amazon credit card closing down

Froggitt

Superheavy wrote: »

I guess they're hoping that they'll get enough people sticking with their new card without rewards to make it worthwhile.

Why would people do that?

murphydavid

I wonder if Amazon is an inocent party in this. Do they get forced out or paid for allowing MBNA to take over? The way they are so quiet in the matter leads me to wonder that not only were they paid but have agreed not to start up with another bank hence giving MBNA the misguided notion that we may stay with them for a while. After all if Amazon do imediately start up with another rewards card MBNA are most likely to get zero use of the new cards they are issuing.

geriatrix1

I suspect that MBNA are hoping to retain cardholders by simple inertia. That rather ignores the fact that those of us who hold an Amazon card do so primarily for the rewards, and presumably are savvy enough to have applied for the card in the first place.

Doc_N

murphydavid wrote: »

I wonder if Amazon is an inocent party in this. Do they get forced out or paid for allowing MBNA to take over? The way they are so quiet in the matter leads me to wonder that not only were they paid but have agreed not to start up with another bank hence giving MBNA the misguided notion that we may stay with them for a while. After all if Amazon do imediately start up with another rewards card MBNA are most likely to get zero use of the new cards they are issuing.

More likely Amazon will be launching their new card (backed by another bank) on or after 1 October (with Amazon gift cards as cashback) - but are legally unable to announce the new card until then because of their existing contractual arrangements with MBNA.

I'm confident there will be a proper Amazon cashback replacement (though maybe not at 1%) very soon - but I do have alternative arrangement in place just in case.

mjr

geriatrix1 wrote: »

I suspect that MBNA are hoping to retain cardholders by simple inertia. That rather ignores the fact that those of us who hold an Amazon card do so primarily for the rewards, and presumably are savvy enough to have applied for the card in the first place.

It's a strange strategy from them given the type of people attracted to cashback cards, and the fact the cashback was fairly visible with this card as you got emailed codes to enter into Amazon's site so you would know how much you were benefiting.

If they do any kind of data mining they'll have noticed I stopped spending on mine immediately after the announcement, fortunately I have the Barclaycard Amex 1% card which I've switched to. Will definitely be watching to see what Amazon come out with next though.

McCreary

I got the standard email saying that I would be switched to a regular MBNA card - no mention of rewards. I'll definitely be cancelling in October!

planteria

geriatrix1 wrote: »

I suspect that MBNA are hoping to retain cardholders by simple inertia. That rather ignores the fact that those of us who hold an Amazon card do so primarily for the rewards, and presumably are savvy enough to have applied for the card in the first place.

no doubt re. the inertia. MBNA and Barclaycard (especially) have paid for cardholders, and must, overall, benefit from doing so.

i never fancied this card in the first place, as i always prefer straight cashback (accepting a dalliance with HHonors). but it seems to me that everyone here that applied for the rewards & no longer gets what they want will very reasonably be off to pastures new.

murphydavid

Another thought. I always paid mine off in full, so I'm not sure. But if someone has a credit balance this will be transfered I presume to the new MBNA card (for free?) usually costs 3% for credit transfers. Anyway maybe MBNA can make it all worthwhile by taking the credit interest of those unfortunates who can't clear their balances for a time.

Superheavy

Froggitt wrote: »

Why would people do that?

As Geriatrix said, they'll be hoping that people just take the new card, and use it in the same way they'd have used their old card. The PIN stays the same, I imagine many people will just put the card in the wallet and won't spend the time shopping around to find the better alternative.

bunny71

Froggitt wrote: »

Why would people do that?

Surely it's obvious? Not everyone is fortunate enough to be able to secure another credit card, so may be forced to stick with the MBNA card.


I'd rather hold on to the MBNA card until Amazon bring out something new, than risk rejection from my second choice (M&S). I've always had an excellent credit history, but surviving on carer's benefits now, it's my low income and/or non-employed status that's a problem for some providers.