Alliance Bank has recently revised the benefits of its Visa Infinite and Visa Platinum credit cards, specifically affecting e-commerce transactions.
Starting June 3, 2024, e-commerce spends that previously earned an unlimited 8X Timeless Bonus Points (TBP) for every RM1 spent will now see a cap at RM3,000 per month, beyond which the earn rate will drop to 1X TBP.
Notably, this new cap is independent of the existing RM3,000 limit on E-Wallet reloads, which also earns 8X TBP.
Understanding the Changes
Previously, the Alliance Bank Visa Infinite and Visa Platinum credit cards offered lucrative 8X TBP on both e-commerce spends and E-Wallet reloads without a shared cap, making them highly rewarding for frequent spenders in these categories.
The new policy introduces a separate RM3,000 cap for e-commerce spends, aligning it with the existing cap for E-Wallet reloads.
While this might seem like a devaluation at first glance, it’s crucial to assess the actual impact based on typical spending patterns:
E-Commerce Spends: The 8X TBP is now capped at RM3,000 monthly. Prior to this, heavy spenders could accumulate a significant amount of TBP with no upper limit. This change might affect those who habitually spend well over RM3,000 in this category each month.
E-Wallet Reloads: This category already had a RM3,000 cap, and it remains unchanged. Cardholders can still earn up to 24,000 TBP monthly, equivalent to about 1,600 Enrich Miles.
Strategizing with the New Caps
Despite the new limitations, the strategy to maximize rewards remains relatively straightforward. Cardholders should aim to max out the RM3,000 cap in both categories to optimize their TBP earnings.
This approach ensures they harness the maximum potential of the 8X TBP rate, accruing up to 48,000 TBP per month combined, translating to significant miles accumulation over time.
Additionally, it’s important to consider the practical applications of these points:
Conversion to Miles: The accumulated TBPs can be converted into airline miles, with 24,000 TBPs roughly equating to 1,600 Enrich Miles, which is significant for frequent flyers.
Effective Cost per Mile: With a cap on spends, cardholders can calculate the exact cost-effectiveness of their rewards strategy, ensuring they are getting the best value for their expenditures.
Final Thoughts
The recent changes by Alliance Bank do introduce new limitations to the Visa Infinite and Visa Platinum credit cards.
However, for those who strategically manage their spending, the cards continue to offer substantial value, particularly through E-Wallet reloads. Rather than viewing these changes as a pure devaluation, they can be seen as a recalibration of the rewards structure, encouraging balanced spending across multiple categories.
As a reminder, the Alliance Bank Visa Infinite continues to dominate RM60,000 annual income range due to the flexibility of its E-Wallet transactions.
The logic here is simple. With a RM3,000 top up on your E-Wallet, you can effectively make payments on any merchant categories using your E-Wallets, as you'll have already earned that juicy 8X TBP from topping up.
In the case of the HSBC TravelOne and UOB PRVI Miles, you receive additional points when swiping your card directly on specific merchant categories, which is not as flexible as the Alliance Bank Visa Infinite.
Given the latest updates, my Enrich Ultimate Guide remains unchanged, with the Alliance Bank Visa Infinite and Alliance Bank Visa Platinum continuing to top the table at each respective annual income ranges.
For the savvy spender, the key will be to adapt spending habits to align with these new caps, ensuring they continue to extract maximum value from their card usage. This strategic approach not only preserves the essence of reward accumulation but also optimizes the benefits received from Alliance Bank’s offerings.