Originally Posted by
canadiancow
Given the revenue split from credit cards, I would be shocked if the bonus did not have part of its cost paid by Aeroplan.
In fact, I remember one of the execs talking about why the Chase card had FRCs originally instead of points, and it definitely sounded like they were funding at least part of it.
I don't have any specifics of AC's deals with its issuers, but I can guarantee that, whatever the mechanic, AC is bearing a portion of the cost of sign-up bonuses. Both AC and the card issuers are incentivized to limit churning. A difference between AC and most airlines is that while most airlines have only one co-brand issuer in a given market, AC is partnered with several financial institutions. Even those who aren't churners could benefit by periodically hopping from one issuer to another, e.g. switching back and forth between TD VIP and CIBC VIP every 12 months or whatever. That's not quite churning, but it's still not good for the issuers, and it's particularly bad for AC, which will eat a chunk of they sign-up bonus.
Originally Posted by
billdokes
So I do my personal banking at CIBC and my Business banking at TD...do the new T's&C's suggest that since I hold an Aeroplan Infinite Privilege with CIBC I can't get another Aeroplan associated card from TD, and if I do they can cancel my account?
They're poorly written, so yes, 11(v)(i) could be read that way. I highly doubt they intend to target people like you though, since what they likely want to do is cut down on the cost of churning.