Bank extends Visa credit
Commercial
The Bank of New Zealand will extend the creuit provisions of its controversial Visa card system. I'nder the changes, the Bank of New Zealand will extend free credit to cardholders for up to 55 days ifnd will guarantee cheques for up to 525. The changes will take effect on May 10. The bank's deputy general manager (Mr ’w. J. Shat ) said that consumers
and retailers would benefit from the changes. No extra charge would be mad* on Visa card-holders and the system of commissions which applied to retailers would remain unchanged. Mr Shaw said that it was now appropriate to add the benefits to the system, in view of market surveys, public comment, and the activities of competitor banks. He did not expect the changed Visa card to affect unduly the public inquiry into plastic card systems, set down for June. The changes will mean that a Visa card-holder who wishes to delay payment will not have the purchase appear on his bank statement until the 25th of the next month. In effect, this will give the customer a minimum of
25 days, and a maximum of 55 days, during which time no interest will be charged. The bank's marketing manager (Mr R. E. Mead) said that further credit would be availale for those who arranged special overdraft facilities, on which interest would be charged at 14 per cent a month. Mr Mead said that when the charge was finally put to a customer’s bank statement, it would include the name of the store, to enable it to be cross-checked with a receipt. He said that should the 25th of the month fall on a week-end or a public holiday, items would be charged on the next business day. Mr Mead said that a Bank of New Zealand customer who showed a Visa
card to a retailer in New Zealand and made payment by cheque up to 525 would be guaranteed. The card also enables users to cash a cheque for up to $lOO at any branch of the bank.
“Cheque guarantee will enable merchants c6nfidently to accept cheques for the large volume of transactions under $25. The free credit will provide merchants with an efficient low-cost monthly account service for existing and new customers,” he said. Mr Mead said that the altered Visa card would mean that in spite of a lack of “ready funds,” consumers would be able to buy items without fear of “over-committing themselves.” Public understanding of plastic' cards had progressed a long way and the B.N.Z. was confident that the changes would be welcomed by all people with an increase in Visa card, he said. With continued evaluation of the reaction from card-holders and retailers. further changes could be made in the future.
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Press, 11 April 1979, Page 29
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463Bank extends Visa credit Press, 11 April 1979, Page 29
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