BNZ moves to points system for credit card rewards

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BNZ is moving to a points system for credit card rewards.

Nate McKinnon/RNZ

BNZ is moving to a points system for credit card rewards.

Bank of New Zealand credit card users will soon earn points instead of cash rewards after the bank announced a new loyalty program.

From November, customers will earn BNZ Points at the same rate they currently earn cash rewards – from $1 for every $90 spent to $1 for every $150 spent, depending on card type.

The change was announced after rival bank ASB backed out of a plan to dramatically 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 previously.

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People with a Visa Platinum Rewards card should spend $150 instead of $100.

Financial research website Moneyhub has compiled 12 credit card “sacred rules” that every cardholder should follow, if they don’t want to fall victim to easy and costly consumer debt.

Karna Luke, head of product and customer services at BNZ, said the credit card rewards market had changed over the past few years and some lenders had adjusted charge rates.

“With BNZ Rewards, we are going beyond points to spend on credit cards, instead focusing on recognizing the relationship we have with our customers and providing broader benefits.”

In addition to earning points for spending, customers would be rewarded for other activities, such as activating their online dashboard, Luke said.

In addition to BNZ points, the bank would continue to offer Flybuys as a reward for using the credit card.

The points would be redeemable for a range of products and services, including travel and gift vouchers, through BNZ’s online rewards channel. Customers could also withdraw their points in cash at the current rate.

More information on the change will be provided early next month, Luke said.

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