CREDIT CARD LOYALTY SCHEMES VERY POPULAR AND PROVIDE FAIR VALUE FOR MONEY OR BETTER, ‘CHOICE’ MAGAZINE SURVEY Sydney, 9 October, 2001: The Australian Bankers’ Association (ABA) says the ‘Choice’ magazine survey confirms that credit card loyalty schemes are very popular and provide to consumers fair value for money. David Bell, Chief Executive of the Australian Bankers’ Association, said: “The majority - 74% of ‘Choice’ readers surveyed - believe that loyalty programmes provide fair value for money or better. “The popularity of these schemes is also highlighted as 80% of ‘Choice’ readers surveyed have a loyalty programme linked to their credit card.” Mr Bell said more importantly, this survey also confirms bank research that the vast majority of bank customers are using their credit cards safely and responsibly. “Of the ‘Choice’ readers surveyed – 75% pay off the entire balance each month and that figure rises to 85% for those over the age of 55.” The survey also found strong resistance to the ACCC & Reserve Bank mooted proposal to allow merchants to charge higher prices to consumers who use credit cards.  Mr Bell said, “This is an important finding that the Reserve Bank should take into consideration in its inquiry into the Australia’s credit card market, ”Mr Bell said. While welcoming the Choice survey findings, Mr Bell said care should be taken in interpreting the results. “Concerns were expressed to ‘Choice’ about the survey methodology before its publication, and consumers should not depend upon these findings to make decisions about the value or otherwise of using a credit card.” “A consumer should take many factors into consideration (not only features like loyalty schemes) when making a decision to apply for a credit card, including personal usage patterns, ability to repay outstanding credit and the interest-free period.” For Further Information Contact:   Heather Wellard ABA PR Phone: 02 8298 0411 Mobile: 0409 830 439   ENDS