ASB to reduce value of its credit card rewards schemes

ASB charges 20.95% interest on debts owing on its ASB Visa Rewards card

Kirk Hargreaves / Stuff

ASB charges 20.95% interest on debts owing on its ASB Visa Rewards card

ASB will downgrade its credit card rewards scheme early next month.

The bank’s credit card rewards scheme allows cardholders to earn either AA Smartfuel discounts, or ASB True Rewards points.

The True Rewards points can then be spent at stores including Farmers, Noel Leeming, Pascoes and Rebel Sport, but they can also be used to top up ASB KiwiSaver accounts, or to make donations to charities.

Each True Rewards point is worth one New Zealand dollar, but ASB has posted a notice on its website announcing changes that mean people will have to spend more to earn each point, and each extra cent off the pump price of petrol.

READ MORE:
* I have 26 credit cards and I don’t make these mistakes with my rewards
* Here’s how to get the most from rewards schemes
* Shoppers told to ‘game the system’ to maximise loyalty points

The bank has also emailed customers to tell them about the change.

Currently, someone with an ASB Visa Rewards card earns one True Reward dollar for every $ 150 they spend on their card.

That will change on October 4 to one True Reward dollar for every $ 275 they spend on their card.

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.

People carrying ASB’s Visa Platinum Rewards card will have to spend $ 170 to earn each True Rewards dollar, up from $ 100.

In order to earn one cent off the pump price of petrol with AA Smartfuel discounts, someone with an ASB Visa Rewards card will have to spend $ 100 on their card after October 4, up from $ 75.

The move comes just a month after ASB reported a profit after tax of $ 1.42 billionFor the 12 months to the end of June, up from $ 1.29b in its last full financial year.

ASB charges 20.95% interest on debts owing on its ASB Visa Rewards card, and 19.95% on its Platinum Visa Rewards card, which is targetted at higher spenders.

The bank has been contacted for comment.