The high-end credit card universe got a little more crowded and confusing in March following the release by three of Canada’s Big Five banks of their versions of VISA’s new infinite credit card.
First out of the gate was CIBC, touting its CIBC Aerogold VISA infinite card’s “additional purchasing power and exclusive features.” It was soon followed by Royal Bank of Canada, which called its version “the most prestigious VISA card in Canada.” Last to launch, but not to be outdone, was TD Bank Financial Group’s TD First Class Travel VISA infinite card, which was pitched as “the first VISA infinite card of its kind to offer cardholders ‘book any way’ flexibility, valuable travel insurance and prestigious travel services.”
VISA’s infinite salvo is just the latest effort in financial firms’ long-running loyalty and rewards arms race. Firms put in the effort because Canadians are avid collectors of points and miles.
On average, each of us belongs to 2.5 retail rewards programs and two financial rewards programs; as well, 86% of Canadians admit to being members in some sort of loyalty/rewards program, according to a study released by COLLOQUY Research.
So, for VISA, it makes sense to pitch its new infinite product aimed squarely at high-spending, frequent travellers with household incomes in excess of $100,000 who expect something extra for all that quality time spent hanging around airport lounges. As well, the new VISA could, perhaps, hive off a bit of market share from credit card rival American Express.
“[Infinite] is addressing that need of that top end, that higher spender profile who is looking for these kinds of benefits,” says Ernie Johannson, senior vice president of marketing at CIBC. She expects that the launch of the new travel-oriented card will attract new customers to the bank: “That is part of our objective, but our first and primary objective is to satisfy our current clients’ needs.” As such, all current Aerogold and Aventura card members will be offered the infinite VISA, she adds.
CIBC’s Aerogold-tied infinite card offers added perks such as travel medical insurance and trip interruption insurance at the same annual fee as that of its Aerogold card and builds on last year’s additions to the latter, such as new fraud prevention; it also increases the points collected to 1.5 miles earned for every dollar spent. “We launched that 1.5 multiplier because we thought our clients would enjoy it and we have seen great take-up,” Johannson say.
RBC’s “most prestigious Visa card in Canada” offers many Amex-like perks that include personalized servicing, customized rewards, travel assistance, concierge service, worldwide airport lounge access, premium insurances, and access to ultra exclusive events and experiences. The bank says its card will be offered by invitation only to high net-worth clients.
TD’s First Class Travel VISA infinite card allows users to book trips any way they want without having to deal solely with travel rewards programs. Users can book online or with any travel agent, making it easier “for cardholders to get the trip they really want,” the bank says. The card includes trip cancellation and interruption insurance, concierge assistance, VIP treatment at the world’s top hotels and resorts, the bank adds.
So, will Canadians — their wallets already bulging with credit and loyalty cards — take the time to consider and compare the newest high net-worth card? Johannson thinks so: “A lot of Canadians are value-oriented, do their research and look for good cards.” IE
Banks launch high net-worth cards
CIBC, Royal Bank of Canada and TD Bank get a piece of the action
- By: Paul Brent
- March 31, 2008 March 31, 2008
- 09:44