BNZ is moving to a points system for credit card rewards.
Bank of New Zealand credit card users will soon be earning points instead of cash rewards after the bank announced a new loyalty scheme.
From November, customers will earn BNZ points at the same rate they currently accumulate cash rewards – from $1 for every $90 spent to $1 for every $150 spent, depending on the type of card.
The change was announced after rival bank ASB backed down on a plan to significantly increase the amount customers had to spend to earn rewards.
Under the now-canned plan, someone with an ASB Visa Rewards card would have to spend $275 to get one True Rewards dollar, up from $150.
People with a Visa Platinum Rewards card would have to spend $150 instead of $100.
Financial research website Moneyhub has compiled the 12 ‘Sacred Rules’ of credit cards every cardholder should follow, if they don’t want to fall victim to easy, and expensive, consumer debt.
BNZ customer products and services executive Karna Luke said the credit card rewards market had changed over the last few years and some lenders had adjusted earn rates.
“With BNZ Rewards, we are moving beyond points for spending on credit cards, focussing instead on recognising the relationship we have with our customers and providing broader benefits.”
As well as earning points through spending, customers would be rewarded for other activity, like activating their online dashboard, Luke said.
As well as BNZ points, the bank would continue to offer Flybuys as a reward for credit card use.
Points would be redeemable on a range of products and services, including travel and gift vouchers, through BNZ’s online rewards channel. Customers would also be able to take their points as cash at the current rate.
More information on the change would be provided early next month, Luke said.