KEY POINTS:
Some ASB Bank customers are fuming over changes to a credit-card programme that in some cases will mean they have to spend more to earn rewards.
The bank is changing its True Rewards programme from a points system to a dollar system similar to the one operated by
Air New Zealand for its frequent flyers.
The bank says the new dollar system is simpler and more transparent than the points system, but for many cardholders, the dollars will be worth much less than the points they now earn.
Customers in the True Rewards programme earn one point for every dollar spent on a standard ASB credit card.
Gold cardholders also earn bonus points for purchases overseas.
But the system will change on October 24, and standard cardholders will need to spend $150 to gain one True Rewards dollar, and gold cardholders, $130.
At present, spending $7100 earns a standard True Rewards customer 7100 points, with a redeemable value of $60.
But after October 24, that $7100 will earn only $47.33 worth of True Rewards dollars.
Gold cardholders spending more and converting credit-card rewards into airpoints will do better under the new system.
For example, spending $10,500 is currently redeemable for 70 airpoints dollars, but will be 80.77 airpoints dollars under the new system.
The amount will stay the same - 70 airpoints dollars - for standard cardholders.
ASB chief manager cards Rob Campbell said there would be some reduction in value for customers who usually redeemed their points for $20 or $60 vouchers.
But he said others would be better off, and a major advantage of the new system was that cardholders could redeem their True Rewards dollars for goods at point of sale.
Currently, they must redeem their points for specified goods, such as cinema passes and grocery vouchers, at participating retailers.
"It's absolutely more flexible and an additional channel in terms of that instantaneous reward," Mr Campbell said.
But one disappointed customer said the changes to the loyalty programme were making her consider giving up her ASB credit card and getting one with another bank.
The 45-year-old office manager said she had been with True Rewards since its inception in 1998 and redeemed the points she earned on grocery, music and Farmers vouchers.
"That's one thing I liked about it - the flexibility - but there's only so much a person can spend."
She said fees to subscribe to True Rewards coupled with the prospect of having to spend more to earn rewards would make her look at what other banks had to offer.
The ASB is in the process of informing its 230,000 True Rewards customers of the changes.
It began sending letters to them on August 6 and will continue until the end of the month.
Mr Campbell said so far there had been little feedback.
Diminishing returns
Now: Spend $7100, earn points with redeemable value of $60.
After October 24: Spend $7100, earn $47.33 of True Rewards dollars.
* Applies to standard credit card. Gold cardholders will earn more.
