SA's only survey on credit card value releases ratingsFor the second consecutive year, the Discovery and SAA credit cards have come out tops in the country's only survey that rates credit-card value. The SAA Voyager Premium card is the country's most valuable standalone credit card and the Platinum DiscoveryCard is the most valuable card overall, according to the Value in Credit Cards 2007 survey, the results of which were announced today. Razor's Edge Business Intelligence, a Johannesburg-based consultancy and research company, undertakes the annual survey. The SAA Voyager Premium card is one of a suite of three credit cards launched by the airline in 2006. The Platinum DiscoveryCard has been on the market for three years. It is linked to various other Discovery products, among which is the Vitality wellness program. Twenty accolades were awarded accolades in the research work. Evaluations were done in six card-spend ranges, for both standalone and linked cards. "There weren't too many surprises in the findings," says Bruce Conradie*, MD of Razor's Edge Business Intelligence. "We were not surprised to find the Vodacom card did well (it was launched too late to be rated in the previous survey. "And the DiscoveryCard retained top spot, especially in the top two spend categories, where the margins between it and the next most valuable card were wide." "One interesting result was the Pick n Pay Go Banking credit card taking top spot in the lowest spend category. It highlights the value offered by a card not charging annual fees. However, once consumers start spending more, those cards that offer loyalty points and other rewards become far more valuable than the no-fee cards." As was the case with previous surveys, the 2007 survey shows that consumers can get excellent value from their credit cards. All cards provide interest-free credit (provided cardholders make the full payment due each month). They also provide comparatively good rates of interest on positive balances. In addition, many cards offer extensive value-added benefits, among which are free travel insurance, loyalty points, frequent flyer miles, and discounts or rebates on airline tickets, car hire, and retail products, among others. Eventful yearIt was another eventful year in the card industry, with the rollout and implementation of the National Credit Act (NCA). The number of cards that met the survey criteria contracted from 99 in 2006 to the current surveys 84. This was largely a result of product range consolidation on the part of Absa. In 2006, it had 32 rated card products. This has been reduced to 13. Moreover, the Bestmed and Telemed credit cards are no longer being issued. In the 2006 survey, these cards were joint winners of the one of the spend categories. The full set of accolades awarded in the survey is: Most valuable standalone credit card R500 spend category R1500 spend category R3000 spend category R6000 spend category R12 000 spend category R24 000 spend category Most valuable credit card R500 spend category R1500 spend category R3000 spend category R6000 spend category R12 000 spend category R24 000 spend category Highest-Value credit card About Value in Credit Cards 2007Value in Credit Cards 2007 is the third iteration of an annual survey of South African credit cards. Profiled in the report are 84 credit cards and 20 card issuers (banks and co-branded card issuers). • Cards profiled – 84 Changes made the survey methodology, since the 2006 survey, include:• The ratings now account for defaulters (cardholders who fail to pay their accounts on time, or who have returned payments) About Razor's Edge Business IntelligenceThe company is a provider of business intelligence and consulting expertise, with a specialisation in loyalty marketing. Loyalty marketing includes the use of points-based rewards programs, customer clubs, discount programs, customer retention programs, and customer experience management. The company's research reports include proprietary, syndicated, and open surveys. The company was founded in 2003 by marketing consultant Bruce Conradie and is based in Johannesburg, South Africa. *Bruce Conradie is Managing Director: Razor's Edge Business Intelligence, which provides consulting services in the fields of customer loyalty, membership marketing and relationship marketing. |