CARDBITRAGE
TF Legend
That's the conundrum, right? By not removing it, Magnus would become a more rewarding card at a quarter of the price.
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The most painful devaluation has finally arrived - Gyftr is gone!
For several months, It was the more rewarding card than Reserve before the introduction of transfer partners.
exactly my point
Just confirming, insurance payments will continue to earn normal points on both Magnus and Reserve even if the proposed restrictions on Utility and Govt Payments are implemented? I mean insurance payment MCC is not among blacklisted MCCs, right?
CARDBITRAGE
TF Legend
I guess you have a point there. But a 6% reward rate was more digestible than the 1.2% as per the recent proposals. So automatically, logic will force people who have high spends to not retain the reserve over Magnus. Although not pragmatic, the 25K was a standout product feature of the Magnus, and I hope they don't tamper with that.
Yes - Magnus have cap of 6000 points for Insurance payment -dont know about reserve
Shittt mannn...
I got my Magnus just 2 months ago. 😏
Insurance payments still earn ER's at maximum of 6000 ER's per transaction. No devaluation on this MCC.
Myntra, MMT Hotels, Yatra all were 10X and all are 3X now.
FK, Amazon SV, Amazon Pay are now 2X.
All popular brands have been devalued drastically by approx 70%.
grshnehete
TF Select
As I understand, as of now, all the devaluation is on gift edge portal, not on 1L spend bonus or the conversation.
In this case we will be getting 31000 ER's which will translate to 24800 points in case of no accelerated points
In this case we will be getting 31000 ER's which will translate to 24800 points in case of no accelerated points
Well, they can't keep giving 20,000 airmiles for 1L spends. Either the milestone will go or the ratio will change. Everyone knows this. It's just that they went all in.
They could have done so many things gracefully.
First, reduce it to 20,000, then to 15,000, and finally to 10,000. During this, slowly change the ratio to 5:3. Then, increase the cap for GrabDeals and GyFtr. This would make it a good 3.6% card with various reward multipliers on GyFtr, GrabDeals, and TravelEdge. Mandate ITR while issuing. Stop giving it as LTF/FYF. Instead of vouchers, give points.
Reserve: Keep the ratio of 5:4 or 5:3 with multipliers and stuff, and 2x for international. Include a bonus percentage of miles if the user is a burgundy account holder (like it is with Citi Prestige for Citi Gold customers). Mandate ITR while issuing. Include more hotel memberships.
Or allow only one active ER card.
Axis needs active low-end users to fund the premium segment. So improve the lower end segment.
PiperatGatesofDawn
TF Premier
They didn't have that before. When they introduced 25k, it was sustainable at 5:1 (People used to use privilege trick then to extract more value). Not when they introduced airline partners at 5:4.
CARDBITRAGE
TF Legend
They could've sustained this if they made the card more exclusive. Why do I say this? Because they are not devaluing their Burgandy Private CC. ITR requirements were already in place, but the major mess-up happened with c2c. The criteria should've been similar to what other banks follow. For instance, AU Bank does not allow anyone and everyone to obtain their Zenith card on their Swipe Up portal. As per my understanding, only select cards would qualify for the same. Something similar could've been followed by them or maybe they could've kept things even more stringent with their cards being highly rewarding. And we all know how sparingly ICICI gives LE's. That was sarcastic, by the way. XD
Try getting DCB/Infinia on c2c basis with an Amazon Pay card. They will most certainly give you one of their basic cards. This is where I think Axis did a huge miscalculation. Maybe they hoped that people would fall for that temptatious 25k milestone of theirs and end up in a debt trap. I understand that they were ambitious, and I highly support growth, but they should've done a thorough product analysis and plugged all the evident loopholes before they delved into this. 25K milestone should've been awarded against only certain spends/categories. With no such exemptions, this opened many doors for people who had a knack for manufacturing spends. It's as if Axis was asking for people to loot them. If they had made some changes several months ago, all the spurious spenders wouldn't have taken much interest in their cards. I guess it was common knowledge that the Magnus and Reserve were too good to be true, and all good things eventually come to an end. I completely agree with a soft landing when it comes to deval, but that would've been the case if they hadn't onboarded certain groups of opportunistic people who had their minds set on extracting every drop of juice out of their Axis cards. And you can't really blame them. If you leave gold out on the streets unprotected, it is bound to get stolen.
All the things you mentioned are possible only if everyone who is prone to unethically looting Axis cancels their cards. Now that we know it is not possible, why would they try eating a poisoned apple? The basic principle of business is not to do it if it makes you no money, especially if it will never make you any money. Keeping a different transfer ratio is only possible if they cancel everyone's cards and strictly issue cards as per the correct standards. That again is not possible, so I don't see that happening. But it is up to Axis now to make their cards reasonable somehow, or they will possibly lose a major chunk of their customers who were acquired at great costs.
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The problem now is, people won't trust axis for long term relationship like in the case of HDFC. So for everyone it will be
Get. Loot. Exit.
Get. Loot. Exit.
The analysis is fine at operational level. However for the top management, it is just goal of becoming a said rank, say Rank 3 in CC within these many quarters or CC spends growth QoQ. Then CC program is defined with budget and strategy to spend in which area - marketing, product itself or customer acquisition cost, advertising, rewards, etc.
Magnus just fitted the bill with tweaks. This would have helped them in many ways - new aspirational customers, affluent segment, credit growth, converting to CASA, etc which the board may be measuring. And point miners as well exploiters just utilised this window.
I don't believe the operational reasons are the sole reason for devaluation but it will be more on reaching those strategic goals. They would have predicted the churn ratio and used in calculations. Also don't forget the message to Citi customers that they have equivalent products in portfolio to have customer stickiness. Unfortunately, they are the ones who will be impacted during card transition. But this will be repurposed as lifestyle card. Hope some data analysis in the upcoming quarter can throw some light.
On the other banks comparison, HDFC has gone through this cycle and now stable as market leader. ICICI Bank has become a lot laid back under the new leadership. Hope we will see a new disruptor and we too will join the bandwagon early to avoid holding the d*** in the air at the end.
Magnus just fitted the bill with tweaks. This would have helped them in many ways - new aspirational customers, affluent segment, credit growth, converting to CASA, etc which the board may be measuring. And point miners as well exploiters just utilised this window.
I don't believe the operational reasons are the sole reason for devaluation but it will be more on reaching those strategic goals. They would have predicted the churn ratio and used in calculations. Also don't forget the message to Citi customers that they have equivalent products in portfolio to have customer stickiness. Unfortunately, they are the ones who will be impacted during card transition. But this will be repurposed as lifestyle card. Hope some data analysis in the upcoming quarter can throw some light.
On the other banks comparison, HDFC has gone through this cycle and now stable as market leader. ICICI Bank has become a lot laid back under the new leadership. Hope we will see a new disruptor and we too will join the bandwagon early to avoid holding the d*** in the air at the end.
Me also hoping to get May, June and July month milestone. Spends include insurance MCC(Payzp+ RG).
In view of such root level scrutiny by Axis and devaluation, I hope they should not ban Pazp+RG MCC.
No issues for Citi as of now. Citi customers might face the heat after this FY when complete migration happens. I've been upgrading my Citi Prem Miles to Prestige and I've got same old reception in customer service.
