ASB will reduce the value of its credit card rewards programs

ASB will be downgrading its credit card rewards program early next month.

The bank’s credit card rewards program allows cardholders to earn either AA Smartfuel rebates or ASB True Rewards points.

True Rewards points can then be spent at stores such as Farmers, Noel Leeming, Pascoes and Rebel Sport, but can also be used to top up ASB KiwiSaver accounts or donate to charity.

Each True Rewards point is worth one New Zealand dollar, but ASB has posted a notice on its website announcing changes that mean people will have to spend more to earn each point, and every extra penny on the pump price of the essence.

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The bank also sent an email to its customers notifying them of the change.

Currently, someone with an ASB Visa Rewards card earns one True Reward dollar for every $150 they spend on their card.

This will increase on October 4 to one True Reward dollar for every $275 spent on their card.

Holders of ASB’s Visa Platinum Rewards card will need to spend $170 to earn every True Rewards dollar, up from $100 previously.

In order to earn a penny off the pump price of gas with AA Smartfuel rebates, someone with an ASB Visa Rewards card will need to spend $100 on their card after October 4, up from $75 before.

The move comes just a month after ASB reported after-tax profit of $1.42 billion for the 12 months to the end of June, up from $1.29 billion in its last full financial year.

ASB charges 20.95% interest on debts due on its ASB Visa Rewards card and 19.95% on its Platinum Visa Rewards card, which caters to the high spenders.

The bank has been contacted for comment.