Is your credit card about to become obsolete? NAB announces closure of Diners Club
- Replies 10
Diners Club has been a well-known credit card company for over seven decades, providing financial flexibility and prestige to many consumers.
Despite the evolution of consumer spending, from imprinters to contactless transactions, this credit card has stood the test of time.
However, following its recent acquisition, National Australia Bank (NAB) announced the decision to close its Diners Club business in the country.
This decision came as a shock to both the financial sector and its loyal customers.
The Diners Club introduced their charge card in 1950 after a businessman named Frank McNamara forgot his wallet while having lunch at a prestigious New York restaurant.
The idea rapidly gained popularity worldwide and has since transformed the way individuals pay for products and services.
In 1956, the card was introduced in Australia and soon became a common sight in high-end restaurants.
But after 70 years of operation in the country, Diners Club will no longer be available. Starting April 15, Diners Club will no longer accept corporate account cards.
According to NAB, accounts with no reward points will automatically close on that date.
The closure date for customers with reward points is July 30, and reward claims for purchases made until April 15 will be honoured until November 30.
Moreover, travellers who purchased Diners Club International Travel Insurance or Interstate Flight Inconvenience Insurance must book their travel by April 15.
Any insurance claims for trips arranged by the end of September must be submitted by November 30.
The decision was made about 18 months after NAB acquired Diners Club Australia as part of its purchase of Citigroup's consumer business in Australia on June 1, 2022.
NAB's CEO, Ross McEwan, gave little indication of the potential closure of Diners Club in Australia during the announcement of the upcoming acquisition of Citigroup's Australian assets in August 2021.
He said at that time: ‘The proposed acquisition of the Citigroup Consumer Business brings scale and deep expertise in unsecured lending, particularly credit cards, which continue to be an important way for customers to make payments and manage their cashflows.’
According to a 2022 report by the Reserve Bank, Diners Club has the highest merchant fees at 1.7 per cent, which is higher than American Express at 1.3 per cent and MasterCard and Visa at 0.9 per cent.
If you are one of the affected customers, please get in touch with NAB directly for any inquiries related to the closure.
What do you think about this closure, members? Are you a Diners Club cardholder? Share your thoughts in the comments below.
Despite the evolution of consumer spending, from imprinters to contactless transactions, this credit card has stood the test of time.
However, following its recent acquisition, National Australia Bank (NAB) announced the decision to close its Diners Club business in the country.
This decision came as a shock to both the financial sector and its loyal customers.
The Diners Club introduced their charge card in 1950 after a businessman named Frank McNamara forgot his wallet while having lunch at a prestigious New York restaurant.
NAB announced the closure of Diners Club in Australia. Image source: Shutterstock
The idea rapidly gained popularity worldwide and has since transformed the way individuals pay for products and services.
In 1956, the card was introduced in Australia and soon became a common sight in high-end restaurants.
But after 70 years of operation in the country, Diners Club will no longer be available. Starting April 15, Diners Club will no longer accept corporate account cards.
According to NAB, accounts with no reward points will automatically close on that date.
The closure date for customers with reward points is July 30, and reward claims for purchases made until April 15 will be honoured until November 30.
Moreover, travellers who purchased Diners Club International Travel Insurance or Interstate Flight Inconvenience Insurance must book their travel by April 15.
Any insurance claims for trips arranged by the end of September must be submitted by November 30.
The decision was made about 18 months after NAB acquired Diners Club Australia as part of its purchase of Citigroup's consumer business in Australia on June 1, 2022.
NAB's CEO, Ross McEwan, gave little indication of the potential closure of Diners Club in Australia during the announcement of the upcoming acquisition of Citigroup's Australian assets in August 2021.
He said at that time: ‘The proposed acquisition of the Citigroup Consumer Business brings scale and deep expertise in unsecured lending, particularly credit cards, which continue to be an important way for customers to make payments and manage their cashflows.’
According to a 2022 report by the Reserve Bank, Diners Club has the highest merchant fees at 1.7 per cent, which is higher than American Express at 1.3 per cent and MasterCard and Visa at 0.9 per cent.
If you are one of the affected customers, please get in touch with NAB directly for any inquiries related to the closure.
What do you think about this closure, members? Are you a Diners Club cardholder? Share your thoughts in the comments below.
.png){kind=icon}
