Important changes to the Commonwealth Awards Program and to your credit card contract

Transcription

1 Important changes to the Commonwealth Awards Program and to your credit card contract Changes to the Commonwealth Awards Program Changes to the Commonwealth Awards Terms & Conditions Changes to your Credit Card Conditions of Use and Schedule Changes to credit card product benefits Tips on how to keep your money safe

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3 Contents Page Changes to the Commonwealth Awards program 2 Changes to your Credit Card Conditions of Use and Schedule 4 Changes to the Commonwealth Awards Program General Terms & Conditions 12 Changes to Commonwealth Awards Partner Terms & Conditions 17 Changes to credit card product benefits 19 Tips on how to keep your credit cards safe 20 1

4 Changes to the Commonwealth Awards program We are making a number of changes to the Commonwealth Awards program. This is part of a restructure of the program in order to introduce new Commonwealth Bank American Express credit cards alongside existing Commonwealth Bank MasterCard and Visa credit cards. From 23rd October 2009 existing Platinum Awards, Gold Awards and Awards credit card account holders can request to be re-issued with a new Commonwealth Bank American Express credit card as well as a new-look Commonwealth Bank MasterCard or Visa credit card. With the new Commonwealth Bank American Express credit card you ll be able to earn Commonwealth Awards points faster (see below). Commonwealth Awards points earned per dollar spent From 23 Oct 2009 From 23 Oct 2009 American Express MasterCard /Visa Platinum Awards 3 points 1 point Gold Awards 2 points 1 point Awards 1.5 points 1 point Even though each cardholder will have two credit cards, they ll still only have: one credit card account one monthly statement (with one monthly payment) one credit limit (accessible with both cards) one annual fee for both credit cards (the $15 annual fee for additional cardholders remains the same) Interest rates for purchases and cash advances remain unchanged. 2

5 Changes to Qantas Frequent Flyer points and Velocity Points There are also changes to the transfer rates for Qantas Frequent Flyer points and Velocity Points. These are detailed later in this booklet (pages 17 & 18). If you are enrolled in Qantas Frequent Flyer Direct or transfer points to Velocity Rewards, here s an example of how many Qantas Frequent Flyer points or Velocity Points you will earn on $1,000 of eligible spend using either your American Express or MasterCard /Visa card before and after 1 February Qantas Frequent Flyer points or Velocity Points transferred for $1,000 spend: Before 1 Feb 2010 spend on MasterCard / Visa From 1 Feb 2010 spend on American Express From 1 Feb 2010 spend on MasterCard / Visa Platinum Awards 1,000 pts 1,500 pts 500 pts Gold Awards 666 pts 1,000 pts 500 pts Awards 500 pts 750 pts 500 pts 3

6 Changes to your Credit Card Conditions of Use and Schedule The following changes to your credit card Conditions of Use and Schedule are effective 23 October You should keep a copy of this notice as a record of these changes. You can download the revised Conditions of Use at commbank.com.au/creditcards or call to have a copy sent to you. 4

7 Part One Major Changes to the Conditions of Use Direct charging by non-commonwealth Bank ATM owners We have made changes to make it clear that non-commonwealth Bank ATM owners may charge a fee when you obtain a cash advance or make a balance enquiry with your Commonwealth Bank credit card. In Condition 9, add a new final paragraph: If you obtain a cash advance or make a balance enquiry at a non-commonwealth Bank ATM in Australia, the ATM owner may charge a fee. The fee will be disclosed at the time of the transaction and if you proceed, will be debited to your account. And in the definition of cash advance, change first dot point to: ATM withdrawals (including any fee charged by the ATM owner);. Regular payment arrangements We have changed all references to recurring transactions to regular payment arrangements. We have also made it clear that you need to make alternative arrangements for your regular payment arrangements if your card account number changes or your card expires. In the third paragraph of Condition 17, insert and keep a copy of that request at the end of the first sentence. At the end of Condition 17, add two paragraphs: When your card expires, or if we provide you with a new card number (e.g. when your card is lost or stolen), you should provide the updated details to your merchant to make sure the regular payment arrangement continues without interruption. Otherwise, we may reject a transaction request and the merchant may stop providing the goods or services. Similarly, if you decide to close your card account or we close your account, make sure you make other arrangements with your merchant for payment to avoid the cancellation of goods or services being provided. 5

8 Part One Major changes to the Conditions of Use American Express cards As mentioned earlier in this brochure, we plan to introduce American Express cards shortly. To cater for this, we have made the following changes. The definition of card scheme now includes American Express International. Replace Condition 1 with: These Conditions of Use govern the use of the Commonwealth Bank credit cards we issue to you (including MasterCard, Visa and American Express branded cards). Change the first sentence of Condition 3 to: If we issue you more than one card on your card account (e.g. a MasterCard and an American Express card), any card can be used to access credit on your card account. In Condition 4, add after the first sentence: If your card account comes with more than one card, we will issue the same number of cards to the additional cardholder and replace both cards in the last bullet point with all cards on the card account (including your cards). In the first paragraph of Condition 9, delete the words: MasterCard or Visa. In Condition 10, final paragraph, replace MasterCard or Visa with the relevant card scheme. In Condition 11, amend the last line of the third paragraph to read: which display the relevant card scheme s symbol. In Condition 14, add a new final paragraph: Remember, one credit limit applies to your card account, regardless of how many cards we issue on your card account. In Condition 19, replace the paragraph headed Foreign currency conversions by the card schemes with the following paragraphs: Each card scheme has its own method of converting foreign currency into Australian dollars. Foreign currency conversions by MasterCard and American Express A charge that is made in foreign currency other than United States dollars will, when conversion is done by 6

9 MasterCard or American Express, be converted into United States dollars before being converted into Australian dollars. Foreign currency conversions by Visa A charge that is made in United States dollars, Canadian dollars, New Zealand dollars, Singapore dollars, pounds sterling, euros or Japanese yen will, when conversion is done by Visa, be converted directly into Australian dollars. A charge that is made in any other foreign currency will, when conversion is done, be converted into United States dollars before being converted into Australian dollars. Exchange rates are set by the card schemes and can fluctuate until the time we debit your card account with the amount of the transaction converted into Australian dollars. Also, add in a new final paragraph at the end of Condition 19: We charge international transaction fees on all currency conversion transactions as set out in your Schedule. For foreign currency conversions by the card schemes, our international transaction fee includes the fees charged to us by the card schemes (which are also disclosed in the Schedule). In Condition 27 in the section on emergency hotline numbers, add American Express Call or (reverse charges accepted). In Condition 44, replace the last two bullet points with: we may receive commissions from each of the card schemes for use of cards with their branding. When we can change your loan contract We have amended Condition 32 to make it clearer when we can vary the contract, to make the notice periods consistent and to clarify your rights if you do not agree with certain changes. 7

10 Part One Major changes to the Conditions of Use In Condition 32, replace the first paragraph with: We may at any time: change the annual percentage rate, a reference interest rate or a margin; change the amount and frequency of payment of credit fees and charges; impose a new credit fee or charge; reduce your credit limit or change your cash advance credit limit (if applicable); change the type of card you have (including to a different product type or card scheme); and vary any other of these Conditions of Use (e.g. as a part of introducing new services or products, making changes in technology or processes, or bringing us in line with market practices, regulatory requirements or customer demands). In the 2nd paragraph, first bullet point change (or a reference interest rate) to (including a reference interest rate or margin). Delete the 2nd, 3rd and 4th bullet points. In the 5th bullet point, change 30 days to 20 days. Replace the 6th bullet point with: at least 20 days written notice of any other changes to these Conditions of Use (other than changes which reduce your obligations or extend the time for payment). In the 4th paragraph, delete the phrase under these Conditions of Use. In the 5th paragraph, delete the phrase or cash advance credit limit (if applicable). Add at the end of Condition 32: If we make a change which you do not like, you can terminate your credit card account (see Condition 35) by notifying us, paying the outstanding balance of your card account and returning or destroying any cards issued on your card account. 8

11 Part Two Other changes to the Conditions of Use In the Table of Contents, we have renamed Condition 4 to: Additional cardholders, Condition 17 to: Regular payment arrangements and Condition 36 to: Anti-money laundering and counter-terrorism financing obligations. We have deleted Conditions and (dealing with privacy issues which are already addressed in the application form), replaced the old Condition 46 with a new Condition: Severance (see below) and renumbered old Condition 50 as Condition 47. Under Meanings of words : additional cardholder now means another person to whom we issue a card at your request and business day means a day that is not a Saturday or Sunday or a national public holiday, special holiday or bank holiday. In Meaning of words under balance transfer, change first dot point to: we make on your card account under an authority you give us to pay a debt owed on another account or transfer money to another account; and. In Condition 4, first sentence, replace we may issue a card and PIN to another person with we may issue a card and PIN to one other person. In Condition 4 delete the bullet point order a replacement card for themselves if their card become damaged; and In the third paragraph of Condition 11 add the following sentence: This limit is the total amount that can be withdrawn using a PIN from all accounts linked to your card, including any savings or transaction accounts linked to your card. In Condition 12 replace the second bullet point with balance transfer payments will only be made to your nominated bank account or to a non-commonwealth Bank Australian financial institution issued credit card or major store card; 9

12 Part Two Other changes to the Conditions of Use In Condition 20, add below the third bullet point: If your due date falls on a non-business day, the due date will be the next business day. In Condition 22 in the Average daily balance method section change the fifth paragraph to: For purposes of calculating interest, credit fees and charges are treated as purchases. Delete the last two paragraphs. In Condition 23 in the eighth paragraph add a new sentence after the first sentence to read: If this falls on a non-business day then we will debit your account on the next business day. Add as the new Condition 46: 46. Severance If any part of these Conditions of Use is void or unenforceable (e.g. if a court or other authority so declares): to the maximum extent possible, the remaining parts of these Conditions will continue to have full force and effect and be interpreted as if the unenforceable part had never existed; and we may change these Conditions so as to achieve (as far as possible) the intention of the original provision without it being void or unenforceable. We give you notice of any change under Condition

13 Part Three Changes to your credit card Schedule Low Fee cards with special condition H If you took out a Low Fee Commonwealth Bank Credit card since 1 May 2007 and your Schedule showed the following at special condition H: Annual fee waived each year if you have a Commonwealth Bank account other than a credit card account and you spend at least $1,000 on your card per annum, effective 23 October 2009 your special condition H will be amended to: Annual Fee waived in the first year and in each subsequent year if you have spent at least $1,000 (purchases and cash advances only) on your credit card account in the previous year. American Express International Transaction Fee As mentioned earlier in this brochure, we will be introducing American Express credit cards in the near future. If you are issued with an American Express credit card on your credit card account then the International Transaction Fee is 3.45%, for transactions converted by American Express. This applies at any time to cash advances, purchases or permitted transactions converted by American Express from foreign currencies to the Australian dollar equivalent. The fee for the transaction includes a 1.50% fee imposed on us by American Express. International Transaction Fees on transactions overseas but in Australian dollars There is a 2.00% International Transaction Fee where a transaction is in Australian dollars but the party accepting the card is overseas. This Transactions overseas but in Australian dollars fee replaces the Transactions converted by any other means fee in your Schedule. 11

14 Changes to the Commonwealth Awards Program General Terms & Conditions The following pages show changes to Commonwealth Awards Program General Terms and Conditions effective 23 October You should keep a copy of this notice as a record of these changes. You can download the revised Commonwealth Awards Program General Terms and Conditions at commbank.com.au/awards or call to have a copy sent to you. 12

15 Clause 1 has been amended to include or amend definitions for the following terms: Card means a MasterCard or Visa Awards (including World Vision Visa), Gold Awards or Platinum Awards credit card issued by the Bank only that is linked to a Member s Card account (excludes Golf Card and all Commonwealth Bank business card options including MasterCard BusinessCard, Capital Business Card, Mobil and Dulux Trade Card and any other credit card excluded by the Bank from time to time). Linked American Express Credit Card means an American Express credit card issued by the Bank that is linked to the same Card account as the Member s Card. Partner means a Partner of the Bank which agrees to provide redemption options and/or Bonus Points in the Program. Partner Terms and Conditions means the additional Terms and Conditions which relate to Partners participating in the Program which can be found separately to these General Terms and Conditions at the Commonwealth Awards website. Clause 2 has been amended to specify how you will be notified of changes to any Terms and Conditions and will now be worded as follows: 2. These Terms and Conditions and any Terms and Conditions communicated in any other Program material may be changed, amended or varied at any time by the Bank. The Bank will provide Members with at least 20 days written notice of any material changes to these Program Terms and Conditions, as well as material changes to Qantas Frequent Flyer Direct or Airline Rewards as specified in the Partner Terms and Conditions; any other changes to the Partner Terms and Conditions will be notified on the Commonwealth Awards web site. Please ensure that you check the latest Partner Terms and Conditions prior to redeeming any Award points. 13

16 Changes to the Commonwealth Awards Program General Terms & Conditions Clause 18 has been amended to include changes in how customers earn points with Commonwealth Awards credit cards and the Linked American Express card and will now be worded as follows: Earning Points 18. Each Member will earn one Commonwealth Awards point for every Australian dollar charged, billed and paid on their Card account using a MasterCard or Visa Card. Effective 23 October 2009, Members who have a Linked American Express Card will earn Commonwealth Awards points for every Australian dollar charged, billed and paid on their Card account using their Linked American Express Card, at the following rates: Member s Card account type Amount spent Points earned using Linked American Express Card Platinum Awards $1 3 Awards points Gold Awards $1 2 Awards points Awards $1 1.5 Awards points The following transactions are excluded from earning points: balance transfers, cash advances (including a transaction treated by the Bank as a cash advance, for example, utility bills paid in person at a bank), government charges, foreign exchange purchases, credit card insurance premiums, travellers cheques, interest charges, Qantas Frequent Flyer Direct fees, Bank fees, Card account payments, transactions deemed by the Bank to be for business purposes (with the exception of purchases made from Provet Pty Ltd), and any other transactions which may from time to time be excluded by the Bank. The terms and conditions of Airline Rewards in the Commonwealth Awards Program Terms and Conditions will be amended to read as follows: 14

17 Airline Rewards Clause 3 is amended to include where information about minimum redemption quantities and increments can be located and will now be worded as follows: 3. You must have earned a minimum number of Commonwealth Awards points before you can convert them to Airline Rewards Points and you may only convert Commonwealth Awards points to Airline Rewards Points in set minimum increments. For full details refer to Partner Terms & Conditions available on the Commonwealth Awards website or call the Commonwealth Awards Service Centre. Only whole points can be converted to Airline Rewards. Clause 4 has been amended to provide details on where the conversion rates for Airline Rewards can be located and will now be worded as follows: 4. The number of points required to redeem one Airline Reward Point may vary by Airline Reward Program. This rate is set by the Bank at its sole discretion and is subject to change from time to time. Any changes to this rate will be notified to you in accordance with clause 2 of the General Terms and Conditions. For current conversion rates refer to Partner Terms & Conditions available on the Commonwealth Awards website or call the Commonwealth Awards Service Centre. The terms and conditions of Qantas Frequent Flyer Direct in the Commonwealth Awards Program Terms and Conditions will be amended to as follows: Qantas Frequent Flyer Direct Clause 4 has been amended to provide details on where the conversion rates for Qantas Frequent Flyer Direct can be located and will now be worded as follows: 4. When a Member opts-in to Qantas Frequent Flyer Direct, any Commonwealth Awards points earned in the current statement period of their Commonwealth Awards credit card and in future statement periods will be automatically redeemed for Qantas Frequent Flyer points at the applicable conversion rate. This rate is set by the 15

18 Changes to the Commonwealth Awards Program General Terms & Conditions Bank at its sole discretion and is subject to change from time to time. Any changes to this rate will be notified to you in accordance with clause 2 of the General Terms and Conditions. For the current conversion rates refer to Partner Terms and Conditions available on the Commonwealth Awards website or call the Commonwealth Awards Service Centre. Clause 8 has been amended to remove references to 31 March 2009 as that date has passed. The clause now reads: 8. Members who elect to opt-in to Qantas Frequent Flyer Direct cannot redeem accrued Commonwealth Awards points for Qantas Frequent Flyer points except in accordance with clause 9. Accrued points will remain available to be redeemed for any other current Awards. Clause 9 has been amended to remove reference to clause 4 for conversion rate details as these no longer appear in clause 4. The clause now reads: 9. New Members who opt-in to Qantas Frequent Flyer Direct within 3 months of being enrolled in Commonwealth Awards can elect to redeem any accrued Commonwealth Award points for Qantas Frequent Flyer points in accordance with these terms and conditions. Clause 10 is amended to include where information about the opt in fee can be located: 10. An opt-in fee is charged each time a Member opts-in to Qantas Frequent Flyer Direct and on or about the anniversary of that date in each subsequent year while the Member s opt-in to Qantas Frequent Flyer Direct remains current. The fee will be charged automatically to the Member s Commonwealth Awards credit card. The opt-in fee is non-refundable. The opt-in fee will be advised to you no later than at the time of opt-in and is subject to change at the Bank s discretion. For the current opt-in fee refer to Partner Terms & Conditions available on the Commonwealth Awards website or call the Commonwealth Awards Service Centre. The opt-in fee is excluded from earning points. 16

19 Changes to Commonwealth Awards Partner Terms & Conditions The following pages show changes to Commonwealth Awards Partner Terms and Conditions effective 1 February You should keep a copy of this notice as a record of these changes. You can download the revised Commonwealth Awards Partner Terms and Conditions at the Commonwealth Awards website or call to have a copy sent to you. Qantas Frequent Flyer Direct The following conversion rates and opt in fee will apply to members who have opted in to Qantas Frequent Flyer Direct. Clauses 1 and 2 are worded as follows: 1. Subject to the Commonwealth Awards Program Terms and Conditions, Commonwealth Awards members can opt-in to Qantas Frequent Flyer Direct and automatically redeem their Commonwealth Awards points for Qantas Frequent Flyer points at the following conversion rates: Awards/World Vision Visa credit card 2 Commonwealth Awards points redeemed for 1 Qantas Frequent Flyer point; Gold Awards credit card 2 Commonwealth Awards points will be required to redeem 1 Qantas Frequent Flyer point; Platinum Awards credit card 2 Commonwealth Awards points will be required to redeem 1 Qantas Frequent Flyer point. 17

20 Changes to Commonwealth Awards Partner Terms & Conditions 2. The Bank charges an additional annual fee of $10 to opt-in to Qantas Frequent Flyer Direct. Prior to 1 February 2010 the conversion rates were as follows: Standard/World Vision Visa credit card 2 Commonwealth Awards points redeemed for 1 Qantas Frequent Flyer point; Gold Awards credit card 1.5 Commonwealth Awards points redeemed for 1 Qantas Frequent Flyer point; Platinum Awards credit card 1 Commonwealth Awards point redeemed for 1 Qantas Frequent Flyer point. There has been no change to the opt-in fee. Velocity Rewards The following conversion rates will apply for redemptions of Commonwealth Awards points for Velocity Points. Clause 2 has been worded as follows: 2. Subject to Condition 1, Members whose Commonwealth Awards Card account is an Awards/World Vision Visa credit card can redeem 2 Commonwealth Awards points for 1 Velocity Point; Members whose Commonwealth Awards Card account is a Gold Awards credit card can redeem 2 Commonwealth Awards points for 1 Velocity Point. Members whose Commonwealth Awards Card account is a Platinum Awards credit card can redeem 2 Commonwealth Awards point for 1 Velocity Point. Prior to 1 February 2010 the conversion rates were as follows: Standard/World Vision Visa credit card 2 Commonwealth Awards points redeemed for 1 Velocity Point; Gold Awards credit card 1.5 Commonwealth Awards points redeemed for 1 Velocity Point; Platinum Awards credit card 1 Commonwealth Awards point redeemed for 1 Velocity Point. 18

21 Changes to credit card benefits Commonwealth Bank Gold Credit Cards Effective 1 October 2009, the Your Global Connection service for Commonwealth Bank Gold credit card holders will cease to be available. Should you wish to continue to access a Concierge program, please contact us on hours, 7 days a week to enquire about upgrading to a Platinum Awards credit card. 19

22 Tips on how to keep your money safe Keeping your cards safe Sign your card as soon as you receive it and always carry it with you. Don t give your card, or devices (e.g. security tokens), to anyone, including family or friends. Take your cash, card and receipts with you after every transaction. Don t leave your card out in the open, such as at a bar, café or restaurant. Cut up and dispose of your card when it expires. Protecting your codes, such as personal identification numbers (PINs) and passwords Memorise your codes and destroy any letters advising you of new ones. Don t tell anyone your codes, including friends, family or businesses. Don t write down your codes or keep them on your phone or computer. Avoid letting anyone watch you enter your code during a transaction. If you choose your own codes, don t select the obvious such as your birthday, name, phone number, postcode, driver s licence number, or numbers which form a pattern. 20

23 Notify us immediately if: Your card or any other device, such as a security token, is lost or stolen. Someone has found out your PIN, passwords or other codes. There has been unauthorised access to your account. You can call us on hours a day, 7 days a week or contact us by through commbank.com.au or call at a branch. Chargebacks and reporting possible mistakes in statements Ensure that you keep all transaction records and check these to each card account statement for accuracy as soon as you receive it. Tell us promptly if you believe an error has occurred with electronic equipment, or you believe your statement has a mistake in it or records an unauthorised transaction. Any delay may limit our ability to resolve your complaint. We have chargeback rights within 30 days of the statement date, but if you tell us after this time and we cannot charge back the transaction, you may still be liable for the transaction. Please note If you don t make a reasonable attempt to disguise your codes or prevent others from accessing your code, you will be liable for any unauthorised transactions. Your liability for any losses arising from unauthorised transactions is determined in accordance with the Electronic Funds Transfer Code of Conduct. Your credit card account Conditions of Use contains more details on protecting your accounts and liability for unauthorised transactions. If you need another copy, simply visit commbank.com.au/creditcards or call , 24 hours a day, 7 days a week. 21

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