Credit Cards

Amazon Mastercard by MBNA

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  • Oct 16th, 2019 11:26 am
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Poutinesauce wrote:
Aug 15th, 2019 11:37 pm
I think Doug is way exaggerating. MBNA serves a segment that TD doesn't, that is, less wealthy customers who need balance transfers and the like. It represents millions of cardholders.

What they stopped caring about is all the people who were looking to use them for rewards and advantages, as in the RFD crowd, hence why they downgraded all their best cards.

It's the exact same thing with Capital One, they worsened all their cards and kept a few because only less wealthy customers who run up interest are profitable.
That re-positioning to serve less affluent customers, I would note, began far before TDCT took over. Bank of America Corp. did this under their ownership such that MBNA/CUETS really became a direct-to-consumer, virtual credit card operation targeting all client segments. BofA and TDCT tightened credit adjudication criteria, eliminated secured/guaranteed credit cards, added and increased fees substantially, and then added World, Infinite, World Infinite Elite Privilege versions of their cards -- all of which target a more affluent market. So I wouldn't say TDCT targets the "less wealthy" customers. Arguably, they are more of an "every man's bank" than some others (i.e., HSBC).

Cheers,
Doug
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Poutinesauce wrote:
Aug 15th, 2019 11:37 pm
I think Doug is way exaggerating. MBNA serves a segment that TD doesn't, that is, less wealthy customers who need balance transfers and the like. It represents millions of cardholders.

What they stopped caring about is all the people who were looking to use them for rewards and advantages, as in the RFD crowd, hence why they downgraded all their best cards.

It's the exact same thing with Capital One, they worsened all their cards and kept a few because only less wealthy customers who run up interest are profitable.
Valid point but I still think something is afoot at MBNA given these changes. As for Capital One they never really downgraded their cards like MBNA did (in favour of grandfathering users) but they've definitely gone for the lower market. Makes sense though, the secured cards are low risk with high reward for the company.
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dmehus wrote:
Aug 16th, 2019 8:48 am
And they've got deep-pocketed owners in Stephen Smith (controlling owner), who holds either majority or controlling minority positions in sizable companies in Canada's financial industry (he is the joint venture partner in Canada's third largest mortgage insurer, after CMHC and Genworth Canada, Canada Guaranty, with the Ontario Teachers Pension Plan; and he is the largest shareholder in both Equitable Group (parent company of EQ Bank) and Canada's largest, non-bank mortgage lender First National Financial Corp. with over $100 billion in assets under administration, and Centerbridge Equity Partners (a PE firm).

Cheers,
Doug
Can I ask, why do you believe that MBNA will be sold? I want to pick your mind :P
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jacnel wrote:
Aug 16th, 2019 11:46 am
Can I ask, why do you believe that MBNA will be sold? I want to pick your mind :P
It may be true or not (I hope it is true as some other banks may rescue this total disaster), but the most bizarre launch of a credit card in Canadian history is definitely present. TD surpassed Brim by a long shot. Face With Tears Of Joy
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Vasyllaw wrote:
Aug 16th, 2019 12:44 pm
TD surpassed Brim by a long shot. Face With Tears Of Joy
How so?
It hasn’t been over 6 month delay yet Face With Tears Of Joy
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canucks4life wrote:
Aug 16th, 2019 1:15 am
There we go time for some lightning deals shopping Grinning Face With Smiling Eyes
Assuming there are sufficient points, does redemption happen automatically on the statement date? I've got enough points for a redemption this cycle and haven't seen the credit on my Amazon account yet.
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Yeah as soon as the current cycle closes you'll see the $20=2000 points auto redemption the points accumulation cutoff date is usually a couple days before close date.
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jacnel wrote:
Aug 16th, 2019 11:46 am
Can I ask, why do you believe that MBNA will be sold? I want to pick your mind :P
It's just a suspicion, a somewhat strong one, based on TD's less focus on credit cards. They've sold or run-off much of their private label credit card portfolio in Canada (it still exists to a greater extent in the United States), but also because of the declining credit card accounts and balances outstanding at MBNA Canada. Through both intentional pruning of both customer accounts and credit card co-branded partners, even though they don't break out MBNA Canada number separately, it's logically assumed that the division represents a much smaller version of itself years ago. :)

At the same time, TD likely wants to prune its credit card operations from a risk management standpoint. As one would expect, in recessions, credit cards are typically the first to experience write offs because (a) people don't want to lose their vehicle or (b) people don't want to lose their home. They've built up a great credit card operation, taking, by some estimates, between 80-90% of the former CIBC Aeroplan customers (CIBC is still a minority partner, but remember they sold 50% of customer accounts and receivables to TDCT and it's quite likely another half their customers, or better, migrated to the technically superior TDCT products).

Cheers,
Doug
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canucks4life wrote:
Aug 16th, 2019 1:15 am
There we go time for some lightning deals shopping Grinning Face With Smiling Eyes
Just got another $60 worth of credits as well. So far, I’m up $80 without any manufactured spending.

Thinking about picking up a 3D printer, so this is great!

C
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dmehus wrote:
Aug 17th, 2019 10:09 am
It's just a suspicion, a somewhat strong one, based on TD's less focus on credit cards. They've sold or run-off much of their private label credit card portfolio in Canada (it still exists to a greater extent in the United States), but also because of the declining credit card accounts and balances outstanding at MBNA Canada. Through both intentional pruning of both customer accounts and credit card co-branded partners, even though they don't break out MBNA Canada number separately, it's logically assumed that the division represents a much smaller version of itself years ago. :)

At the same time, TD likely wants to prune its credit card operations from a risk management standpoint. As one would expect, in recessions, credit cards are typically the first to experience write offs because (a) people don't want to lose their vehicle or (b) people don't want to lose their home. They've built up a great credit card operation, taking, by some estimates, between 80-90% of the former CIBC Aeroplan customers (CIBC is still a minority partner, but remember they sold 50% of customer accounts and receivables to TDCT and it's quite likely another half their customers, or better, migrated to the technically superior TDCT products).

Cheers,
Doug
Ah OK, because to me it seems like TD has pretty much given up on MBNA. They haven't updated their website, online banking is ancient, and the Credit card benefits keep getting cut. I thunk TD will sell but I'm not sure when. I'm hoping soon as we need more competition in this field and a new owner would save MBNA imo.
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canucks4life wrote:
Aug 16th, 2019 3:35 pm
Yeah as soon as the current cycle closes you'll see the $20=2000 points auto redemption the points accumulation cutoff date is usually a couple days before close date.
Just checked, got my redemption today.
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jacnel wrote:
Aug 17th, 2019 12:40 pm
Ah OK, because to me it seems like TD has pretty much given up on MBNA. They haven't updated their website, online banking is ancient, and the Credit card benefits keep getting cut. I thunk TD will sell but I'm not sure when. I'm hoping soon as we need more competition in this field and a new owner would save MBNA imo.
Yeah, wouldn't mind seeing the MBNA brand disappear once and for all under the new owners. That's actually why I think they'll discontinue the affinity and sports cards because the affinity cards catalogue uses a previous iteration of the website and it keeps shrinking. Likewise, I suspect Scotia, already having an NHL sponsorship deal for debit cards, will pick up branding rights for the NHL credit cards. They'll probably pick up CFL while they're at it, too. ;)

Cheers,
Doug
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dmehus wrote:
Aug 18th, 2019 6:16 pm
Yeah, wouldn't mind seeing the MBNA brand disappear once and for all under the new owners. That's actually why I think they'll discontinue the affinity and sports cards because the affinity cards catalogue uses a previous iteration of the website and it keeps shrinking. Likewise, I suspect Scotia, already having an NHL sponsorship deal for debit cards, will pick up branding rights for the NHL credit cards. They'll probably pick up CFL while they're at it, too. ;)

Cheers,
Doug
Don't like the mbna brand? They still exist in the UK so I assume they'll probably continue here.
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I keep seeing that there's been an update on this thread, and come in here expecting to see some conversation about the "Amazon MBNA card"... Perhaps the recent topics could be in their own "TD/MBNA sucks" thread? Just a thought...

C
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jacnel wrote:
Aug 18th, 2019 7:41 pm
Don't like the mbna brand? They still exist in the UK so I assume they'll probably continue here.
MBNA was sold across Canada/USA/UK so they are no longer connected. The brand is kept under a negotiation only, at which the parent company will kill it anytime.

This happens a lot. i.e. Virgin Mobile Canada is no where connected to Virgin Mobile Australia/UK for instance.
Safeway Canada (West Coast) is Sobeys while Safeway USA sold to Albertson's. Again, brand is kept only for a lame reason
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