News & Views - Savantor

Where should the industry draw the line?

Friday, 14 December 2012

We know that Christmas is supposed to be a time of goodwill to all but it seems that credit card company Creation is stretching this concept to the limit. It has been sending out flyers in the post encouraging customers to withdraw money from ATMs this Christmas, despite the obvious huge cost in doing so.

 

These flyers are encouraging cardholders to "pop down to your local ATM and use the cash facility on your card". The flyer then carries on to say that "You can withdraw up to £300 a day" and suggests that this will "Make this Christmas magical!" Well magical may not be the adjective used when the credit card bill arrives in January.

 

Using a credit card to withdraw cash will cost a cash handling fee of 5% of the amount withdrawn or £5, whichever is greater. The cardholder will also pay interest from the minute the cash leaves the ATM until repayment, as there's no interest-free period for cash advances. The interest rates vary from card to card and from customer to customer depending on credit rating but 20% - 40% is not unusual. The only mention of this in the flyer is in the terms and conditions which state that "Account terms and conditions apply". If the cardholder doesn't want to withdraw the money from an ATM themselves, then Creation will transfer it into the cardholder's bank account for them using a premium rate phone number.

 

Creation issues credit cards for a number of brands including Asda who have denied any knowledge of such communication to cardholders. Other brands include Flybe, Marriott, Maximiles and various football clubs. It also has its own range of branded credit cards. At a time when many are already struggling with the cost of Christmas, this seems like a less than charitable piece of promotion and potentially reflects badly on the rest of the industry at a time when it can least afford it.

Savantor Services

Savantor Services

Savantor services are tailored to Client needs based on our core service areas

Specialist Resourcing Payments Strategy Platform Transition Operational Efficiency
Savantor Services

Job Opportunities

Consulting and contracting roles in the payments, mobile and banking arena within the UK and across Europe

View more
Savantor Services

Savantor Views

Find out more from our Savantor brochures, MarketEye back copies and Industry opinion

Collateral Market Eye News & Views Sign Up to receive MarketEye

Client Quotes

New Payments Initiative

"In moving our new initiative into reality, we required specialist payments knowledge and forward thinking in the retail sector. Savantor supplied this and provided very effective guidance throughout. We enjoyed working with them."

Sophie High, Head of Innovation Delivery - Cancer Research UK

Credit Risk Review for New Product Launch

"We needed expert help at short notice and Savantor were very impressive in their response and knowledge. The results were very clear and useful, enabling us to quickly make good progress on the next steps."

Sami Karhunen, Head of Business Intelligence and SME Sales - Point Transaction Systems Oy - Finland

Payment Specialists

"Working close with Savantor's professionals over the years in the payment arena. I appreciate the skills and knowledge these guys have and will surely engage with them when opportunities arise. The current engagement with Savantor is full to satisfaction and beyond."

Idsert Walta, Head of Banking Categories - Nordea - Scandinavia

Platform Selection

"Savantor's support in our platform selection process has enabled us to sustain our profitability and positioning for the future. Their advice and guidance was essential to our decision-making."

Robert Lambert, Head of Cards Strategy - Permanent tsb bank - Ireland

Interchange Review

"Savantor did a superb job in confirming what we believed was an area of weakness. The detail we now have will enable us to agree internally what we need to do to improve structure, control and income. Nationwide management were very impressed with the quality of the Savantor team."

Adam Slater, Senior Manager - Banking - Nationwide Building Society - UK

Platform Selection & RFP Management

"OP-Pohjola Group has used Savantor in both acquiring and issuing for platform/service provider research, RFI/RFP processes and subsequent contract negotiations. Savantor's approach and commitment have always been very professional and transparent. They have been of great help for the company in providing us important insights and background information beyond vendors sales speeches."

Kai Lindstrom, Head of Acquiring - OP-Services Ltd - Finland

Complex Multi-Country Migration

"This complex migration, undertaken simultaneously in Spain and Portugal, has been a complete success. Savantor has provided us with excellent support for over 3 years, both in the original business transformation programme and now this double migration. We value their open and honest approach to business, and of course the expertise that they bring."

Ricardo Gomez, Director, Operations & Technology - WiZink Bank – Spain & Portugal

Moneris Solutions

"Savantor did an outstanding job of the review and I received nothing but positive feedback on the interaction with our management team."

Jeff Guthri, COO - Moneris Solutions - Canada

Clients - Request Support

Send us a support request and one of our specialists will be in contact to assist you.

Consultants – Upload your CV

Register your CV with us and gain access to a range of job opportunities through our online job search portal.