Changes to our Visa Classic credit card conditions of use and fees
We’re making some changes to our Visa Classic credit card conditions of use and fees. These changes will apply to your card from 30 November 2021.
What does this mean for you
We’ve included some further details on the changes below under ‘What’s changing’. Some of the changes will affect your and our rights and obligations.
The changes we’re making don’t affect your current credit limit or the current annual interest rates that apply to your card account. We’re also reducing and removing some of our fees.
We’ve re-written our terms to try to make them easier to read and understand and we’re pleased to have achieved the WriteMark Plain Language Standard. We think the new terms provide you with important information about your credit card in a clearer way — this is one way we’re committed to putting our customers first.
Here’s an overview of the key changes. Some things described below depend on when you received your card. Regardless of whether it is a change or not — the new terms will apply to your card going forward.
Changes to the fees we charge
- We’re removing the late payment default fee and the cash advance fee for both domestic and overseas cash withdrawals.
- We’re reducing the card replacement fee from $15 to $7 and the cost of reprinting a statement from $4 to $1.50 per statement.
- We’re also reducing the foreign currency conversion fee (previously called the overseas service fee) from 2.5% to 2.3% of the NZ dollar value of each foreign currency transaction.
Modernising and making things clearer
- We’ve included some new sections and made some changes to existing sections of the conditions of use that help make things easier to read and understand.
- We’re updating the ways we can contact each other about your credit card. We’re allowing more modern forms of communication to be used, and we’re removing fax as an option.
- We’ve removed all references to your credit card account being ‘secured’ unless you are a business. For non-business customers, it was always the case that we did not rely on security you provided us in relation to other loans for your credit card — for example if you have given us a mortgage, it does not secure your obligations under your credit card.
- As we no longer accept cheques, we’ve removed them as an option for making payments.
- We’ve clarified when you can add someone as an additional cardholder. You are still legally responsible for each additional cardholder as if their card was in your name and you must ensure that additional cardholders comply with all relevant terms.
- We’ve clarified that interest may be charged on fees if they form part of the closing balance of your statement that is not paid in full by the due date.
- We’ve made it clearer that a transaction may be declined if it means you go over your credit limit by removing the previous term that said that as a service to you we may authorise transactions up to 10% above your credit limit.
- The conditions of use no longer refer to a credit limit excess fee, which we no longer charge.
- As we no longer offer credit card repayment insurance, all terms and information relating to this have been removed.
Changes to minimum payment requirements
- We have clarified the method we use to calculate your minimum payment in the conditions of use. We calculate your minimum payment as follows:
- If your closing balance is less than $10, your minimum payment will be your full closing balance for that statement.
- If your closing balance is $10 or more, your minimum payment will be 3% of the closing balance or $10, whichever is higher.
- We will also add any overlimit and/or overdue amount on your card account to your minimum payment.
Changing how some things work
- You will no longer be able to request an increase to your credit limit.
- We’re no longer accepting balance transfers and have removed this feature.
- We’ve made some changes in relation to joint cardholders. Each joint cardholder authorises each other cardholder to do certain things on their behalf — for example, to agree changes to your card contract. You should always get the agreement of the other joint cardholder before you do any of these things.
- Where specific laws require us to give information in writing, you agree we can give that information electronically (including to an email address you’ve given to us). If you have previously notified us that you do not want to receive information electronically, don’t worry — we’ll continue to send you information by post.
Please make sure you take the time to read the new conditions of use and our new Visa credit card rates, fees and limits brochure. It’s important you understand the above and how the new terms might affect you. If for any reason, you’re not happy with the new terms, you can always pay your outstanding balance in full and close your card account.