sbiddle

This isn't that relevant for New Zealand *yet* - but expect to see the same policies launched here by the end of the year once the review is complete here in New Zealand. Based on what I've heard in recent months we will probably see the Australian policy basically replicated here.

The end of the golden weather from APD and SP earn on credit cards is going to end - these will be slashed and I'm sure banks will have fun explaining that to customers.

Australia has slashed interchange rates to 0.5% and 0.8% on premium cards and it won't be legal for retailers to charge a flat fee for credit card surcharges - something that will clearly annoy airlines greatly.

http://www.rba.gov.au/media-releases/2016/mr-16-15.html

Blackcloud

Yes imagine the CC fee for a BP return AKL-LHR @0.8%.
If airlines take revenue hit here they will make up for it in higher fares or new add ons and CC providers will drop the APD or FF points earn as well.
It just widens the gap to US/Euro based people and their ridiculous offers.

sbiddle

The interchange fee money go round clampdown started in the EU with their restrictions that came into play on 1st Dec last year.

dadig

Seeing what has become of the Amex UK Platinum charge card benefits, it looks quite bleak

jaybeedee

As someone who has got silver and will hit gold next month thanks to credit cards I am disappointed.

As someone who runs an ecommerce business and pays $35,000p.a. in merchant fees I am pleased (more premium cards being used was the reasoning the bank gave when reviewing up our rates)

And if I was still the traveller I used to be who earned my Oneworld emerald and Star alliance Gold through sitting on planes I would probably be pleased to keep a bit of exclusivity ;-)

codyc1515

Really makes you wonder how banks will continue to market their expensive card offerings, such as the Westpac World card (minimum $15k limit and $395 annual fee).

dadig

Mind you earning status miles or SP using credit cards is a very expensive way to retain status

robbau

Not if you were going to spend the money anyway and only if you don't pay it off by due date!

The promo last year with triple airpoints and double status helped get me to Elite. The value of airpoints earned was much greater than any surcharges (and most places don't surcharge IME).

Combined with ongoing fee waivers and clearing the balance every month, credit cards are a great earner for AP and, to a lesser degree, SP.

sbiddle

Expect earn rates to be slashed once this happens - I'd pick you'll see most premium cards drop to APD$1 per $200 spend, or maybe as low as $1 per $250

codyc1515

Not even worth it for my low to moderate spend vs. the annual fee.

nzkarit

If this does pan out like this will be interesting to see if NZ drops the status points to retain or gain the levels? As suspect a lot of travellers will drop back a level if they can't get Visa status points.

Blackcloud

Why? NZ did not increase the levels when they introduced SC earn by CC why would they then drop it if the SC earn is reduced from CC spend?
I do not know if there is an other FFP that offers status earn via CC spend?

sbiddle

A lot of people would argue the SP % you can earn from a CC is already incredibly generous. Yes CC earn has been beneficial to me in recent years so it is probably seen as a slightly hypocritical view, but when you have HVC's who fly very little and simply earn due to their CC it really makes a mockery of a FF program. APD earn is very different as that's not going towards status.

Part of the reason for the SP restructuring a few years ago and the attempt to move towards a revenue based FPP (which Airpoints certainly isn't with all the loopholes) was to reduce the number of Elite customers and increase the number of Gold.

drajknox

I earned more than 2000 SP last year from CC but only a very small fraction contributed to status due to requirements that at least 50% of status contribution must come from flights. Remember that HVC means high value customer and NZ would get paid significant amounts by banks for SP even those which are in fact effectively worthless. CC spend still probably generates significant 'value' for NZ. What will be very interesting is whether banks will, if they want to, be able to modify or exit what I believe were multiyear agreements after the BNZ exit. ANZ for one was very clear that they had negotiated a multiyear agreement.

The SP earn for domestic is pathetic and if you are flying mainly domestically and TT you can fly many times and only be silver or even jade. With say 8 SP per domestic flight and requirement of 225 flight sp for silver you could have 14 return domestic trips (more than one per month) and still be jade despite massive cc sps. Many transtasman discounted flights are not much better. To qualify gold you need 450 flight sp and elite 900 so I don't agree with your inference that there can be many HVC's who fly very little (unless perhaps mainly long haul flights). The only way to be 'HVC' without flying much is to join Koru and then you are paying a significant fee which I suppose if you're not flying much makes you valuable relative to the value you obtain from the membership if not using it.

Xiaotung

At the start of Airpoints becoming revenue based years ago, the cheapest long haul flight was earning at least 100 SP regardless of whether it was NZ or partner airlines. Now the SP earn rates on NZ are halved and on partner airlines only maybe a third of what they used to be. Cheapest short haul flights were earning 30 SP now typically just 7 SP.

For those who do the same amount of flying and can no longer make Gold/Elite through flights, they still can with the help of a credit card. And NZ pocket the extra revenue from the banks. What a smart business practice. That's what ultimately pissed off BNZ as they not only had to pay ADP they had to pay SP out of their own revenue.

I see this new credit card regulation a positive thing. With the increasing competition, I hope the value of APD/SP earned through flights will be somehow restored. After all this is a frequent flyer programme not a Flybuys. Earning SP on anything other than flying makes no sense to me.