Under the deal, Westpac will cease to offer its current reward cards that are issued and serviced by Westpac, and instead launch a new range of rewards cards for eligible Westpac customers in early 2018, issued and serviced by American Express.
According to Westpac, recent regulatory changes to credit card interchange fees are partially responsible for the bank’s decision to close its current range of Amex reward cards from April 2018.
Because American Express isn’t directly affected by changes to interchange fee regulations in the same way as Australia’s major banks, the new Amex-issued cards are expected to offer Westpac customers a range of reward options, such as:
- Accelerated reward points earn rate
- Uncapped points
- Complimentary retail and travel insurance
Further details about the new credit card products are set to be announced in early 2018.