Commbank Credit Card Changes + potential Discover Card offering

[kamchatsky]

Major changes coming to CBA credit card where it change the way you earn points. It would consider your other business with CBA for points earn:

Commonwealth Bank reimagines rewards for everyday banking, helping customers save on shopping, utility bills and travel

For the first time, more than nine million CommBank Yello customers can earn points across their home loans, savings, cards and insurance and redeem them with some of Australia’s best-known brands.

www.commbank.com.au

Also CBA is exploring issuing new premium charge card based on Discover network:

CommBank to expand card suite with new exclusive premium offering

CommBank is giving customers greater choice through a new premium charge card offer.

www.commbank.com.au

I don't know anyone who has ever had a Discover Card.....

Ironically Point Hacks produced a page outlining the CBA credit card changes, but looks like it has been withdrawn.

CBA punishes Qantas customers in reward points overhaul

The bank has struck a new partnership with Virgin ahead of a move by the RBA to cut the fees that can be charged for credit card transactions.

www.smh.com.au

CBA overhauls rewards program, shifting customers from Qantas to Virgin

The country’s biggest bank is offering Australians more opportunities to earn points across retail and travel.

www.afr.com

 

[The Man in Blue]

Most notable for me from the now withdrawn Point Hacks article was:
- Removal of the monthly fee waiver for spend per month.
- Points earning rate is tied to your Yelo tier
- QFF participation fee is up to $149/year
- Velocity participation fee TBA
- Qatar and Everyday Rewards added
- Appears the Smart Awards lose the FX free transactions.

It was mentioned there is no participation fee for Everyday Rewards, so you could potentially transfer 'Yelo points' there and then onto QFF.

 

[Supersonic Swinger]

Also CBA is exploring issuing new premium charge card based on Discover network:

I don't know anyone who has ever had a Discover Card....

Discover is the network which was behind Diners Club...

It would be ironic if after years of underinvestment in Diners Club by Citibank, and then acquisition by NAB which shut it down a few years ago, CBA now comes back with a Discover option... perhaps even called "Diners Club"?

 

[levelnine]

Discover was purchased by a massive US bank last year, Capital One. They are transitioning many of their cards over to the Discover network and investing heavily into it. I wouldn't be entirely surprised if it makes a come back in Australia in some form.

 

[Scr77]

Most notable for me from the now withdrawn Point Hacks article was:
- Removal of the monthly fee waiver for spend per month.
- Points earning rate is tied to your Yelo tier
- QFF participation fee is up to $149/year
- Velocity participation fee TBA
- Qatar and Everyday Rewards added
- Appears the Smart Awards lose the FX free transactions.

It was mentioned there is no participation fee for Everyday Rewards, so you could potentially transfer 'Yelo points' there and then onto QFF.

I missed this article. Since it was removed, I wonder how accurate it was….

I was hoping that CBA cards might see a smaller devaluation because they were already on the lower rewarding side.

CBA/virgin rarely have bonus transfer offers. Anyone thinking of transferring now to avoid a short notice surprise?

 

[henrus]

So the points hacks article had the following;

The two cards will become smart and ultimate (dropping the awards branding). CBA Yello tiers will remain the same (for now) but determine points earning:
0.5 points per $ for those on base tier, 0.75 for those on plus tier, 1 for those on gold tier and 1.5 for those on diamond tier. 2 points for International purchases regardless of tier.

Points can be changed to 3:1 into QF (with $149 fee), 2.5:1 into VA (with a bonus for the first 6 months of 20%), 2.5:1 into QR, 2:1 to Myer and 1.5:1 into Everyday Rewards (loop hole into QF).

Ultimate card will be $35 per month (unchanged) and smart $19 (also unchanged) but the fee waivers wont apply instead a monthly $25 travel/$10 dining credit for the Ultimate and $10/$10 for the Smart cards are introduced (making them effectively "free"). As for the credits it's currently unconfirmed but I suspect it'll be a travel credit in hopper and a dining credit in Eatclub or doordash (given these two recent partnerships). As noted in #2 post, the smart card loses the fee free International transactions.

 

[oz_mark]

It was mentioned there is no participation fee for Everyday Rewards, so you could potentially transfer 'Yelo points' there and then onto QFF.

Certainly no issues sending them onto QFF based on how other transfer partners work.

 

[henrus]

Certainly no issues sending them onto QFF based on how other transfer partners work.

It's unclear if points hacks jumped an embargo or something else but that's exactly what was outlined in the article. The rate to go from CBA to QF direct exactly matches the CBA to EDR to QF rate but with a $149 saving!

 

[Scr77]

So the points hacks article had the following;

The two cards will become smart and ultimate (dropping the awards branding). CBA Yello tiers will remain the same (for now) but determine points earning:
0.5 points per $ for those on base tier, 0.75 for those on plus tier, 1 for those on gold tier and 1.5 for those on diamond tier. 2 points for International purchases regardless of tier.

Points can be changed to 3:1 into QF (with $149 fee), 2.5:1 into VA (with a bonus for the first 6 months of 20%), 2.5:1 into QR, 2:1 to Myer and 1.5:1 into Everyday Rewards (loop hole into QF).

Ultimate card will be $35 per month (unchanged) and smart $19 (also unchanged) but the fee waivers wont apply instead a monthly $25 travel/$10 dining credit for the Ultimate and $10/$10 for the Smart cards are introduced (making them effectively "free"). As for the credits it's currently unconfirmed but I suspect it'll be a travel credit in hopper and a dining credit in Eatclub or doordash (given these two recent partnerships). As noted in #2 post, the smart card loses the fee free International transactions.

Thanks for the details. It’s all getting very complicated! So Smart and Ultimate will earn the same points but the fees/rebates are different? What’s the incentive to have Ultimate? Different points capping? Just fee free OS?

If current points balances remain, then current transfer rate is better than the 20% bonus for first 6 months to velocity.

 

[henrus]

Thanks for the details. It’s all getting very complicated!

100%. It appears their point is to reward those who have multiple CBA products with mentioning that the world debit might even earn reward points.

I've done the maths and as I've currently got the smart awards, spend the $2k per month (making it fee free), get 1 point per $ and use it overseas for the travel insurance and international fee free nature it'll be best for me to upgrade.

As I've got yello gold so the earning rate remains the same (albeit a slight downgrade in transfer to partners however avios comes online again offset by the overseas increase jumping smart to ultimate) but will need to upgrade to the ultimate for the international fees to remain free and in turn end up paying $35 a month but these in theory should be cancelled out by these two new credits.

 

[Perengrine]

Did the article mention if the insuraces were continuing?

 

[henrus]

Did the article mention if the insuraces were continuing?

100% continuing on the Ultimate card. Smart awards I think it said it was but I can't quite remember.

 

[centeredcalm]

The big nasty that so far hasn't been mentioned in all these articles will also be points expiry is coming, previously CommBank Awards didn't expire if the card is open, CommBank Yello points will expire if no activity over 2 years.

"Your Points expire two (2) calendar years from the date you last:
(a) earned Points (for example, from using your CommBank Yello Earn Card); or
(b) redeemed Points (for example, to redeem a Reward), whichever is later.
Each time you earn or redeem Points during the 2-year period, the expiry period resets and a new 2-year period commences from that later date.
If you do not earn or redeem Points to reset the expiry period, your Points will be forfeited without notice once the 2-year period ends"

https://www.commbank.com.au/content/dam/commbank-assets/commbank-yello/docs/commbank-yello-changes/commbank-yello-terms.pdf

 

[PrudentTrip2775]

CommBank has confirmed several redemption partners for the October launch, with more to be added over time:

• Qantas Frequent Flyer (3:1 with $149 annual participation fee)
• Velocity Frequent Flyer (2.5:1)
• Qatar Airways Privilege Club (2.5:1)
• Myer (2:1)
• Everyday Rewards (1.5:1)

As well as offering fewer transfer partners than the same time last year, CommBank is also quietly devaluing points transfer rates. Currently, you can transfer Awards Points to Velocity Points at a 2:1 rate, but this drops to 2.5:1 from October. For Qantas, the rate is devalued from 2.5:1 to 3:1.

CommBank will also increase fees by 65% for those customers wanting to transfer Yello Points to Qantas Points. The current annual participation fee is $90, but from October this jumps to $149.

Source:

New CommBank "Yello" To Kill Awards Credit Cards

CommBank Awards is being axed and merged into CommBank Yello from October 2026. Here's what's changing, including new transfer partners and higher fees.

flighthacks.com.au

 

[MG1]

This is not good!

I have the Ultimate Awards card, for the sole purpose of having a points-earning credit card to use overseas without having to pay for a foreign transaction fee. I'm a little confused as to what the new effective earn rate will be.

Using Velocity as an example, the effective earn rate is 1.5 VFF points/$ for any non-AUD purchase (you get 3 Awards points per $ redeemed at 2 Awards points per 1 VFF point).

It looks like from October, this will be 0.8 VFF/$ - that's effectively half (2 Yello points per $ for non-AUD purchases, redemeed at 2.5 Yello points per 1 VFF point)!

Will there be any conversion of existing Awards points into Yello points?
If not, I should transfer them now as I'm got a chunk of them there (if only there were a transfer bonus coming up (I know that CBA don't partake in these as often as other banks)).

Also, if the travel credit has to be used via their travel platform, that's effectively useless for me as I don't use that (I normally book directly with the hotel to obtain my hotel status).

 

[transpactraveller]

your Points will be forfeited without notice

This should be illegal

 

[kpc]

That is a reason I left CBA as my main babk 20+ years ago!

 

[centeredcalm]

Appears the Smart Awards lose the FX free transactions

Yep, it does, they've posted a page about the product changes here:

Credit Card Updates - CommBank

Upcoming changes to CommBank credit cards

www.commbank.com.au