Diners Club Points to Velocity Transfer - 33% devaluation

[Supersonic Swinger]

In case people have a Diners Club card and don't follow the DC forum, previously 1 Diner's Club point converted to 1 Velocity Point.

As of the last couple of days, the rate is now 1.5 DC points convert to 1 Velocity Point. Apparently a change brought about at the request of Velocity.

1 DC:1 Velocity was compelling. 1.5:1 no longer is, particularly when you can convert 2 DC into SPG points.

Fun while it lasted

 

[MH_fan]

Seems like there wasn't much warning for this change.

 

[Hammando]

I had diners call me today about another matter, I asked the guy I spoke to and he said it was a decision by diners and velocity.

The timing seems to be inline with an "enhancement" to redemptions on CBG by Citibank, and cutting off points for ATO spend.

So likely a diners (Citibank) enhancement because the product was deemed to generous.

 

[jazza1971]

wow so happy I cleared out my 50K+ points a month ago, but sucky that no notice was given for others...

 

[gwilli1]

And I was thinking of ditching my Diners QFF Card to go back to standard Diners to pool all my points to VFF... thats not going to happen now . Will look at an alternative flexible card where redemption to VFF is at least 1:1

 

[Supersonic Swinger]

So likely a diners (Citibank) enhancement because the product was deemed to generous.

I would think Velocity would have something to do with it as well. They probably didn't want another card earning as many Velocity points for booking on Virgin Australia as the Velocity Platinum Amex will do after 23 July.

I wonder if this is the start of something more. I read that recently Virgin appointed a new loyalty programs head who previously headed up the Qantas program. They would have been intimately involved in such "enhancements" as direct earn credit cards (i.e. "once we have your loyalty, we won't continue to earn it, we'll enforce it on you").

This has definitely reduced the appeal of Velocity for me, they certainly won't be getting any more money out of my credit card spend.

 

[Plutonus]

This sounds like shenanigans.

If Velocity does indeed charge $x per point transferred to them why would they care what the redemption rate is. Wouldn't they like it higher so they get more $$?

Seems more like cost cutting from Citibank - if a points transfer cost them $15,000 it now costs them $10,000, but depletes points balance (their liability) by the same amount as it did before the change.