Credit Card Decline and Unseen Travel-Related Changes Taking Place
Why the string of “reforms” ……?
In the first place, Japanese credit cards offer too many benefits,” says Kenji Matsuoka, a money writer and expert on the credit card market.
Kenji Matsuoka, a money writer and an expert on credit cards, says this.
With the emergence of no annual fee cards, even gold cards, the main source of revenue for credit card companies has become merchant fees generated from purchases and meals at merchants. However, with the rise of e-money and QR code payments, those fees, which used to be in the 3% range, now seem to be in the 2% range.
In order to remain competitive, each company cannot lower the point redemption rate, so the trend is toward having no choice but to scale back other benefits.”
Travel, in particular, is closely associated with credit cards. Many people actually pay for hotels and airline tickets with credit cards because of the large amounts involved. While there are numerous credit cards, many credit card companies offer more generous travel-related services, and a travel-related deterioration can be a major blow to travelers.
A series of [Priority Pass] rule changes. The reason for this is ……
One of the hottest topics among travelers these days is the change in the rules for using Priority Pass, which allows access to lounges and food and beverage outlets at airports in Japan and overseas.
Priority Pass is a service that comes with some higher tier cards. The Rakuten Premium Card, which has an annual fee of 11,000 yen, is particularly well-known for its Priority Pass benefit, which allows unlimited use of lounges.
However, it was announced in November 2011 that the number of times Priority Pass can be used free of charge will be limited to five times per year, starting in January 2013, and that a fee will be charged after the sixth use (US$35 = approximately 5,000 yen). I have been holding Rakuten Premium Card for Priority Pass for many years, and I have to admit that this is a painful blow to me.
In early September 2012, JCB and Mitsubishi UFJ NICOS also announced a series of changes to the Priority Pass service, with JCB changing the Priority Pass service to lounge facilities only in Japan, not to restaurants offering meals, etc., effective October 31, 2012. (Overseas, the same as before). Mitsubishi UFJ NICOS limited the use of Priority Pass to airport lounges only from October 1 of the same year, and stated that a fee may be charged for use at restaurants and other establishments.
A meaningful statement was posted on the official website of Mitsubishi UFJ NICOS at the same time as the service change. The use of Priority Pass at airport food and beverage outlets, refreshment facilities, etc. has increased significantly in recent years. As a result, the costs associated with this service have increased, and we may not be able to continue to offer this service. Moreover, the posting of the message just over a month after the announcement of the service change has led to rumors that the company may be under considerable pressure.
