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Eterna Is just a another card

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Yes, got the SMS from BoB a while back & this has messed up my usage strategies.
For my use case, this is a significant impact since I've been paying my genuine rent using Eterna. It was a USP (atleast for me) that Eterna had a pretty much flat 3.75% RR for all online spends which is now killed. SBI CB is now clearly better as a pure CB card!

Also, it's not just a removal of 5x.. With the reduced RPs, reward rate for the special MCCs is now 1/10th of what was possible before!
 
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That is why... Any ltf card is always better than all these high paying cards.. These high rewards rates cant be sustained for too long... Else they will have to close their company..... Its just a short honeymoon... After they acquire target customers... They will reduce the reward..

I remember such givings by foodpanda in food delivery sector....... They gave it for one full year.... I remember eating full size pizza in 9rs....matka biryani 1kg in 9 rs...... The company got closed in 1 year...

Its always best to pull the plug at right time... Same will happen with sbi cashback card too... They might acquire required customer much faster... So expect devaluation much earlier...

They are already out of all discount offers of sbi
 
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Batmanbaba said:
That is why... Any ltf card is always better than all these high paying cards.. These high rewards rates cant be sustained for too long... Else they will have to close their company..... Its just a short honeymoon... After they acquire target customers... They will reduce the reward..

I remember such givings by foodpanda in food delivery sector....... They gave it for one full year.... I remember eating full size pizza in 9rs....matka biryani 1kg in 9 rs...... The company got closed in 1 year...

Its always best to pull the plug at right time... Same will happen with sbi cashback card too... They might acquire required customer much faster... So expect devaluation much earlier...

They are already out of all discount offers of sbi
Click to expand...
or I would request banks to stop issuing such high rewards cards as LTF!! At least they will save some part of rewards being given..... Max they can offer spend based rewards!!
 
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sameerdes said:
Yes, got the SMS from BoB a while back & this has messed up my usage strategies.
For my use case, this is a significant impact since I've been paying my genuine rent using Eterna. It was a USP (atleast for me) that Eterna had a pretty much flat 3.75% RR for all online spends which is now killed. SBI CB is now clearly better as a pure CB card!

Also, it's not just a removal of 5x.. With the reduced RPs, reward rate for the special MCCs is now 1/10th of what was possible before!
Click to expand...
the problem is not much about genuineness of the spend as much as it is about making users spend on excess items/services that they don't need.
for eg: rent, electricity, water, school fees are expenses that the user is going to always pay whether he had credit card or not. banks realised late that users are going to pay school fees, whether they get cashback or not!
aim of credit card companies is to make users spend on things that they otherwise wouldn't have spent if they didn't have credit card. the devaluation was bound to happen soon.

what bothers me is that all banks kind of decided to do it simultaneously as if preplanned. even if one bank doesn't devalue, all the spends would be done on that card but they kind of formed a cartel to stop this usage.

Cryptopsycho said:
or I would request banks to stop issuing such high rewards cards as LTF!! At least they will save some part of rewards being given..... Max they can offer spend based rewards!!
Click to expand...
SunnyM said:
I second that. Cards like Eterna shouldn't be given LTF.
Click to expand...
from our (users') perspective, i agree. but banks will only calculate their profit from a card.
banks assume that high income (more than 40 lakh net) will also have high spend. let's say the holder spends 20% of it on card. if issuing banks earn 1% as interchange fees. that amounts to 8000 earned by bank, which is more than the 2000 rupees card fees. so they let go of 2000 rupees in order to earn 8k.
 
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But you did not factor in the reward component in your interxhange fees point
athadfjp said:
the problem is not much about genuineness of the spend as much as it is about making users spend on excess items/services that they don't need.
for eg: rent, electricity, water, school fees are expenses that the user is going to always pay whether he had credit card or not. banks realised late that users are going to pay school fees, whether they get cashback or not!
aim of credit card companies is to make users spend on things that they otherwise wouldn't have spent if they didn't have credit card. the devaluation was bound to happen soon.

what bothers me is that all banks kind of decided to do it simultaneously as if preplanned. even if one bank doesn't devalue, all the spends would be done on that card but they kind of formed a cartel to stop this usage.



from our (users') perspective, i agree. but banks will only calculate their profit from a card.
banks assume that high income (more than 40 lakh net) will also have high spend. let's say the holder spends 20% of it on card. if issuing banks earn 1% as interchange fees. that amounts to 8000 earned by bank, which is more than the 2000 rupees card fees. so they let go of 2000 rupees in order to earn 8k.
Click to expand...
 
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