Big-money credit cards offer more happy endings

By SIMON HENDERY

Atul Mathur, New Zealand manager for American Express, tells the tale of how his company saved one of its "platinum" cardholders from a crisis on a cruise ship.

The customer, relaxing on deck with a good book, made a shock discovery which threatened to spoil the holiday - the last two chapters were missing from the novel.

Out came the card and, with a call to the Platinum Concierge Services helpline, American Express staff swung into action. An intact version of the book was found and sent to the cruise ship's next port of call.

This type of service comes at a price and is available only to wealthy and free-spending individuals.

Platinum cardholders pay a $1250 annual fee. But don't bother applying - the cards are issued "by invitation only".

Mathur will not say how many are in circulation in New Zealand, other than that it is a small number.

But what about those who are down a rung or two on the wealth ladder - not on the rich list but wealthy enough to consider a gold credit card passe?

Mathur says American Express identified a gap in the premium end of the credit-card market last year.

It has spent the past six months developing a more accessible platinum card, which it launched yesterday.

The Platinum Membership Rewards Card has an annual fee of $325.



Membership is not as exclusive as Amex's original platinum card, but is still restricted to those with incomes of more than $60,000 a year.

As the name suggests, the new card is being marketed on the strength of its reward programme.

Customers earn at least two airpoint- equivalent reward points for every dollar spent on the card and are offered a range of other benefits, including two-nights-for-the-price-of-one accommodation deals at luxury lodges.

Mathur says New Zealanders have a strong appetite for card reward programmes, probably because our enthusiasm for overseas travel encouraged us to embrace airpoints schemes early on.

Spending through American Express cards has grown 40 per cent in the past two years, driven, the company says, by the introduction of its "Turbo" programme under which, for a fee, standard cardholders can also earn two reward points for each dollar spent.

Mathur says that through the new platinum card, the company's goal is to win 15 to 20 per cent of transactions now swiped through gold cards.

But while American Express pitches for a bigger share of the wallets of the country's wealthy, the company's top-of-the-line card is not available to customers here.

Overseas, a black "Centurion" Amex card is the ultimate in credit-card chic.

It is issued only to those who put more than US$150,000 ($258,000) a year on plastic.

It comes with 24-hour access to a personal concierge and exclusive VIP passes to sports events.

American Express public affairs manager Craig Dowling says the Centurion is not issued in New Zealand, but a number of the cards were flashed around Auckland during the America's Cup campaign when their owners were in town.

They are also seen in Queenstown, an increasingly popular retreat for the world's rich and famous.


Credit card annual fees

American Express

Blue $35

Gold $70

Platinum Mem.ship $350

Platinum $1250

ANZ

Visa/Mastercard $25

Visa/Mstr Gold $80

ASB

Visa/Mastercard $20

Visa/Mstr Gold $80

BNZ

Visa/Mstr/Amex $24

Visa/Mstr/Amex Gold $80

Visa Platinum $450

National

Visa/Mastercard $25

Visa/Mstr Gold $90

Westpac

Visa/Mastercard $25

Visa/Mstr Gold $65