Tan Kin Lian's Blog: Credit card points

Thursday, March 18, 2010

Credit card points

I called the hotline of my bank to ask how many credit card points is in my account and how much are they worth.

The hotline staff have difficulty in converting the points into the value of the vouchers. She got the value wrong by the factor of 100 times. She told me that my points are worth a lot of dollars, when it really is worth that amount in cents.

If the hotline staff of a bank does not understand the value of a point, how can you expect the ordinary customer to figure out?

Over the years, I have allowed the points on my credit card to expire, as it is really so troublesome to use these points. The customer has to get the voucher, wait for it to arrive in the mail, and make the effort to visit the outlet. The bank also arrange with some outlets to allow instant redemption but finding the customer service desk or a knowledgeable staff may be another hassle.

I suggest that the bank should allow the customer to convert the points into cash, to be added into their account. After all, it is their business to deal with money, rather than with points.

Tan Kin Lian

12 comments:

Anonymous said...: I think Std Chart has a credit card which gives cash rebate. OCBC Robinson and UOB Metro credit cards also give some % off the total bill charged.; March 18, 2010 8:23 AM
Anonymous said...: Mr Tan,

The point system is just a marketting ploy. The best way to avoid leakage through expiring points is to use a credit card to rebates cash. The conversion rate might be lower than getting points but it's easy to use/redeem so zero leakage.

There are at least 2 cards with this feature.; March 18, 2010 8:59 AM
Anonymous said...: From my experience, not all credit cards give you the same benefit from point system, i.e. you have to spend more to exchange the same voucher. Some banks cut back and become less generous over time, so you must compare from time to time. If you don't have time to do this, you better stick to a credit card which gives cash rebate.; March 18, 2010 9:59 AM
Anonymous said...: My debit card with UOB used to be able to convert points with my spending & the subscription come free. 2 years ago, they introduced a new card to replaced the old one & ceased this promotion. In Jan this year, they sent me a statement citing that if I do not spend up to a certain amount, I will have to pay for subscription charges. I was so pissed that I closed my account with UOB last month.; March 18, 2010 10:51 AM
Chrisloup said...: its quite simple.

don't support any banks/cards with point systems.

I'm currently keeping
hsbc - ONLY for the GV movie discount and the fact that its tied to my house mortgage.

uob-singtel - cashback to offset my phone bill

rbs-switch+ platinum - supposed to be no transaction fee for overseas cash withdrawal from atm.

uob-privi - seldom used, supposed for coldstorage/jasons but I dont supershop regularly to make their monthly rebate amount... might dump it.

citibank-smrt, posb everyday - used to have it, dropped it simply because of the hassle to write in to reduce credit card limit prior to the banks's decision to adjust the personal liability portion for lost/fraudulent transactions
(and dbs/posb for that nonsense with josie lau viz FOTF/aware); March 18, 2010 12:55 PM
Anonymous said...: Everything are getting more complicated in this moldern world. Just don't understand why can't everything be made SIMPLE.

I stop using CC with all the complicated reward point system. I now use CC that give direct cash rebate.

SIMPLE is beauty... so keep thing SIMPLE.; March 18, 2010 4:49 PM
Anonymous said...: For me, it's easy once you get the hang of it. I used to get baffled, but after a while and some experience I know how to convert without much pain.
In general, expect to earn a total reward of 1% to 2% of what you spend.; March 18, 2010 5:08 PM
Anonymous said...: rex comments as follows,

Actually i am quite happy with the credit card system with UOB which i had been using since 1981.
The uob card points system is simple to use. Usually by year end, i would have accumulated several thousand points. I go to the website and choose what i want, it is almost always MAKAN vouchers! Crystal Jade Restaurant, is one of my favourites. There are also several other great restaurants on the list. I could easily get about $70 to $100 worth to treat my family. I just do a few clicks on the website and in two days time, the voucher arrives in my mailbox, i find it delightful. I also reserve several hundred points to use as the card subsrciption deductions. I have not paid a cent for the credit card since 1981.

rex; March 18, 2010 9:38 PM
Anonymous said...: Citibank has recently come up with "instant rewards" which is basically points you can redeem immediately at certain merchants.

Just like how their Tangs card can give rebates at Tangs store, just that they expand this idea to other participating merchants.

This way there is no need to choose your rewards and wait for it in the mail.

I just wish they would expand the merchant list quickly!; March 19, 2010 3:41 PM
Jen said...: I totally love the points/rewards system, especially Amex 10x + 10x

I chalked up points very quickly and because the points don't expire, I even 'save up' for big ticket item like air tickets!; March 19, 2010 6:06 PM
Stacy said...: Many of our credit card points are insufficient and will just be forfeited on the expiry date. I'd wish banks can provide an avenue for all customers to donate their points (esp those un-used) , accumulate them and give an equivalent $ to charity. That will be excellent.; March 21, 2010 8:38 PM
SyedMuddassar said...: Credit card is especially important if you are in desperate need of money. Most businesses and banks to take a month to approve an application for a credit card.
Plastic Card.; April 04, 2011 6:23 PM