be those who are clearly legitimately using the account, making (say) ten or twenty transactions in a week for regular things, even if they are small, like cups of coffee. Maybe worthwhile switching over to regular use now until the heat dies down?

Doubt it.

I'd be surprised if anyone has raked in more points than I.

No letter yet on any of my accounts, my partner got hers yesterday though.

Everyone should be funny buggers and go and open BW Reward Accounts and do the exact same thing, har har.

 

[Cephalopod]

By lodging a FOS complaint BW then can not action the closure till FOS closes the complaint.

If I receive a letter I'll only FOS it if they won't give me my points till closure date.

I suggest everyone submits requests for all personal information on file to be disclosed to you - this means you'll get internal notes etc.

 

[benjy]

No letter to date. I'm only a one card holder and always have been. Made 50 transactions a day for as long as Optus allowed it, a good 18 months, then got bored of trying to earn points per transaction so stopped around March this year. I have low balance but deposit at least 4k every month. Will be interesting to see if the letters continue to be received throughout next week.

 

[thehound]

By lodging a FOS complaint BW then can not action the closure till FOS closes the complaint.

If I receive a letter I'll only FOS it if they won't give me my points till closure date.

I suggest everyone submits requests for all personal information on file to be disclosed to you - this means you'll get internal notes etc.

Can you only lodge an FOS complaint if you've talked to the bank and not resolved the issue?

I'm currently overseas long term with my mail being redirected to my sister, so I'm concerned that by the time a cancellation letter winds its way through the mail system to her house, the closing date might already be upon me...

 

[Cephalopod]

Can you only lodge an FOS complaint if you've talked to the bank and not resolved the issue?

I'm currently overseas long term with my mail being redirected to my sister, so I'm concerned that by the time a cancellation letter winds its way through the mail system to her house, the closing date might already be upon me...

Yeah but they don't check.

Just make **** up and say you've sent emails in and no one has been responding.

FOS are generally happy to do 100% of their communication via email if you request to.

 

[jas]

I'd suggest not lying to FOS.

I'd also suggest copping it sweet. BW are well within their rights to shut down accounts at any time they choose, and it so happens they've chosen to shut these down now. That's the game, be thankful for the boatload of points generated, move on and wait for the next opportunity.

Making noise just attracts attention and means everyone will be a bit more careful next time to make sure these games can't be played.

(oh, and do you seriously think FOS are going to take kindly to you lodging a complaint when you've been paying many many 1c transactions on a daily basis to generate points?)

 

[dfcatch]

Really? I would have expected lower. Interchange rates are locked at around 0.5% by the RBA, which means banks gets somewhere around 0.5c to the dollar on card transactions. Why would they offer a rewards program with 1point/dollar if it's costing them twice as much as they make on the transaction to pay for the points?

1/ Interchange rates are not the only place that banks make money to fund reward programs. There's deposits held, interest paid (on loans and CC accounts etc) - the whole valuation is an actuarial process. Interchange rates are but one component.

2/ You're looking at it the wrong way - it's nothing to do with what the bank will pay - rather it's what QFF charge.

The inter-airline rate generally speaking is around .5-.8 (ish) cents.

The redemptions rates (cost to the airline) is often as high as .6 cents. The FFP isn't going to sell points lower than it's redemption cost ("Cost per Point").

Banks get the best deal out of anyone and most (if not all) will be paying above 1 cent per point.

 

[Blackswan]

Yeah but they don't check.

Just make **** up and say you've sent emails in and no one has been responding.

FOS are generally happy to do 100% of their communication via email if you request to.

I agree with the sentiment that BankWest are within their rights to close this loophole. It was good whilst it lasted - Make hay whilst the sun is shining. Move on.

Making a complaint (and lying) to FOS isn't a good move. I highly doubt they'll rule in your favour, and it only detracts their resources away from those who have legitimate complaints against their financial services provider.

 

[coles525]

I'd suggest not lying to FOS.

(oh, and do you seriously think FOS are going to take kindly to you lodging a complaint when you've been paying many many 1c transactions on a daily basis to generate points?)

Point of reference: citylink 1c payments through a nab cc promotion. NAB was told to pay up all points earnt.

 

[jas]

Bankwest haven't rescinded anyone's points, to my knowledge? If I'm wrong, then yes, FOS would be appropriate in that instance.

 

[burmans]

No outcry required as Telstra would just need to not require payment till the amount owed is over $1, or whatever minimum figure that the comapany feels is reasonable like $5, $10 etc..

Actually I thought Telstra already had exactly such a rule.

 

[burmans]

Point of reference: citylink 1c payments through a nab cc promotion. NAB was told to pay up all points earnt.

Yes but the question here is not whether BW paid up the points but whether they have the right to close the account. BW have been paying the points all right so you wont getting any value in making that argument, the only question here is whether they have a right to close the account. You do have a right to waste everyone's time here (i.e. your own and FOS's) but your chance of winning the argument are minimal.

 

[jas]

This. A business has decided to fire some customers. They are allowed to do so, as any business is. The only time FOS is appropriate would be if you were somehow gravely disadvantaged by their action (say, if they called in your mortgage with 14 days notice with no default on your part or something like that). Taking away your ability to generate a boatload of points in a way the account was not designed (even though within T&C) does not qualify.

Cop it sweet, that's the game, move on to the next opportunity (and smile at your QF point balance you've generated while this one has been going)

 

[Cephalopod]

I never said otherwise.

In fact I warned people early on that it'd eventually end and there was a good chance they would remove you as a customer.

 

[timmyb]

Two accounts, a friends and mrsb have received the dreaded letter with 5 Sept dates, both were used primarily for daily 50 x 1c payments, sometimes 0.10c, sometimes $1.
Both have been open for 6-12 months.
My account, has also been used for 50 x 1c payments(also 0.10c and $1 too), every day for 2+ years, I use it as a day to day account though, so the tranasctions are more normal. No letter as yet...

I feel these may be the last days though