MBNA smart mastercard - it was good while it lasted - rewards cut!

[tobiwobi]

The following is copy/paste from the toronto star moneyville article:

Earlier this week MBNA, the country's fourth largest credit card issuer, announced changes to the Smart Cash rewards program that reduces the ability to earn cash back by up to 50 per cent.

Smart Cash Platinum MasterCard cardholders used to enjoy the following benefits:

• Five per cent cash back on gas and grocery purchases up to $600 a month for the first six months;
• Three per cent cash back on gas and grocery purchases up to $600 a month thereafter;
• One per cent cash back for all other purchases.

After the changes from MBNA, here's what new Smart Cash Platinum customers can expect to receive:

• Five per cent cash back on gas and grocery purchases up to $400 a month for the first six months;
• Two per cent cash back on gas and grocery purchases up to $400 a month thereafter;
• One per cent cash back for all other purchases up to $1,250 a month - including groceries and gas.

These changes are in effect immediately for new customers, and take effect December 1for existing cardholders. MBNA has sent letters advising customers of the changes to their rewards program.


Cathy Velasquez, Media Relations at MBNA Canada would not say why they have reduced the rewards. Velasquez said MBNA continuously evaluates their products and makes changes to improve their business, while trying to remain competitive.

Before these changes, you could take full advantage of the gas and grocery spending bonus of up to $600 a month and earn $288 in the first year and $216 in subsequent years.

Now, when you spend $600 a month on gas and groceries, you’ll earn $192 in the first year and $120 in subsequent years. That’s a decline of 50 per cent in the first year, and nearly 45 per cent thereafter.

If you’re an existing Smart Cash cardholder, you might be evaluating your need for a new cash back credit card. The bottom line: Smart Cash used to be the undisputed cash back king in Canada, but these changes from MBNA will take a big bite out of your rewards.

[Brad]

So what's the best cash back credit card now? I got an offer to upgrade my smart cash card to the smart cash world card which would give me another 6 months of 5% cash back, but what after that?

[natynat]

Oh...I just got that card too. Well...I've been with MBNA for quite some time & I love their balance transfer offers. I can't complain too much I guess.

[ZombieMakeup]

Say No To Credit Cards

[ING_rep]

Arghhhhh!!! Just got the letter, they piss me off! When is ING going to offer a credit card with a fidelity value worth it's while!

[ING_rep]

I'm switching to the Capital One cash back : http://www.capitalone.ca/credit-card...VW&scrolly=373

best alternative I could find!

[tobiwobi]

TD bought MBNA and promptly changed the rewards programs.

Scotia bought ING - I wonder if they will eventually cut all ING perks, like TD with MBNA.

[chillys-willy]

Did any of you get invited to switch to the Cash Back World card? The benefits are more like the cash back card.

[baddays5]

Good offer for SmartCash card 100$ free gift card! http://www.ratesupermarket.ca/deals/holiday-promo/

[peacestar]

Yes I got the letter too. I will upgrade it to the World card for 6 months and then not use the card.