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Does anyone know if there is an expectation for a new IHG credit card with a new provider following the Creation saga? If so any predictions on timelines? I’m looking for a new credit card to earn hotel points with
Ditto!
WIshful thinking but happy to be proven wrong!Considering we never saw a new Miles&More card appear after Cornercard withdrew, I doubt it. Unless you can rustle up a US residential address and other necessities for the cards over there, you’re stuck with Amex transfers to IHG.
The Creation card still exists (though possibly not open to new applicants?) so I can’t see another IHG card appearing any time soon.
If you want to collect hotel points get yourself a Virgin Atlantic credit card (Hilton/IHG), Membership Rewards paying Amex (Hilton/Radisson/Marriott Bovey) or Marriott Bovey Amex.
Considering we never saw a new Miles&More card appear after Cornercard withdrew, I doubt it. Unless you can rustle up a US residential address and other necessities for the cards over there, you’re stuck with Amex transfers to IHG.
Amex doesn’t partner with IHG, the only way to go from Amex -> IHG is via VS.
The Creation card still exists (though possibly not open to new applicants?) so I can’t see another IHG card appearing any time soon.
With the market as it is it will be hard for IHG to find another co-brand card issuer. The two recent ‘good’ non-Amex cards were from Virgin (revenue share agreement between aligned companies) and Barclaycard (loss leader to excite a target market segment).
Ironically IHG would probably be very keen to replace Creation. Creation’s loss, through poor account management, was IHG’s gain — the total value of points ‘sold’ to Creation must have been stonking over the last few years.
Overlapping between legacy cards and new ones with the same logo but a different issuer has happened in the UK market before. I’m sure there’s no obligation on IHG to stick with Creation now the card is no longer open to new applicants.
Overlapping between legacy cards and new ones with the same logo but a different issuer has happened in the UK market before. I’m sure there’s no obligation on IHG to stick with Creation now the card is no longer open to new applicants.
Having negotiated some of these co-branded/white-label product agreements before for FS organisations, you would normally look to agree Run-Off terms that allow the “Brand” to run down the current book over time with the existing processor. Ideally, you would want to avoid a migration of accounts to the new processor. Migrations are complex, expensive and error prone. Better to incentivise existing cardholders to apply for the new product independently. You would then have a trigger point (time based and/or account volume based), which would then permit the existing processor to “unbrand” the product and transfer accounts over to another suitbale product.
It actually appears to me that IHG/Creation may have effectively entered into a Run-Off period. I cannot imagine that Creation would be able to hold IHG to any exclusivity provisions while the cards are not being marketed. However, as has been mentioned above it is difficult to see another processor in the market who will be interested in replacing Creation.
The Creation card still exists (though possibly not open to new applicants?) so I can’t see another IHG card appearing any time soon.
Ironically IHG would probably be very keen to replace Creation. Creation’s loss, through poor account management, was IHG’s gain — the total value of points ‘sold’ to Creation must have been stonking over the last few years.
Creation shouldn’t be allowed to run a bath, let alone a credit card
“Creation shouldn’t be allowed to run a bath, let alone a credit card.”
Love this! 😂😂😂
For all intent and purposes there are strong indications that Creation want to exit the Uk credit card market all together. They no longer offer credit cards to new customers, of any type, not only the many Co-branded ones, but also the Creation own types. As they did with the Marriott Card, they run down the contract terms with the partner and then closed then replaced the card I believe. The strange thing is that they did not try to sell the accounts like other providers did before (latest was MBNA sale to Lloyds Group, or the many acquisition done by Barclaycard in the past, like buying EGG, Goldfish, Morgan Stanley- including the super premium Morgan Stanley i24, then Barclaycard i24 and now Barclays Visa Infinite card).
My personal hope is that a new player with a strong CC background in another country, namely Chase, can enter the UK market and offer a Co-branded “Travel Rewards Card” or just a Rewards Card with multiple Travel Partners (many airlines and hotels have lost their partners with the discontinuation of MBNA/Barclaycard/Creation offers
Not going to happen. The restrictions on interchange rates makes most cards unprofitable without hefty annual fees.
Can someone tell this govt that the credit card fee restrictions were imposed by EU? That way the govt will then scrap the rules and call it a brexit dividend. Ironically the uk govt lobbied for the restrictions.
Not going to happen. The restrictions on interchange rates makes most cards unprofitable without hefty annual fees.
Can someone tell this govt that the credit card fee restrictions were imposed by EU? That way the govt will then scrap the rules and call it a brexit dividend. Ironically the uk govt lobbied for the restrictions.
UK retailers were the one lobbying for it as the use of cards in the uk was way more common then in many part of Europe where cash was still king.
Not going to happen. The restrictions on interchange rates makes most cards unprofitable without hefty annual fees.
Can someone tell this govt that the credit card fee restrictions were imposed by EU? That way the govt will then scrap the rules and call it a brexit dividend. Ironically the uk govt lobbied for the restrictions.
Imposing increased transaction costs on hundreds of thousands of UK businesses is not a Brexit dividend that the government will introduce. The low interchange fees are here to stay.
For all intent and purposes there are strong indications that Creation want to exit the Uk credit card market all together. They no longer offer credit cards to new customers, of any type, not only the many Co-branded ones, but also the Creation own types. As they did with the Marriott Card, they run down the contract terms with the partner and then closed then replaced the card I believe. The strange thing is that they did not try to sell the accounts like other providers did before (latest was MBNA sale to Lloyds Group, or the many acquisition done by Barclaycard in the past, like buying EGG, Goldfish, Morgan Stanley- including the super premium Morgan Stanley i24, then Barclaycard i24 and now Barclays Visa Infinite card).
My personal hope is that a new player with a strong CC background in another country, namely Chase, can enter the UK market and offer a Co-branded “Travel Rewards Card” or just a Rewards Card with multiple Travel Partners (many airlines and hotels have lost their partners with the discontinuation of MBNA/Barclaycard/Creation offers
No way. High spenders, like most people following HfP, are loss makers for big banks. The only way to offset the cost for the banks is to take a higher percentage, which does not seem possible at the moment. And remember that creates inflated prices as the merchant won’t take the hit so that we can collect miles.
Or think that way: why has Chase not entered the UK credit card market already, considering their US portfolio? What are they waiting for?
I think it is a mistake to look at the credit card market in the US. Americans spend more, pay much more fees and much more profitable. Unlike Europeans.
Just to be clear, my idea for Chase offering some sort of CC aimed at travellers is that they could make up the money when travellers spend ex EU/UK with them, and thus partially support the rewards (which could be further supported by annual fees of course)
Just to be clear, my idea for Chase offering some sort of CC aimed at travellers is that they could make up the money when travellers spend ex EU/UK with them, and thus partially support the rewards (which could be further supported by annual fees of course)
Obviously I don’t have the exact data but miles/points chasers may not be the best target for exEU spend fees. They’d also have fintech or other credit card products with no fee.
And my second point remains: why don’t Chase release such a product then?
Just to be clear, my idea for Chase offering some sort of CC aimed at travellers is that they could make up the money when travellers spend ex EU/UK with them, and thus partially support the rewards (which could be further supported by annual fees of course)
Obviously I don’t have the exact data but miles/points chasers may not be the best target for exEU spend fees. They’d also have fintech or other credit card products with no fee.
And my second point remains: why don’t Chase release such a product then?
They just lunched their UK operations (less then a year). I have signed up almost immediately and have seen their offering slowly improving, most recently with the introduction of a Saving account. In the time since they launched as a trial (no real marketing behind), they have set up many surveys trying to gather interest in financial products/features, and CC have been a recurring theme, so I would think is more then 50% likely that they will enter the CC market at some point, however this does not mean that they will definitely launch a Rewards CC.
With regards to customer profiling, when Chase Uk finally launched their marketing campaign, the BA lounges at Heathrow were full of their advertising, with clear messaging about the benefits associated to their Debit Card for travellers
I agree. There must be a credit card coming. But I am still not convinced it would be a lucrative rewards card.
I am pretty pessimistic, I don’t know whyNot going to happen. The restrictions on interchange rates makes most cards unprofitable without hefty annual fees.
Can someone tell this govt that the credit card fee restrictions were imposed by EU? That way the govt will then scrap the rules and call it a brexit dividend. Ironically the uk govt lobbied for the restrictions.
Imposing increased transaction costs on hundreds of thousands of UK businesses is not a Brexit dividend that the government will introduce. The low interchange fees are here to stay.
You mean the govt wouldn’t take a wrong decision? Don’t count on it!
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