Published June 5, 2009

Maybank plays the cash rebate card

Its cardholders get up to $1,000 a year in $6m programme

By SIOW LI SEN

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(SINGAPORE) What credit cardholders want most of all is cold, hard cash. The latest to give it to them is Maybank Singapore, which is offering to pay cardholders up to $250 each quarter for spending on its plastic. This follows a successful promotion which gave money to new customers.

Back in October, Maybank gave new credit card sign-ups a 10-year fee waiver and a $100 cash credit which helped increase its card base by 20 per cent, said the bank's head of consumer banking Helen Neo.

The bank is believed to now have about 200,000 card members, making it a mid-sized player.

The Malaysia-owned bank this week decided to follow up with a cash back programme in an effort to entice spending on its cards.

Not only have recession-wary consumers cut back on spending, the industry is saturated with 6.4 million cards in circulation for a population of 4.8 million.

Although not a new strategy - Citibank was the first to offer cash back via its Dividend card - Maybank claims its latest campaign gives more money back.

Under its programme which is not tied to any merchant or specific card, Maybank card members can earn up to $1,000 a year or 200,000 points. The bank is spending $6 million on the programme.

'All card members will reap the benefits no matter which Maybank card they hold as this Rewards Infinite Value loyalty programme is also not tied to any specific card,' said Ms Neo.

Other credit card issuers which offer cash rebates restrict it usually to certain cards or at specific outlets.

DBS offers cash rebates on two cards, the POSB Everyday card, and its DBS CapitaCard Visa Platinum Card, which gives up to 20 per cent instant cash rebates at 12 CapitaLand malls.

United Overseas Bank points out that its rebate programme, UOB SMART$, has no restrictions on the amount earned for card members.

'Card members have been enjoying rebates of up to 10 per cent off at household retail brands such as Shell, Best Denki, Metro,' said Gan Ai Im, regional and Singapore head, cards and payment products, United Overseas Bank.

'Our top rebate earners exceed several thousand per annum,' she added.

Maybank's cash rebates apply to spending in many categories but not for travel. Big-ticket jewellery purchases will qualify for the cash rebate though, said Ms Neo.

Citi said that its Dividend card has no restrictions but it pays up to $800 per year.

Citi is also the only issuer which gives the cash back in the form of a cheque to customers, a popular option.

Maybank said its year-on-year billings growth has consistently outperformed the industry.

Ms Neo said that its credit card billings in March grew 4.66 per cent year-on-year while the industry's was down 3.21 per cent.