Many credit providers create partnerships with companies to offer their customers a discount on certain goods and services. Credit card partner discounts are common in the service space, such as car rentals, airline tickets and hotel bookings.
Large credit providers may also have partnerships with big corporations like airlines to give cardholders a range of benefits. These benefits can include reduced booking fees, priority seating and other inflight perks.
How do you find credit cards with partner discounts?
RateCity provides product information on many of Australia’s major banks and credit lenders. Credit card information and comparison tools can be found on the credit card page.
For a full overview of a credit card, click through to the product page. A list of credit card partners should also be available on credit card providers’ websites.
Why do credit cards offer partner discounts?
Credit cards offer partner discounts as a way of giving customers extra value with their cards. A customer who travels a lot may be tempted by a card that offers partner discounts on flights, hotel rooms and car hire. These discounts do not come without their costs, so it is important to check the credit card’s annual fee before applying.
Credit cards also offer partner discounts as a way of incentivising spending on the card. It is common for customers to have to present and use the credit card to receive the partner discount. When a credit provider can offer a wide variety of partner discounts, it becomes a good way to encourage spending on the card.
It is important that consumers consider how beneficial partner discounts will be before applying for the card. Often these cards can come with higher annual fees and higher interest rates.
What are the pros and cons of credit cards with partner discounts?
A positive aspect of credit card partner discounts is that they can help cardholders save money on services they were already planning to purchase. Many cards provide partner discounts for practical services that are easy for the average consumer to take advantage of, such as airline tickets, car hire and hotel room bookings.
A downside of credit card partner discounts is that they encourage consumer spending, sometimes on non-essential items or on items consumers were not planning to buy. In situations like these, consumers are not actually saving money, they are just spending money to obtain the discounts – in effect, ‘buying’ discounts. As well as this, even though partner discounts are advertised as free perks, cardholders are usually paying for these perks in the form of a higher annual fee.
What other perks do credit cards offer?
Other perks available on credit cards include free travel insurance, bonus points, extended warranty, and accidental damage and theft cover.
Much like cards that provide partner discounts, these added benefits are usually paid for in the form of a higher annual fee compared with basic low-rate cards without the frills.