Card industry needed a shake

The Reserve Bank's reforms to the credit card market have sparked more competition and that the industry had needed a “good shake”, Citibank said yesterday. Citibank has responded to the changes as others have by capping reward points and increasing currency conversion commissions. But Citibank's reward points cap is less stringent than those of its competitors with a ceiling of 40,000 to 120,000 depending on the type of card. The bank has also indicated it may introduce a low-interest rate card. Citibank now has about 3 per cent of the Australian credit card market. It has partnerships with RAMS, Wide Bay Capricorn, IMB, Maitland Mutual and Mackay Permanent Building Society for branding, while servicing all aspects of the accounts itself.