Changes to ANZ co-branded credit card programs
Fri 01 Nov 2002
Published: Tue 05 Nov 2002 11:24:32
Document No: 197307
Document part: A
Market Flag: N
AUSTRALIA AND NEW ZEALAND BANKING GROUP 2002-11-01 ASX-SIGNAL-G HOMEX - Melbourne +++++++++++++++++++++++++ MEDIA RELEASE CHANGES TO ANZ CO-BRANDED CREDIT CARD PROGRAMS ANZ today announced changes to its co-branded credit card programs following significant increases in the costs of running the programs including the cost of providing rewards. Effective 3 December 2002 for the Qantas ANZ Visa Card and 12 December 2002 for the Telstra Visa Card, the following changes to fees will be made: * Qantas ANZ Visa Card - the Annual Fee will increase from $27 to $40 ($67 to $95 for Gold Cards) per account. The annual Rewards Program Fee will increase from $33 per account to $55 per card, and will now apply to each additional card on an account. * Telstra Visa Card - the Annual Fee will increase from $19 to $26 per account; and the annual Rewards Program Fee will increase from $11 to $22 per account. Fee waivers based on annual spend will be removed following the cardholder's next anniversary date. The fee increases reflect increased program costs including the cost of providing rewards and of undertaking the administration of the programs. The costs of both co-branded programs are primarily borne by ANZ. The changes are not related to credit card scheme reforms announced recently by the Reserve Bank of Australia. ANZ Managing Director Consumer Finance Mr Brian Hartzer said ANZ faced very difficult choices about fees and the cost of providing rewards. "Our dilemma is that the cost of running reward programs has risen to the point where these programs are not sustainable in their current form. We were faced with a decision to either significantly change the programs or keep them operating in their current form and pass on some of the increased costs, " he said. "Given the popularity of the programs, and after customer research, we decided to pass on some of the costs through increased fees but to continue to provide the current level of rewards. "We know this may be difficult for some customers so we are providing all customers with the option of moving, at no cost, to another ANZ credit card which has lower fees. "We are acutely conscious of the concern about fees, however the Qantas ANZ Visa Card and Telstra Visa Card still represent good value for customers who want rewards. These changes are not retrospective and the rate at which cardholders earn points has not changed. And, with the largest network of Bonus Partners, the Qantas ANZ Visa Card is still one of the fastest ways to earn Qantas Frequent Flyer points," he said. All Qantas ANZ Visa Card and Telstra Visa Card customers will receive a personal letter with details of the changes. For media enquiries contact: Paul Edwards HEAD OF GROUP MEDIA RELATIONS Tel: 03-9273 6955 or 0409-655 550 Email: email@example.com A copy of the full announcement, including Background Information is available for purchase from ASX Customer Service on 1 300 300 279.