MBNA credit card upgrade feels like a downgrade

I don’t know about you, but nothing irritates me more than when I have a favourite shampoo, or style of running shoes or credit card, and the company comes out with the “new improved” version which often costs more and delivers less.

So when I opened a letter from MBNA advising me that as a Platinum TravelRewards cardholder, I qualify for an “upgrade” to the MBNA WorldPoints World MasterCard, I was naturally sceptical. And sure enough, although the annual fee ($89) will not change, I quickly realized the potential value of the travel rewards under the new program has been significantly reduced.

My current card awards a point for each dollar spent, and the number of points required to purchase travel is based on how far I plan to travel. For example:

•   15,000 points will buy one return ticket on any airline within the same province or an adjoining province or state.
•  25,000 points will buy one return ticket from Toronto anywhere in continental Canada or the U.S.
•  60,000 points will buy one return ticket from Toronto anywhere in Europe.

Therefore, I can purchase two return tickets on Air Canada to Fort Lauderdale leaving in late December and returning in January for 50,000 points. The cash value of the two tickets (excluding taxes and fees) is $1,892.

When my MBNA Platinum TravelRewards card is upgraded, my existing points will be doubled and I will begin receiving two points for every dollar I rack up on the new card. However, the previous points/miles grid will be eliminated, and instead I will get 1  per cent of the value of the points as a dollar amount I can apply towards the cost of an airline ticket.

In other words, my 50,000 points will become 100,000 points which gives me $1,000 to spend on travel - 1 per cent of the 100,000. But the ticket that was once free buy using points now cost me points plus $892.

Almost two years ago after being frustrated with the difficulties I had booking Air Canada tickets using Aeroplan points accumulated primarily on my Aerogold VISA Infinite card, I researched a number of other travel cards that would offer access to multiple airlines without blackout periods.

I specifically chose the MBNA Platinum TravelRewards card because the points/miles grid was potentially more valuable than the points equated to dollars method of reimbursement offered by most other travel cards with access to multiple airlines.

I understand that the economics of travel may be such that MBNA felt compelled to align the company’s travel rewards more closely to industry norms. However, what really annoys me is that they are trying to pass off this downgrade as an upgrade.

My only consolation is that before the “new, improved” card kicks in, I have enough points accumulated under the old system to book one more free trip for my husband and I to a family event in California.

Also read: Aeroplan adds fuel surcharge to rewards, PC financial forces credit card upgrade and 5 ways to make your Aeroplan miles go farther.


Sheryl Smolkin is a Toronto lawyer, writer and editor. She can be contacted through her website or you can follow her on Twitter @SherylSmolkin.