The annual fee for your credit card will be changing from $0 to $399. The updated fee will apply from when your next annual fee is due on or after 11 March 2025.
Guess it was too good to last.
HSBC Premier World Mastercard Fee Increasing to $399
woozie3 on 28/01/2025 - 11:46
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Complimentary travel insurance, 2 DragonPass lounge passes per year, 1.5QFF points per $1 for the first year if you choose this rewards program.
Doesn't seem worth it for $399?
Yea. Not with the annual fee.
Mine says..
"The annual fee for your credit card will be changing from $0 to $199. The updated fee will apply from when your next annual fee is due on or after 11 March 2025."
The $399 fee applies to card holders on the Qantas rewards program
Regardless I will be cancelling mine before 1st year renewal as I also have the Bendigo Bank Ready Credit Card which still comes with complimentary insurances, though trimmed back recently
I got notified too. Looks like most of the HSBC CC's are getting price increases from 11/03/2025:
https://www.hsbc.com.au/content/dam/hsbc/au/docs/credit-card…Thanks, so $199 if using the HSBC Rewards program instead of Qantas.
Yep.
Product Until 10 March 2025 From 11 March 2025 HSBC Platinum Credit Card $0 in the first year ($149 afterwards) $0 in the first year ($199 afterwards) HSBC Platinum Qantas Credit Card $0 in the first year ($299 afterwards) $0 in the first year ($399 afterwards) HSBC Star Alliance Credit Card $0 in the first year ($450 afterwards) $0 in the first year ($499 afterwards) HSBC Premier World Mastercard (HSBC Rewards Plus Program) $0 $0 in the first year ($199 afterwards) HSBC Premier World Mastercard (Qantas Rewards Program) $0 $0 in the first year ($399 afterwards) Do people think the benefits might be worth it at $199? Seems more reasonable.
@woozie3: Well, whether you can justify the annual cost depends on:
- Your personal expected annual spend, and therefore expected accumulated points
- The value of the points depending on what you want to spend them on (which, for example, differs drastically for QFF points)
For me, my main draw to the card was the $0 annual fee, so I'll probably be changing.
What's the HSBC Rewards program like? $199 of value in it?
I'm not in the program, but in terms of flights: "If you choose Reward Plus, you get 1.5 Rewards Plus points per $1 spent on eligible purchases, which can be redeemed for Singapore Airlines KrisFlyer, Cathay Pacific Asia Miles or Virgin Australia Velocity points. This is equivalent to 0.75 miles per $1 spent." (https://www.ozbargain.com.au/node/836146?page=2#comment)
Sad, was planning to jump on this one between chuns.
I also got the email this morning, $199 (Rewards Plus).
We have Premier Status as mortgages also with HSBC.
Considering switching everything.
Are Westpac Mastercard cards free with a mortgage?
OB highly recommends the Bendigo Bank Ready Credit Card.
Its now the only remaining credit card with No annual fee and comes with complimentary insurnaces
Slightly confused, does that mean I'll only get charged when my one year is up? (August) or am I charged on March 11th?
Also any suggestions on any card that earns QFF points but had low annual fees?
I understand it to mean August for you.
Thanks, I guess I'll hold onto mine and change closer to date then
You'll forget about it and get charged the fee.
You are the customer HSBC wants—good on you!
@mushroomgod123: I am looking forward to your post complaining that HSBC won't refund the annual fee :)
Are they just trying to fatten the books in preparation for the sale of their Aus retail arm ?
How is HSBC's action 'fattening the books'? The customers will leave.
Yes but the rev per customer will increase
Australian banks, at least as reported in the financial press, are chasing efficiencies through volume and market share. HSBC's move won't assist with this.
Revenue per customer is just one metric. A potential HSBC suitor is unlikely to see any increase, as the business is purportedly being shopped around now.
It's a strange move from HSBC. It might have been better 'migrating' customers to an 'improved' product, or leaving existing customers grandfathered.
Are you aware of the recent speedy and mass exodus from Latitude after it introduced an annual fee?
It was so great that Latitude did a partial U-turn by rebating the fee for some customers.
They're doing some serious cost cutting in 2025 from the looks of it.
https://www.businesstimes.com.sg/companies-markets/banking-f…
Europe’s largest bank told managers last week that its revamp would take until June 2025 to pull off….
executives hope the work will help them shave at least US$3 billion in expenses
Elhedery has already cut the size of his own group executive committee by about a third. Reductions to senior staffers are expected to axe a little over 40 per cent of the company’s top 175 managers, according to one person, who asked not to be identified discussing the situation.I'd wager by the end of 2025 the 2% Everyday Global tap-payment cashback will also be gone too. Citibank lost a lot of it's benefits after it was absorbed by NAB and the same may happen here.
The 2% cashback is a super sweet deal. I've been getting around $300 per year on it.
I've always wondered where the 2% comes from. If it's from credit card fees, then the fees should cover it. I recently asked someone who uses Square about their fees. A flat 1.6%. I swiped my card and got 2% back. Where does the 0.4% come from? Banks aren't famous for giving away free money.
It's a debit card, so no one is paying interest to cover the difference either.
The $2k doesn't need to be kept in there. I deposit $2k and withdraw it the next day. Maybe other people keep it in there so that's where the money is made for HSBC. Still, $2k at 5.5% is just over $9 per month. I average triple that in cashbacks per month.
I keep a couple of hundred dollars in the account and top it up from ING when I need more.
I guess the numbers work for HSBC and overall they make money on the offer, but no one else offers 2% cashback so maybe they're running it as a loss leader to attract customers to other products.
You've cited one data point, one merchant using Square. OK.
The NAB version of the Citibank debit card still boasts NIL foreign exchange fees.
Gotta be the best major bank debit card available.
The Poor NAB customers are now being slugged 3.5% on foreign exchange purchasesI'd wager by the end of 2025 the 2% Everyday Global tap-payment cashback will also be gone too
I agree—the writing is on the wall for the 2% cash back.
This is what happens when the accountants have too much power.
Never got a notification. But I did get my platinum with a fee free for life.
Mine doesn't have the lounge access though, but 199 hmmm that's high.
Chat advised that I'll receive my notice tomorrow.
You need to ask yourself whose life? They probably mean the life of the product :) Maybe your product has been (effectively) killed and you just don't know it yet.
meh, it's just a credit card. Don't know why some people are sensitive about it. If I get the notice, then I've enjoyed the ride. Plenty of other rides to get on.
I'm certainly not sensitive about it (not that you expressly made such a claim).
I have a bunch of other cards. I am, however, annoyed as I only recently opened this account.
I will not reward HSBC with my custom.
I received the email as promised. Short 'n' sweet:
Important change to your HSBC Credit Card Account
Hi [First name],
We are writing to inform you of an important change to your HSBC Premier World Mastercard.What you need to know
The annual fee for your credit card will be changing from $0 to $199. The updated fee will apply from when your next annual fee is due on or after 11 March 2025.We're here to help
If you have any questions about these changes to your HSBC Premier World Mastercard, you can chat with us in the HSBC Australia Mobile Banking app or go to hsbc.com.au/help/contact.Thank you,
HSBC Bank Australia.
what a rip off maybe 100 or 200 ok but 400 from 0 is beyond a joke
I am guessing this is because HSBC is planning on selling its Australian business and they're trying to make the books look better. As someone that has the premier mortgage package and credit card with them, the combined fees (discounted $197.5 package fee plus the new additional $199 credit card fee) will result in myself refinancing away from them and closing everything.
The "premier" banking experience is dreadful, the app is from the 90s, the mortgage rates are pretty bad and now they have an annual fee for credit card. Without the free credit card product, I really don't see why anyone would choose to bank with them anymore.
Anyone know if the package fee is pro-rata?
Wait until people close their accounts, it will make their accounts and customer metrics (products per customer) worse.
I'm not sure you understand how this works.
Increasing the account fees will result in less customers, not more. Potential suitors are looking for more customers and a good quality loan book.
Citi took a different and successful approach, offering wild promotions. NAB ultimately fell for this.
As soon as I receive official notice, I'll be closing my account, just as I did with Latitude. Good luck to those faffing around the edges.
I don't know how it works? Mate, not everything is about customer numbers in the banking world. I am sure that HSBC have done the numbers on how many people they expect to lose versus the ARPC impact.
HSBC is also known to do exactly this - when the US retail division was sold off in 2015, they raised product fees right before it to make the business more attractive to potential buyers.
Happy to give you the benefit of the doubt. Do you have some articles or regulatory filings from HSBC confirming your claims?
HSBC was scammer pradise bank and majority of scam fraud happened through HSBC. They has tighten their internal control and want to get away from low service business and now focus only on premier customer with high networth and reduce staff and cost going forward.
I applied for Bedigo CC in Sept 24 after closing my Latitude CC and my application is still in process I do receive every fortnight SMS notification that my application is in progress. Meanwhile I have submitted all my payslips, mortgage statement, my other CC statement but looks like they too have become selective in approving clean credit history.
HSBC … want to get away from low service business and now focus only on premier customer with high networth and reduce staff and cost going forward
Citation required.
The benefits for Premier customers is basically a nothing burger now that the CC fee has gone up from $0 to $399.
Agreed!
I will definitely be cancelling the card when the fee is due
looks like HSBC is not interested in keeping any customers
Agreed. The fee sends a very clear message that it wants to kill off this product.
I will do the same. Do you have any other card in mind?
Might just have the star alliance card for a yearand continue to wait for something good
I thought I recall seeing it written the card for fee free for life?
Pics (screenshots) or it didn't happen.
Yeah this sucks. Annoying to have to move. And find a new cc with insurance and at least some form of QFF earn for a low fee.
lol - according to their chat, once the account is free of any outstanding payments it will take them 8 days to close the account
Just made the decision to close the account even easier
Yes, I see no reason to hold the account until just before the next annual fee is due. I only opened the account in November 2024.
I'll close the account as soon as I receive official notice (according to chat, this will be sent to me tomorrow via email). Closing the account promptly sends a very clear message.
I'll probably get a Bendigo Bank Ready credit card to replace this one.
Thanks, good to know. I'll be closing it sooner than later in that case.
This makes this card very noncompetitive, it's like they really don't want customers and are deliberately trying to drive them away or something? At least offer Qantas travel credit or something.
AMEX Qantas ultimate beats it in terms of base points earned and you get 100k Qantas points sign up bonus: https://www.americanexpress.com/en-au/credit-cards/qantas-ul…
You pay $450 for it but at least you get $450 in annual Qantas credit. Plus you get 2 Centurion Lounge passes + 2 Qantas Club Lounge passes.
It's not even comparable.
Yes, I have this Amex card too, but feel like it's easier to meet travel insurance criteria for HSBC vs Amex. Also, like some people, have struggled to use the restrictive $450 Qantas credit, and therefore, can't use the Qantas lounge passes.
That is one hell of a jump and I thought 28 Degrees was bad. What benefits does the HSBC card bring?