Suncorp halves QFF earn rate

[bPeteb]

I'm not sure where to post this so mods feel free to move.

Just received our latest Suncorp credit card statement with this little gem at the top -

From 1 March 2016...

2. The rate at which you earn Qantas Frequent Flyer reward points will change from 1 point per $1

spent to 0.5 points per $1 spent.

I'm guessing a citibank decision?

We put a lot of money through that card so it looks like it's time to find a better option.

 

[AustraliaPoochie]

Maybe overall QCC wins, 0.5 points for using my own money ie no credit cards debts.

 

[lovetravellingoz]

We put a lot of money through that card so it looks like it's time to find a better option.

Unfortunately this seems to be a trend which if continues may mean that all options become less lucrative.

 

[andye]

Maybe overall QCC wins, 0.5 points for using my own money ie no credit cards debts.

No interest-free period though (accept that you do save on the QF CC surcharge with QCC)

 

[AustraliaPoochie]

Well, there is now a disadvantage of having too much points.
Someone on here lost was it a million points, because ANZ suspected or knew the member was using their card to pay for business expenses, which is a "not allowed" on non business accounts.
(No interest free period, granted), but then, my QCC and VGW is no interest accrued at all!
++ at the moment it seems that my QCC is allowed to be used to pay my ABN quarterly tax to the ATO plus the credit card surcharge of course.
One of the banks has also removed points earnt on bpay transactions.
Not to mention too that some accounts have a cap on how much you can use on card, above that the earn goes down to 0.33 points per $1 (except AMEX where the banks make a squillion)/what next, banks keep increasing FF cards annual fees...

 

[opusman]

at the moment it seems that my QCC is allowed to be used to pay my ABN quarterly tax to the ATO

I guess if there were going to be a last man standing (in terms of QFF awards) it would be your QCC. Think about it.

 

[bPeteb]

Maybe you're right. We pay the balance off every month but I'd rather our money was sitting against our mortgage for a month. I suppose I'd have to do the maths to work that out. Might give ANZ black a go. At least it's free for the first year.

 

[ozbeachbabe]

No interest-free period though (accept that you do save on the QF CC surcharge with QCC)

You can avoid the QF cc surcharge by purchasing a QF voucher for however many people will be on the booking eg 4 pax x AUD50.00 =:AUD200.00 then use whatever cc you want.

 

[blu]

Might give ANZ black a go. At least it's free for the first year.

We like it. The travel insurance is good.
1.5 points per $ on the Amex.

Not sure what to do with the Suncorp card now, not much value.
Have been through "rule changes" with Citi twice before with previous Citi cards.

 

[trippin_the_rift]

I do wonder how much these point reductions hurt the QFF business.
Having a major banking customer essentially halving their spend with you each month has to make a dent.
Having every major bank reduce their spend with you isn't pretty for the bottom line.

And when consumers need to spend more $ to have the same effective QFF points balance, it makes other frequent flyer currencies hold a higher perceived value. Assuming people would consider shifting where they credit points towards.

Interesting times over the coming months...

 

[exceladdict]

I do wonder how much these point reductions hurt the QFF business.
Having a major banking customer essentially halving their spend with you each month has to make a dent.
Having every major bank reduce their spend with you isn't pretty for the bottom line.

And when consumers need to spend more $ to have the same effective QFF points balance, it makes other frequent flyer currencies hold a higher perceived value. Assuming people would consider shifting where they credit points towards.

True, but it also avoids the opposite, which is Qantas making their points cheaper through devaluation.

Having a Qantas point balance that I'm keen to not be devalued makes me prefer option A.

 

[quokka77]

But AJ says these RBA interchange regulations will have no effect on QFF?

 

[trippin_the_rift]

But AJ says these RBA interchange regulations will have no effect on QFF?

he also said nobody used wifi on planes

 

[quokka77]

That AJ. What a joker. Can never tell when he's serious.

 

[Isochronous]

Unsurprising given Suncorp outsource their card business to Citi.

 

[cove]

Thanks for telling us this is linked to Citibank.

 

[kelvedon]

So who predicts Qantas reducing the price of the points they wholesale to the banks? The effect of the RBA interchange fee reduction together with the Woolworths walking away has to hit the QFF scheme quite hard.

 

[CaptJCool]

Hadn't thought about this much because my earn rate with Citi had been enhanced twice. 2 for $1 to 1 for $1 to 0.5 for $1.... So of course I use it less..... Comment regarding holding money in mortgage vs paying card in full. That's clear - paying 21% vs 8% means paying off the credit card.

****The risk we all face is if the interest charges get brought forward to start from Statement date instead of Due date. Already if a day late u get slapped with a late fee. But 14 days between end of month by 12 means one could feasibly be up for 168 days worth of 21% on say $3,000 = $290 = $24 per month. In reading the Citi docs put on here by others I was left with the impression that this within the NEW rules and could happen...

Now, would QFF halve the redemption value on top of the banks halving the earn rate ??
Given EBIT is 34% of $1 bill prob not. The seat redemption rate runs around 8-10% of seats per month, of course money is transferred to pay for these and we pay charges on Classic award seats anyway.

 

[exceladdict]

So who predicts Qantas reducing the price of the points they wholesale to the banks? The effect of the RBA interchange fee reduction together with the Woolworths walking away has to hit the QFF scheme quite hard.

Not without them devaluing the point redemptions.

****The risk we all face is if the interest charges get brought forward to start from Statement date instead of Due date. Already if a day late u get slapped with a late fee. But 14 days between end of month by 12 means one could feasibly be up for 168 days worth of 21% on say $3,000 = $290 = $24 per month. In reading the Citi docs put on here by others I was left with the impression that this within the NEW rules and could happen...

Reducing the number of interest free days on a card product, especially to zero, is a pretty big deal. Can't see a bank like Citi doing that without warning.