Changes are in the wings for ASB and Westpac customers who have credit cards linked to the banks’ reward schemes.

The changes mean reward points will no longer be able to be converted into Air New Zealand airpoints dollars.

ASB customers signed up with the bank’s True Rewards programme have until 29 October 2009 to convert their rewards into airpoints; Westpac customers with the bank’s Hotpoints programme have until 6 November.

Air New Zealand's decision

The changes are due to Air New Zealand’s decision to withdraw from the two reward schemes. Air New Zealand’s Steve Bayliss says the company wants to focus on cards that allow customers to earn airpoints dollars directly rather than “conversion cards”.

BNZ’s GlobalPlus cards are currently the only “direct earn” cards available. Bayliss says Kiwibank’s “Go Fly” MasterCard, to be launched in November, will also allow customers to earn airpoints dollars directly. The airline expects to announce an arrangement with a third bank before the end of the year.

Alternative travel rewards

While ASB and Wesptac customers will no longer be able to convert rewards into airpoints dollars, both banks say rewards can still be used for other travel: ASB customers can redeem rewards with the bank’s TRIPS partner; Westpac customers have the option of using points earned through the bank’s Hotpoints Holiday Credits scheme.

If you want a credit card with rewards, check out our review of reward schemes. Unless you pay off your balance each month, there’s little point even considering a card with rewards – interest charges will quickly outweigh the value of any points earned.

More from consumer.org.nz

• Credit cards - our guide to the best cards for flight rewards and shopping vouchers, and tips for managing your card.

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