quinella66

This merger certainly makes DC a better product, though I do not think I will go back. I had the card 5 years ago I probably only was able to use it for 25% of charges. Funny that while in Chile, it was accepted almost anywhere, but here in the US I could hardly expect to be able to use it for any daily expense except gasoline.

Definately the upped annual fee and the fees for converting to miles were not welcome additions.

Eventually I switched to the SPG Amex and have not looked back. In fact, even though I can convert to airline miles, I end up using points for hotels instead most of the time since not only are they a better value, but SPG does not have the stupid capacity controls that make reward redemption an exercise in frustration.

Although this change does make the DC a significantly more valuable card, I doubt I would switch to DC, even with this change, as the SPG points are more valuable and the annual fee is less.

... and about the rental car insurance? My own auto insurance provides that so I would not be paying for it anyway.

TTT103

It's been a number of years since I had a DC; however, I was wondering if the primary auto coverage also covers liability should one get into an accident that causes damage not only to the rental car, but to another vehicle? In other words, if I rent a car and back into another vehicle in a parking lot, would the primary coverage apply to both vehicles, or just my rental car?

TRRed

^ ^ ^

Official Press Release: http://www.dinersclubnewsroom.com/vi...ase.cfm?id=190


See Webflyer article below for commentary.
http://www.webflyer.com/programs/not...hp?art_num=200


Now, if we can just get DC to pick up some purchase security and warranty protection, almost everything can be covered by one card.

GeorgeF

If I understand this correctly - Diners will become a MasterCard.

... so watch out while overseas. Do not look for DC signage because it's a MC in your wallet.

nsx

Both.

TTT103

Outstanding!

nsx

Now that I think about it, it may be that your rental agreement includes coverage for the other guy's car, and that DC only needs to cover the rental car to complete the picture. Regardless of who covers what, I am certain that there is no need to involve your insurance company. Nobody even asked me for that information.

TRRed

I read the announcement and prior discussion somewhat differently. As I read it, DC cards will have the MC logo added to the cards, so that in addition to anyplace DC is currently accepted, it will also be accepted in places which do not accept currentlty DC but do accept MC. To me, the concern with DC and this arrangement is that merchants currently signed up with both DC and MC may drop DC if the MC charges are lower (even though all DC's worldwide may not bare the MC logo for some time, if ever).

chalf

This is essentially my reading as well. This announcement could solve a major mileage dilemma for me. As I will soon be spending a large amount of time in a country for which I am unlikely to have or be able to obtain a local currency credit card, I was debating between SPG Amex and Amex Plat IDC, with a low currency surcharge Visa/MC as backup. Now it appears that I could get away with a combination of the SPG Amex and "new" DC (acting as a MC), which would give me a great combination of points/benefits and acceptability. The airport I will use most frequently for non-business travel even has a lounge that is linked to DC.

OT, but is DC still a 2% foreign currency surcharge (on US$ cards)?

GeorgeF

Last time I checked, yes, 2% it is.

747heavy

Are all DC cards merging with MC? Even DC cards based outside the US? Or are they completely independent?

Thanks.

yg_miles

The primary deal here is between Citibank (the US and Canada Diner's Club International licensee) and Master Card. All US/CA DC cards will become MasterCards. International licensees (non-US/CA) have the option to put a MC logo on the back of their cards and have it accepted in the US as a MasterCard. While this is not said explicitly, it would be logical to guess that DC will disappear as an independent payment marque in North America. The main point that I am not clear on is whether or not the US DC/Citi Mastercard will be accpeted at an international location that accepts DC, but not MasterCard (I am not sure how many such places exist?).

gleff

My worry is that this will mean lower interchange fees paid by merchants accepting M/C but not Diners.

Those fees fund Club Rewards, and Diners Club could well want to cut costs in their rewards program.

Now, I don't KNOW that lower fees are involved. I suppose it's POSSIBLE that Diners Club cards will yield the higher interchange fee, even to Mastercard merchants, but I find that a bit unlikely (forcing all MC merchants to pay a higher fee than they had signed up for).

Worrying about lower fees and what that will do to my points...

ejmelton

Gleff, you paint a plausible picture. OTOH, the increased number of transactions versus no significant increase in operating costs (once all of those new cards are issued) might well make up for the reduced margin per transaction. (Yes, this might be an example of "making it up on volume".)

While I expect any program such as this to be devalued over time (it just seems to be the way things are), I don't anticipate major changes. After all, Citi could have just dropped Diners and mailed each of us a "super tintanium" MC. Citi sees some value in the Diners franchise and is trying to grow it. THat bolds well for us.

GeorgeF

No worries. The charges are already high enough to fund it.

I've also heard somewhere that merchants pay higher fees for transactions made with VISA Signature and MC World Cards. Much more (almost as AmEx). I suppose the DC charge card will be put into that category.

Anther thing to remember - we are paying for those points. It's not the merchants who pay the fees, they pass it to us - the customers.

Anyway, I'm looking forward to the Diners Club flavored MasterCard in my wallet.