There is no way that David Jones will let go of Interest Free or payment deferred terms. This drives a large percentage of the revolving balances that make the DJ's card so attractive. Amex has also wanted a part of this pie for a very long time.
DJ's customers sit at the premium end of the spectrum so surcharging and the like is of little consequence to them in general. Expect to see Platinum and other premium offers (see the Holt Renfrew Amex Platinum from Canada)
The kicker to the deal, is that Amex are able to offer DJ's a huge clip on EVERY transaction that is processed. Do the math, this is going to be a BIG money spinner for both parties, not to mention the $40 million in working captial it frees up from DJ's once Amex take over the book.
Citibank couldnt make the same offer with Visa and Mastercard given the way interchange is heading in this country and the skinny margins that they are dealing with.I dont need to remind you of the issues with QF points and the ridiculous (nearly 4%) fee on FX transations with Citi.
Imagine, Now DJ's gets a clip on ALL of your spending - Just like Qantas do with their Amex - and probably no merchant fee on Amex cards used at David Jones. Why wouldnt they take this deal?
I too completed a survey with DJ's. They were asking about frequent flyer points, gift vouchers and other benefits.
One would think that after 3 years and an 18 month tender process and having a beauty parade of every bank in the country - DJ's would have it right - Only time will tell.
I wonder how I know so much about this...........
). Looks like soon:
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