Credit Card Beneficial to Car Owners - CompareHero

1
Insights - Credit Cards for Car
Owners
June, 2016

2
1. Definition & Potential Customer Segments
2. Overall Landscape
3. Research Methodology
4. Comparison of Basic Credit Cards
5. Overall Conclusions
6. Actual petrol savings possible
7. Recommendations
Table of Contents
Malaysia’s Leading Financial Marketplace

33
1. Definition & Potential Customer
Segments

4
Definition:
- Cards that offer benefits on petrol or other car-related
expenses
- Typically in the form of cashback or rewards, but could
also be discounts, free insurance or other freebies.
When do we consider a credit card beneficial for car owners?

5
The cards for car owners can be segmented based on income
High income car owners
Low income car owners

7
All cards with car-related benefits are Rewards and / or Cashback cards
Rewards Cashback
6 cards
27 cards
62 cards

8
Credit Cards that offers petrol cashback - by bank
Bank Cards
- Gold Card Mastercard
- You:nique Card
- AmBank CARz Card (Gold /
Platinum)
- AmBank Islamic CARz Card-I (Gold
/ Platinum)
- CIMB Cash Rebate Platinum
MasterCard
- CIMB Islamic Petronas MasterCard
- CIMB Petronas Platinum
MasterCard
- Citi Cashback Card Visa
- Citi Cashback Platinum Card Visa
- Hong Leong Wise Card (Gold /
Platinum)
- UOB One Card
- UOB One Platinum Card
Bank Cards
- HSBC Amanah MPower Visa Card-I
- HSBC Amanah Mpower Visa Platinum Card-I
- Maybank Islamic Mastercard Ikhwan
(Gold/Platinum)
- Maybank Visa Signature
- OCBC 365 Mastercard
- OCBC Great Eastern Mastercard
- OCBC Great Eastern Platinum
- OCBC World Mastercard
- RHB Smart Value Credit Card
- Standard Chartered Just One Mastercard
(Platinum)

9
Credit Cards that offers petrol rewards - by bank (1/2)
Bank Cards
- AEON Classic Card
- AEON Gold Card (VISA /
Mastercard)
- Alliance Bank Platinum Card
- AmBank Cosway Mastercard (Gold
/ Platinum)
- AmBank CARz Card (Gold /
Platinum)
- AmBank Islamic CARz Card-I (Gold
/ Platinum)
- Bank Islam Card-I (Classic / Gold)
- BSN Classic (VISA / Mastercard)
- BSN Classic Credit Card-I (VISA / Mastercard)
- BSN Gold (VISA / Mastercard)
- BSN Gold Credit Card-I (VISA / Mastercard)
- BSN Platinum (VISA / Mastercard)
- BSN Platinum Credit Card-I (VISA /
Mastercard)
Bank Cards
- CIMB Platinum (VISA / Mastercard)
- CIMB Visa Signature
- CIMB World Mastercard
- CIMB Islamic Platinum
- Hong Leong Sutera Platinum Card
- HSBC Visa Card (Platinum / Signature)
- Public Bank Platinum MasterCard
- Public Bank Visa Signature Card
- RHB-MyEG Credit Card
- RHB Platinum Credit Card-I
- Standard Chartered Platinum Card (Visa /
Mastercard)
- Citi Rewards Platinum Card

10
Credit Cards that offers petrol rewards - by bank (2/2)
Bank Cards
- Maybank 2 Cards (Premier / Gold / Platinum)
- Maybank AmEx Card (Gold / Platinum)
- Maybank Manchester United Visa Infinite
- Maybank Visa (Infinite / Platinum)
- Maybank Mastercard Platinum
- Maybankard Manchester United Visa Card
- Maybankard Classic (Mastercard / Visa)
- Maybankard Gold (Mastercard / Visa)
- Petronas Maybank Visa
- Petronas Maybank Platinum Visa
- Maybank Islamic Ikhwan AmEx Card-I (Gold / Platinum)
- Maybank Islamic Ikhwan Visa Infinite Card-I
- Maybank Islamic Mastercard Ikhwan (Gold / Platinum)
- Maybank Islamic Petronas Ikhwan Visa Card-I (Gold / Platinum)

11
Credit Cards that offers petrol rewards AND cashback - by bank
Bank Cards
- Maybank Islamic Mastercard
Ikhwan (Gold / Platinum)
- AmBank CARz Card (Gold/
Platinum)
- AmBank Islamic CARz Card-I
(Gold/ Platinum)

13
This research focuses on cards with exceptional petrol and / or other car-
related benefits
We will lists these
cards, but do not
focus our research
on these cards as
they are not
specifically tailored
to car ownersWe will focus this
research on these
cards as they are
specifically aimed at
car owners
Cards that only offer
benefits for car
related expenses or
cards that offer
higher benefits for
car-related expenses
than other categories
Cards that offer
the same points
or cashback to
petrol as they do
to many other
categories
We have kept separate cards in our research for islamic / generic segments
Removed cards that require special eligibility to register (e.g: UUM-BSN Credit Cards) and that
were clearly targeting other segments such as travel rewards, airmiles, etc

1414
4. Credit Card Comparison

15
1 32
Credit Cards for car owners
Cashback & Rewards Card – Top 15
Hong Long WISE Gold Card
• Up to 10% cashback on petrol.
• Enjoy 10% cashback on the
default Mobile spending
Standard Chartered JUST One
Platinum Card
• 10% petrol cashback with
minimum RM2500 monthly
retail spend (RM700 must be on
petrol spending)
• Low minimum income
requirement (RM 24000 per
annum)
HSBC Amanah Mpower
Platinum Visa Credit Card-i
• 8% cashback with total
monthly spending of
RM2000 and above, capped
at RM 50 per month

16
4 5
Petronas Maybank Visa
• 5x TreatPoints on weekdays & 8x
TreatPoints on weekends for
every spend at Petronas Service
Stations
• No annual fees
• Free Maybankard Touch N Go
Zing Card
Maybank Islamic Mastercard
Ikhwan Gold Card
• No annual fees
• 5% rebate of petrol on Friday &
Saturday
• Low minimum annual income
requirement ( RM 30,000)
• 1x Treat Points for every RM 1
spend on petrol
• Free Maybank Touch N Go Zing
Card
6
Shell-Citi Gold Credit Card
• Up to 8% rebate on Shell fuel
with monthly spending above
RM 2500
• Complimentary annual fees for
the first year

17
7 98
AmBank CARz Platinum Credit
Card
• Up to 5% cash rebate on any
petrol brand transactions
• 1 CARz point for every RM 1
transaction which can be redeem
for auto-related goods & services
• No annual fee
CIMB Petronas Mastercard
• Up to 7% cash rebate on
Petronas spend with minimum
statement balance of RM 3000
• 10% off on NISSAN Genuine
Spare Parts at Nissan TCEAS
Service Outlets
• 10% off on car services at
Perodua Services Centre
UOB One Card
• 2% cashback on weekdays and
5% cashback on weekend.
• Additional 2% if spending at BHP
Petrol under SMART$ rebate
programme.

18
10 1211
Citi Rewards Platinum Card
• 5x Rewards point for every RM1
spend on petrol
RHB Smart Value Credit Card
• Up to 5% cashback on petrol
spending, capped at RM 15
Hong Leong Sutera Platinum
• 1x Reward Points for spend on
weekdays and 3x Reward Points
for spends on weekends

19
13
OCBC Great Eastern Mastercard
• 1% rebate with monthly
spending up to RM 1000, and
0.5% rebate with minimum
spending above RM 1000
• No cap on rebate
1514
Alliance Bank You:nique Cash
• 3% rebate with minimum
monthly spending of RM 3000
• No cap on rebate
Alliance Bank Platinum
Mastercard
• 2x TBP for every RM1 spent
• No expiry date

21
Distribution of cashback rate on petrol spend among cashback cards
10%0 5% 8%
The cashback rate ranges from 1% to 10%. This focuses on how the cards are promoted, and
does not take caps and spending requirements into account.

22
Distribution of rewards points of petrol spending among credit cards
8x0 2x 5x
Most bank offers 1x Reward Points for every RM 1 spend on petrol spending.
This does not take the value difference of points across banks into account

23
• 13% of all cards in Malaysia offers cashback for petrol spending & 27% of all cards in Malaysia offers
rewards points for petrol spending
• In total ~40% of cards offer car-related benefits
• On top of reward points & cashback, other benefits offered include discounts for car services, auto-
related goods, spare parts & others.
• Almost all banks in Malaysia offer cards that target car owners to some extent (except Affin Bank, BSN
& Bank Rakyat).
• Benefits in terms of cashback rate are much more diverse than reward points
• Maybank and Citibank are the only two banks that offer high benefits for both rewards and points
• Hong Leong and Standard Chartered offer highest cashback, while Maybank offers highest rewards for
petrol spend
Key insights from our study
Key Conclusions

2424
6. Actual petrol savings possible

25
Previously, we looked at the cashback rates and reward points per Ringgit spend to determine card
attractiveness
This is in line which how banks market their cards and how consumers perceive them
However, given the wide range of terms & conditions (e.g. caps, minimum spend requirements, minimum
income requirements), we decided to dig deeper.
Because people are also different, we decided to create 4 distinct user profiles:
1. A high volume petrol user, with medium income: this could be a User / GrabCar driver.
2. A high-medium volume petrol user with high income: this could be an executive with a job that
requires a lot of driving, e.g. sales manager, real estate agent
3. A medium volume petrol user: an employee that uses his car daily for home-work travel
4. A low volume petrol user: a person that uses his/her car incidentally, e.g. for groceries, family visits
Methodology
Digging deeper…

26
Profile characteristics
These are the characteristics of the four distinct profiles
Profiles High Medium-High Medium Low Rationale
Usage
Heavy usage for
personal & business.
Pump petrol every 2
days in a week or
more
Medium-heavy users
mainly for work-related
travels. Frequent
travellers.
Average uses, pumps
petrol once a week.
Rare usage for petrol.
Card purpose mainly
for emergency usage.
Petrol usage will
directly impact the
monthly petrol
consumption and
spending
Typical
customer
Uber, GrabCar,
GoGet
Sales Managers,
Property Agents,
Insurance Agents,
Sales and Marketing
Personnels
General Executives
Low income group /
Freelancers. People that
use public transportation
From research on the
petrol usage, we
identify the typical
clusters of customers
that reflect said usage
Annual income >= RM60,000 >= RM120,000 >= RM36,000 >= RM24,000
Annual income is
included as it will be
one of the compulsory
requirements of CC
application
Monthly petrol
consumption
600 500 400 300
These number are
under the assumption
that all petrol
consumption was paid
using CC
Assumed
monthly retail
CC spend
RM2000 RM2500 RM1000 RM500
Monthly retail CC
spending affects the
final amount of
rewards of some cards
Assumed total
monthly CC
spend
RM2600 RM3000 RM1400 RM800
Some cards sets
minimum monthly
spending for the CC
owner to be eligible for
the rewards

27
Monthly benefits
Which are the best cards for each segment, taking caps and T&C into
account?
Profiles Name High Medium-High Medium Low
Maybank Islamic
Mastercard Ikhwan Gold
Card
i) Cash rebate = RM 30.
1
ii) 600 Treat Points
i) Cash rebate = RM 25
1
i) Cash rebate = RM 20
1
Not eligible
Hong Leong WISE Gold
Card
RM 60 cashback
2
RM 50 cashback
2
Not eligible Not eligible
Standard Chartered JUST
One Platinum Card
RM 28 cashback
3a
RM 50 cashback
3b
RM28 cashback
3c
RM12 cashback
3d
HSBC Amanah Mpower
Platinum Visa Credit Card-I
RM 50 cashback
4
RM 50 cashback
4
RM 28 cashback
4
Not eligible
3000 Treat Points
5a
OR
4800 Treat Points
5b
2500 Treat Points
5a
OR
4000 Treat Points
5b Not eligible Not eligible
1. Assumed monthly 10 transactions, with minimum of RM 50 each transaction
2. Assumed petrol spending on Friday & Saturday
3. a) assumed retail spend = RM2000. b) assumed retail spend = RM2500. c) assumed retail spend = RM1000. d) assumed retail spend =
RM500
4. assumed retail spend consist of only groceries
5. a) assumed spending at Petronas only on weekdays. b) assumed spending at Petronas only on weekend

28
Monthly benefits
account?
RM48 cashback on Shell
fuel
RM 40 cashback on Shell
fuel
RM24 cashback on Shell
fuel
RM 10 cashback on Shell
fuel
CIMB Petronas Mastercard RM18 cashback
6a & 6b
RM35 cashback
6a & 6b
RM12 cashback
6a & 6c
RM9 cashback
6a & 6c
AmBank CARz Platinum
Credit Card
i) RM30 rebate
7a
/ RM12
rebate
7b
ii) 2000 CARz point
i) RM25 rebate
7a
/ RM10
rebate
7b
ii) 2500 CARz point
i) RM20 rebate
7a
/ RM8
rebate
7b
ii) 1000 CARz point
Not eligible
UOB One Card
RM6
8a
+ RM 6
8c
cashback
OR
RM 15
8b
+ RM 6
8c
cashback
RM6
8a
+ RM 6
8c
cashback
OR
RM 15
8b
+ RM 6
8c
cashback
RM6
8a
+ RM 6
8c
cashback
OR
RM 15
8b
+ RM 6
8c
cashback
RM 6
8a
+ RM 6
8c
cashback
OR
RM 15
8b
+ RM 6
8c
cashback
Citi Rewards Platinum Card 3800 Reward Points
9
4300 Reward Points
9
2700 Reward Points
9
Not eligible
6. a) assumed spending at Petronas. b) 7% cashback rate as probable statement balance >RM3000 c) 3% cashback rate as probable statement
balance <RM3000
7. a) Transaction paid partially. b) Transaction paid in full
8. a) assumed only spend on weekdays. b) assumed only spend on weekends c) assumed transactions only at BHP Petrol
9. assumed all retail spending under home category

29
Monthly benefits
account?
RHB Smart Value Credit
Card
RM 30 cashback RM 30 cashback RM 14 cashback RM 8 cashback
Hong Leong Sutera
Platinum
600 rewards point
10a
OR
1800 rewards point
500 rewards point
OR
1500 rewards point
Not eligible Not eligible
Alliance Bank You:nique
Card
RM 18 rebate RM 15 rebate RM 6 rebate RM 1.50 rebate
OCBC Great Eastern
Mastercard
RM 3 rebate11 RM 2.5 rebate11 RM2 rebate11 RM3 rebate11
Mastercard
1200 Timeless Bonus Point 1000 Timeless Bonus Point Not eligible Not eligible
10. a) Assumed all spend is made on weekdays. b) Assumed all spend is made on weekends
11) Assumes petrol spend is past the first Rm1,000 and 0.5% cashback is obtained, except for the ‘low’ user, which received a 1% cashback as his
total monthly retail spend stays below RM 1,000

30
For the heavy user of petrol – who does not necessarily has a high salary, the Hong Leong WISE Gold Card, the HSBC Amanah
Mpower Platinum Visa Credit Card-I and the Shell-Citi Gold Credit Card are the most interesting cards, delivering up to RM 60, 50
and 48 per month respectively
Things are also great for the medium to high user, who does have a high salary and spends more on his credit card than the first
segment. Both Hong Leong WISE Gold Card, Standard Chartered JUST One Platinum Card and HSBC Amanah Mpower Platinum
Visa Credit Card-I give RM 50 per month back to these users. These cards are closely followed by the Shell-Citi Gold Credit Card,
which gives back RM 40
If your salary and petrol usages drops further, the Standard Chartered JUST One Platinum Card and HSBC Amanah Mpower
Platinum Visa Credit Card-I still both give RM 28 back, while the Shell-Citi Gold Credit Card gives you back RM 24. Here we would
start to advise to perhaps look at cards that reward for other categories in which you spend more
If you don’t use the car that much and don’t have a high salary – benefits are minimal, typically lower than RM10 per month –
that is, if you are eligible for the card to begin with. The exception is UOB’s ONE card, which can offer benefits of RM 21 if you but
at BHP in weekends. For this segment of users, it makes sense to look out for other categories where they have higher spend and
can perhaps benefit more.
If you are more of a points person, the Petronas Maybank Visa offers 8x points on Petrol spend in the weekends and is only
challenged by the Citi Rewards Platinum Card, which gives 3,800 points for a high user (compared to 4,800 points for a high user
with the Petronas Maybank Visa card.
Conclusions
Conclusions per segment

31
Terms & Conditions for petrol benefits
Appendix: T&C’s
Profiles Name T&C
Maybank Islamic
Mastercard Ikhwan Gold
Card
- Rebates only for spending on Friday and Saturday.
- Rebates capped at RM 50 per customer per month.
Hong Leong WISE Gold
Card
- Minimum 10 transactions per month, with minimum of RM50 per transactions
Standard Chartered JUST
One Platinum Card
- Tier 1: Minimum Retail Spend per month: RM500, Minimum Petrol Spend per month: RM 300, Current
Petrol Cashback: 4%, Petrol Cap: RM12
HSBC Amanah Mpower
Platinum Visa Credit Card-i
- Minimum total spending of RM 2000 per month
- Cashback capped at RM 50 per month.
- Participating Petrol: Shell, Caltex, Petronas
- TreatPoints gained only for spending at Petronas Service Station

32
Appendix: T&C’s
Profiles Name T&C
- Rebate only for Shell fuel spending
- Tier 1: Monthly total spending: RM300 – RM999, Max monthly shell fuel spending eligible for rebate:
RM250, Rebate: 4%
- Tier 2: Monthly total spending: RM1000 – RM2499, Max monthly shell fuel spending eligible for rebate:
RM500, Rebate: 6%
- Tier 3: Monthly total spending: Above RM2500, Max monthly shell fuel spending eligible for rebate: RM800,
Rebate: 8%
CIMB Petronas Mastercard
- Rebate only on PETRONAS spend.
- Tier 1: 3% rebate with statement balance of below RM3000
- Tier 2: 7% rebate with statement balance of RM 3000 and above.
AmBank CARz Platinum
Credit Card
- Rebates capped at RM 80 per card per month with transactions paid in partial
- Rebates capped at RM 20 per card per month with transactions paid fully.
UOB One Card
- Maximum purchase amount entitled for rebates: Up to RM300 per month
Citi Rewards Platinum Card
- Rewards gained only for spending at Shell, Caltex, Esso Mobil, Petronas, BHP& Petron.
- Monthly cap of RM1000.

33
Appendix: T&C’s
Profiles Name T&C
RHB Smart Value Credit
Card
- Tier 1: Monthly Total Spending: RM500 – RM 1500
- Tier 2: Monthly Total Spending: RM1501 – RM 2500
- Tier 3: Monthly Total Spending: More than RM 2501
- Cashback capped at RM 15 per month
Hong Leong Sutera
Platinum
- For comparison purposes, reward points only calculated for petrol consumption only
Alliance Bank You:nique
Card
- Tier 1: Monthly Total Spending: RM0 – RM 1000, Rebate: 0.5%
- Tier 2: Monthly Total Spending: RM1001 – RM 2000, Rebate: 1.5%
- Tier 3: Monthly Total Spending: RM2001 – RM 3000, Rebate: 3%
- Tier 4: Monthly Total Spending: More than RM 3000, Rebate: 0.3%
- For comparison purposes, rebates only calculated for petrol consumption only
OCBC Great Eastern
Mastercard
- Maximum rebate rate is only attainable with monthly spending up to RM 1000
- For comparison purposes, rebates only calculated for petrol consumption only
Mastercard
- For comparison purposes, reward points only calculated for petrol consumption only

35
HSBC
If you are interested to learn more,
I’m always available for a discussion
Mark Reijman | Managing Director
Mobile: +60 178 444 528
Email: mark@comparehero.my
Website: www.comparehero.my
Future Insights studies:
• Travel cards
• Co-branded cards
• Premium cards
• Islamic cards

Credit Card Beneficial to Car Owners - CompareHero

Recommended

Recommended

More Related Content

What's hot

What's hot (20)

Similar to Credit Card Beneficial to Car Owners - CompareHero

Similar to Credit Card Beneficial to Car Owners - CompareHero (20)

Recently uploaded

Recently uploaded (20)

Credit Card Beneficial to Car Owners - CompareHero