Dinners Club Alliance with MasterCard
Apr 28, 2004, 1:25 pm
#17
Join Date: Jan 2002
Location: Frankfurt
Programs: LH SEN , UA 1K, SPG Platinum, HH Diamond, Hyatt Diamond, Marriott Silver, GHA Black
Posts: 429
Waste of management time
Instead of wasting their time to negotiate a deal with Mastercard, they should spend more time on Card Blanche and bring it on a competivie level with Amex Platinum/Centurion.
Apr 28, 2004, 7:27 pm
#18
Join Date: Jun 1999
Location: Rio de Janeiro, BRAZIL
Programs: AA 4MM EXP; Starwood Lifetime Plt
Posts: 2,498
Originally Posted by ahrz
This partnership is only for "Citibank US" issued cards, so no change for us, european members.
Not really! From the first post to this thread:
"In addition, Diners Club cards issued by Diners Club International franchises around the world would carry the MasterCard identifier on the back of the card, indicating acceptance at merchants in the U.S. and Canada that accept MasterCard credit cards."
Apr 28, 2004, 11:38 pm
#19
FlyerTalk Evangelist
Join Date: Mar 2002
Location: Saipan, MP 96950 USA (Commonwealth of the Northern Mariana Islands = the CNMI)
Programs: UA Silver, Hilton Silver. Life: UA .57 MM, United & Admirals Clubs (spousal), Marriott Platinum
Posts: 15,001
Excellent news. The DC is already my primary card, but this will make it more useful when travelling to non-tourist-oriented parts of the United States.
Apr 29, 2004, 12:06 am
#20
Join Date: Jun 2002
Location: San Jose, CA, USA
Programs: UA 1P
Posts: 366
Diners Club as a CC type is gone
Well well....
Great news, indeed!
However, I think DC is dying. I think the new DC will be a Diners Club flavor of MasterCard. Didn't Citibank already have a card as a "unique brand" with the MC logo on the back?
I don't think it's bad at all. Carrying MC with the benefits of DC is a dream come true. But I can see DC signage disappearing from stores and again, DC becoming a flavor of MC.
My $0.02
Great news, indeed!
However, I think DC is dying. I think the new DC will be a Diners Club flavor of MasterCard. Didn't Citibank already have a card as a "unique brand" with the MC logo on the back?
I don't think it's bad at all. Carrying MC with the benefits of DC is a dream come true. But I can see DC signage disappearing from stores and again, DC becoming a flavor of MC.
My $0.02
Apr 29, 2004, 2:56 pm
#21
Join Date: May 1998
Posts: 3,062
Apr 29, 2004, 10:13 pm
#22
Moderator: Southwest Airlines, Capital One
Join Date: Sep 1999
Location: California
Programs: WN Companion Pass, A-list preferred, Hyatt Globalist; United Club Lietime (sic) Member
Posts: 21,618
Here is what I read:
"The alliance would allow Diners Club cards that are issued in the United States and Canada to be reissued with the MasterCard brand on the front of the card in order to function as MasterCard cards. These cards would be accepted at the more than 22 million merchant locations worldwide where MasterCard credit cards are accepted."
OK, so your DC becomes a MC if Diners re-issues it that way.
"Currently there are no changes to the Diners Club products or programs. Cardmembers should continue to use their cards as usual, and enjoy the outstanding features, benefits, and service they have come to expect from Diners Club."
Currently, huh? As in: before the MC logo is added, maybe? I'll be surprised, albeit it pleasantly, if the current benefits apply to an MC logo card. After all, the current card already wins the Freddies without the MC logo.
"The alliance would allow Diners Club cards that are issued in the United States and Canada to be reissued with the MasterCard brand on the front of the card in order to function as MasterCard cards. These cards would be accepted at the more than 22 million merchant locations worldwide where MasterCard credit cards are accepted."
OK, so your DC becomes a MC if Diners re-issues it that way.
"Currently there are no changes to the Diners Club products or programs. Cardmembers should continue to use their cards as usual, and enjoy the outstanding features, benefits, and service they have come to expect from Diners Club."
Currently, huh? As in: before the MC logo is added, maybe? I'll be surprised, albeit it pleasantly, if the current benefits apply to an MC logo card. After all, the current card already wins the Freddies without the MC logo.
Apr 30, 2004, 12:35 am
#23
Join Date: Oct 2001
Location: Germany
Posts: 210
Before introducing new DC benefits, or enhancing the perks for a creditcard in general, you need a certain high number of issued cards, to get the money or revenues as the financial basement.
I think DC is on the right way.
The MC-connection will make the DC card very attractive for every day purchases and should bring DC a significant number of new cardholders during the next years.
If it‘ll really turn out that way, I am sure DC will enhance ist benefits and perks more and more and will introduce new cards or features, that are very well comparable to other premium cards like Amex platinum or centurion.
I’ve been holding my german DC card for almost 20 years now and still love it. Thank you DC!!
I think DC is on the right way.
The MC-connection will make the DC card very attractive for every day purchases and should bring DC a significant number of new cardholders during the next years.
If it‘ll really turn out that way, I am sure DC will enhance ist benefits and perks more and more and will introduce new cards or features, that are very well comparable to other premium cards like Amex platinum or centurion.
I’ve been holding my german DC card for almost 20 years now and still love it. Thank you DC!!
Apr 30, 2004, 8:51 am
#24
Join Date: Apr 1999
Location: Cambridge, MA 02138
Posts: 2,103
This new alliance of DC and MC makes me rethink whether I should get the card.... In the past, I stayed away from it due to two main reasons 1) Lack of merchant acceptance and 2) high annual fee.
What I am currently using is:
a) AmEx Starwood Card - annual fee is only $30.00, and it affectly earns me a gauranteed 1.25 miles/$dollar spent on almost all airlines. (This is due their program of giving you 25,000 miles in an airline program when you transfer 20,000 points)
b) MBNA Amtrak card - for places that don't accept AmEx, I use this no annual fee Mastercard that earns 1 Amtrak point for each dollar charged. This can be converted 1 to 1 to Continental or United Airlines. Yes, there is a yearly limit of 25,000 points that can be transfered to CO or UA, but I never get close to that because the AmEx Starwood card is my main card.
What is making me thing about DC now is that I can use just one card due to it's MasterCard acceptance. And, the promos they sometimes run that give bonus points (like BA or other promos).
What is keeping me away from doing this is the $95 annual fee - this is $65 more than the AmEx Starwood Card. So, I would need to get at least $65 worth of benefits and I can fully switch.
So, if I charge $20,000 on the AmEx card, I would earn 25,000 points on most major airlines. On DC, if I charge $20,000 I would earn 30,000 points on BA, but only 20,000 points on any other airline. (This is assuming they keep running the 1.5 to 1 BA promo in the future).
So, that is an extra 5,000 BA points. If I value a point at $.015/mile, that would be worth $75.00, which is really close to the difference in annual fee. But, of course, I would need to take of $20.00 or so as DC would charge that much to do a transfer to BA, so net is about $55.00. (Starwood does not charge anything to transfer points to their airline partners).
Summary: If I charge $20,000/year or more and I want BA points, then Diners Club is better. Otherwise, it appears that the AmEx Starwood / MBNA option that I have outline above is better.
Yes, I do realize that there may be some other benefits to DC, like the car rental primary coverage and possibly better customer service, but I am strictly viewing this for mileage earning potential. I also do realize that getting two bills from two different companies may not be preferable, but I do electronic bill payment, so it isn't a big deal.
Does anybody see a problem with my calculations above? I've always heard great things about DC, and I am willing to give them a shot, but from my analysis, it still doesn't seem to make sense.
What I am currently using is:
a) AmEx Starwood Card - annual fee is only $30.00, and it affectly earns me a gauranteed 1.25 miles/$dollar spent on almost all airlines. (This is due their program of giving you 25,000 miles in an airline program when you transfer 20,000 points)
b) MBNA Amtrak card - for places that don't accept AmEx, I use this no annual fee Mastercard that earns 1 Amtrak point for each dollar charged. This can be converted 1 to 1 to Continental or United Airlines. Yes, there is a yearly limit of 25,000 points that can be transfered to CO or UA, but I never get close to that because the AmEx Starwood card is my main card.
What is making me thing about DC now is that I can use just one card due to it's MasterCard acceptance. And, the promos they sometimes run that give bonus points (like BA or other promos).
What is keeping me away from doing this is the $95 annual fee - this is $65 more than the AmEx Starwood Card. So, I would need to get at least $65 worth of benefits and I can fully switch.
So, if I charge $20,000 on the AmEx card, I would earn 25,000 points on most major airlines. On DC, if I charge $20,000 I would earn 30,000 points on BA, but only 20,000 points on any other airline. (This is assuming they keep running the 1.5 to 1 BA promo in the future).
So, that is an extra 5,000 BA points. If I value a point at $.015/mile, that would be worth $75.00, which is really close to the difference in annual fee. But, of course, I would need to take of $20.00 or so as DC would charge that much to do a transfer to BA, so net is about $55.00. (Starwood does not charge anything to transfer points to their airline partners).
Summary: If I charge $20,000/year or more and I want BA points, then Diners Club is better. Otherwise, it appears that the AmEx Starwood / MBNA option that I have outline above is better.
Yes, I do realize that there may be some other benefits to DC, like the car rental primary coverage and possibly better customer service, but I am strictly viewing this for mileage earning potential. I also do realize that getting two bills from two different companies may not be preferable, but I do electronic bill payment, so it isn't a big deal.
Does anybody see a problem with my calculations above? I've always heard great things about DC, and I am willing to give them a shot, but from my analysis, it still doesn't seem to make sense.
Last edited by steve100; Apr 30, 2004 at 8:56 am
Apr 30, 2004, 9:23 am
#25
Join Date: Sep 2002
Location: pittsburgh, pa, USA
Programs: lots
Posts: 389
one thing it seems noone has considered...
I'm not sure how this would work... I know that mastercard and visa both charge merchants about 1.57%, and diners charges close to 3%... so i dont know how that would work... they would only get 1.57 on the MC branded diners cards, and I don't think they would be able to continue to provide the same benefits to us.
any ideas?
any ideas?
Apr 30, 2004, 10:35 am
#26
Moderator: Southwest Airlines, Capital One
Join Date: Sep 1999
Location: California
Programs: WN Companion Pass, A-list preferred, Hyatt Globalist; United Club Lietime (sic) Member
Posts: 21,618
As I wrote, I'd be surprised if the current benefits are maintained. At best, I expect half the current value (one CR point per dollar) for everything charged on the MC logo card. Perhaps a selected list of merchants will still offer two CR points per dollar.
Apr 30, 2004, 10:59 am
#27
Join Date: Sep 2001
Location: Connecticut
Programs: AA LT plat; Delta Gold; Marriott LT titanium; Hilton Silver
Posts: 292
Well, if the benefits get reduced, I will drop it. I sure don't need another MasterCard. The biggest reason I keep DC is the primary Rental Car Insurance.
Apr 30, 2004, 11:59 am
#28
Join Date: Jun 2002
Location: San Jose, CA, USA
Programs: UA 1P
Posts: 366
How is going to work technically?
But... how's that going to work technically? MC accounts have 16 digits. Would the "new" Diners Club cards have 16 digits? If so, how will they be used overseas in DC network? 
Why would any merchant sign-up for DC acceptance (with higher fees) if he/she knows the customer could still use the DC/MC card?
The more I think about it, the more questions pop-up
Why would any merchant sign-up for DC acceptance (with higher fees) if he/she knows the customer could still use the DC/MC card?
The more I think about it, the more questions pop-up
May 1, 2004, 1:40 am
#30
FlyerTalk Evangelist
Join Date: Mar 2002
Location: Saipan, MP 96950 USA (Commonwealth of the Northern Mariana Islands = the CNMI)
Programs: UA Silver, Hilton Silver. Life: UA .57 MM, United & Admirals Clubs (spousal), Marriott Platinum
Posts: 15,001
Originally Posted by steve100
Does anybody see a problem with my calculations above? I've always heard great things about DC, and I am willing to give them a shot, but from my analysis, it still doesn't seem to make sense.
If you have a lot of family members whose accounts you top off or keep from expiring (except AA or BA), it makes great sense.