CBA 'platinum' debit mastercard

[luce.rocks]

Got a new CBA debit mastercard in the mail today along with a letter and pamphlet extolling the virtues of switching over to this new card and abandoning my old one (which is not due to expire).

I know banks would never do anything that didn't make them money, so what are they getting out of it? Or rather, how will it likely cost me more? Higher merchant fees? Things not clearing straight away, then clearing all at once the day before pay day, resulting in over drawn fees? I can't think of anything else, but I know you don't get something for nothing, especially from banks.

 

[Truly Exotic]

is it replacing an existing debit master card or a credit card?

the merchant fees for debit and credit are different,

whereas generally credit cards are % based and Debit cards being fixed fee based

When I had my facility, more people used credit cards, but I never got around to calculating which is more cost effective

 

[Kinnon Bell]

It's all about the interchange fees (aka merchant fees). Whilst debit % is lower, for the majority of transactions, it is not fixed and the fixed amount is just about the same for debit and credit. Visa link to interchange fees.

With the introduction of premium and super premium the banks get a higher interchange rate which they make a lot of their money out of hence the platinum, black et al flooding the market the last few years.

Added tidbit of information... the RBA has it under 'control' by setting the interchange cost base measure where every 3 years banks' interchange rates have to be averaged out and measured against the previous year as a percentage of transaction volumes. They have a target they need to adhere to within a few points.

 

[Brady]

Got a new CBA debit mastercard in the mail today along with a letter and pamphlet extolling the virtues of switching over to this new card and abandoning my old one (which is not due to expire).

I know banks would never do anything that didn't make them money, so what are they getting out of it? Or rather, how will it likely cost me more? Higher merchant fees? Things not clearing straight away, then clearing all at once the day before pay day, resulting in over drawn fees? I can't think of anything else, but I know you don't get something for nothing, especially from banks.

It's something for nothing that not all customers are entitled to, you can't opt for one you are offered one.

 

[monalisa]

I also got these in the mail recently. I haven't activated mine yet. Don't understand whether its worthwhile.

 

[monalisa]

It's something for nothing that not all customers are entitled to, you can't opt for one you are offered one.

How do they decide who to offer?

 

[Kinnon Bell]

It's something for nothing that not all customers are entitled to, you can't opt for one you are offered one.

Spoken like a true banker

Give it a few months and they'll offer it to their whole book of customers.

I also got these in the mail recently. I haven't activated mine yet. Don't understand whether its worthwhile.

Sometimes the premium cards come with extra insurances like purchase protection, travel insurance, that kind of thing. Not sure if it's included on the debit cards though.

 

[Brady]

Spoken like a true banker

Give it a few months and they'll offer it to their whole book of customers.



Sometimes the premium cards come with extra insurances like purchase protection, travel insurance, that kind of thing. Not sure if it's included on the debit cards though.

Spoken like a true banker who can't even get one himself

Comes with shopping insurance and I believe concierge service, but not the travel insurance just the credit cards.

I haven't looked into it too much as I cant offer it to clients

 

[luce.rocks]

is it replacing an existing debit master card or a credit card?

the merchant fees for debit and credit are different,

whereas generally credit cards are % based and Debit cards being fixed fee based

When I had my facility, more people used credit cards, but I never got around to calculating which is more cost effective

It's a debit mastercard replacing another debit mastercard. They're selling it as having 'platinum' privileges, e.g. concierge service, warranties, insurance etc.

 

[luce.rocks]

So Kesse, I found some info on rates on the mastercard.com.au site. The 'consumer premium debit' fee is 1%. Do you have any idea if that is on top of other fees, or in place of? E.g., if I bought 'petroleum' (fee 7.7 cents) via PayPass (fee 5.5 cents), using my premium consumer card (1%) would I pay all the fees or just the 1%?


DEBIT MASTERCARD POS TRANSACTION

Interchange Category Name Priority Interchange Fee inc
GST
Charities 1 0.00%
Micropayment (≤ AUD 15) 2 $0.004
Strategic Merchants1 3 $0.035
Strategic Merchants2 4 $0.040
PayPass (≤ AUD 60) 5 $0.055
Government and Utilities 6 $0.077
Petroleum 6 $0.077
Recurring Payments 7 $0.110
Quick Payment Service 8 $0.066
SecureCode Merchant UCAF 9 $0.088
SecureCode Full UCAF 10 $0.110
Commercial ? Debit 11 1.00%
Consumer Premium ? Debit 12 1.00%
Consumer Electronic ? Debit 13 $0.100
Consumer Standard ? Debit 14 $0.174
Purchase with Cash Back N/A ($0.175)

 

[westminster]

So Kesse, I found some info on rates on the mastercard.com.au site. The 'consumer premium debit' fee is 1%. Do you have any idea if that is on top of other fees, or in place of? E.g., if I bought 'petroleum' (fee 7.7 cents) via PayPass (fee 5.5 cents), using my premium consumer card (1%) would I pay all the fees or just the 1%?


DEBIT MASTERCARD POS TRANSACTION

Interchange Category Name Priority Interchange Fee inc
GST
Charities 1 0.00%
Micropayment (≤ AUD 15) 2 $0.004
Strategic Merchants1 3 $0.035
Strategic Merchants2 4 $0.040
PayPass (≤ AUD 60) 5 $0.055
Government and Utilities 6 $0.077
Petroleum 6 $0.077
Recurring Payments 7 $0.110
Quick Payment Service 8 $0.066
SecureCode Merchant UCAF 9 $0.088
SecureCode Full UCAF 10 $0.110
Commercial ? Debit 11 1.00%
Consumer Premium ? Debit 12 1.00%
Consumer Electronic ? Debit 13 $0.100
Consumer Standard ? Debit 14 $0.174
Purchase with Cash Back N/A ($0.175)

Those are all fees for the retailer not you.

The only likely things to watch out for
- is the annual fee higher than your old one?
- are the penalty fees higher than your old one? ie payment not made fee.

Other wise enjoy some of the new perks
- possible higher point accrual if it's linked to a FF, Qantas etc
- insurance (travel, goods, extended warranties)

 

[Kinnon Bell]

To reiterate what Westminster said it's not fees that are incurred by you. It's something the merchant has to pay.

 

[luce.rocks]

Thanks folks. Okee dokee. I guess even if I find a bunch of hidden fees later I can always cancel it and ask for a normal card again

 

[DaveM]

Main reason for a platinum card is so you can snoot your nose even higher than before when dangling it loftily in front of the checkout operator at coles, and everyone will be so impressed and amazed at how successful you are and want to sleep with you

 

[D.T.]

Main reason for a platinum card is so you can snoot your nose even higher than before when dangling it loftily in front of the checkout operator at coles, and everyone will be so impressed and amazed at how successful you are and want to sleep with you

Oh so thats why thats happening. I need to go downgrade mine.

 

[luce.rocks]

Main reason for a platinum card is so you can snoot your nose even higher than before when dangling it loftily in front of the checkout operator at coles, and everyone will be so impressed and amazed at how successful you are and want to sleep with you

Well then they've sent it to the wrong people. Hubby is a lowly hospitality worker and I'm a stay at home mum. We get by, but we sure don't have anything to be snooty about.

 

[westminster]

Well then they've sent it to the wrong people. Hubby is a lowly hospitality worker and I'm a stay at home mum. We get by, but we sure don't have anything to be snooty about.

aka wine bar entrepreneur and offsite business parter

 

[luce.rocks]

aka wine bar entrepreneur and offsite business parter

You're awesome

 

[twobobsworth]

Today I received an offer from cba to get their diamond card, wonder what they'll call their next one???

 

[sash]

If you want to avoid fees overseas on a credit card use the 28 Degrees card.

Their exchange rates are virtually the same as the daily rate in the newspapers and they don't charge transaction fees. Also no annual fees. I use this as my travel credit card.

I have CBA Diamond Card overseas fees are atrocious buy part of my package fees. I use this within Australia to rack up points as I get 3 point per dollar on Amex spend and 2 per Mastercard spend. The travel insurance is pretty ordinary...and not particularly excited about the Conceirge service. If you want service you will need the Centurion Black Amex card which is invitation only...

So Kesse, I found some info on rates on the mastercard.com.au site. The 'consumer premium debit' fee is 1%. Do you have any idea if that is on top of other fees, or in place of? E.g., if I bought 'petroleum' (fee 7.7 cents) via PayPass (fee 5.5 cents), using my premium consumer card (1%) would I pay all the fees or just the 1%?


DEBIT MASTERCARD POS TRANSACTION

Interchange Category Name Priority Interchange Fee inc
GST
Charities 1 0.00%
Micropayment (≤ AUD 15) 2 $0.004
Strategic Merchants1 3 $0.035
Strategic Merchants2 4 $0.040
PayPass (≤ AUD 60) 5 $0.055
Government and Utilities 6 $0.077
Petroleum 6 $0.077
Recurring Payments 7 $0.110
Quick Payment Service 8 $0.066
SecureCode Merchant UCAF 9 $0.088
SecureCode Full UCAF 10 $0.110
Commercial ? Debit 11 1.00%
Consumer Premium ? Debit 12 1.00%
Consumer Electronic ? Debit 13 $0.100
Consumer Standard ? Debit 14 $0.174
Purchase with Cash Back N/A ($0.175)