If business owners want to keep the loyalty points flowing, they will need to rethink their approach to credit card, loyalty card and purchasing activity.
A loyalty-points Armageddon, or “cardmageddon”, is coming to those who are addicted to airline and loyalty points earned from credit card purchases. For years, Australian small-business owners have been using points earning cards to maximise loyalty points and earn rewards. On 1 July 2017, the days of the big points-earning credit card comes to an end.
New RBA rules on bank interchange fees will cap the amount banks can charge merchants for credit-card transactions, dramatically reducing the amount of money banks have to spend on awarding frequent-flier points and miles. Analyst firm Novantas estimate that the value of frequent-flyer points purchases by banks will fall by about 30% from the current $700 million a year. Award amounts will be cut and experts believe the high-earning bank-issued cards will simply disappear.
This means that if business owners want to keep the loyalty points flowing, they will need to rethink their approach to credit card, loyalty card and purchasing activity.
To get more out of your loyalty membership leading up to and post 1 July 2017, here are some suggestions:
The days of easy points earning on a credit cards will soon be over. It’s time to do some research on how your favourite program will be changed and look to alternatives to continue maximising your earning potential.
Timothy Hughes, VP Business Development, Agoda