2022 was a big year for credit cards, and we are going to look back at some of the news that made 2022 such a big year, as well as what we’re looking forward to in the new year. Before delving into these stories, we want to take the time to thank our readers for making CreditVerse’s launch such a success. We are grateful for an amazing end to 2022 and look forward to educating readers through 2023 and beyond!
Canada’s Credit Card Surcharge
This year, we saw a major change for merchants who accept credit card payments in Canada. A new policy was implemented allowing merchants to charge consumers a surcharge to cover the credit card fees. This means that consumers now have to pay an additional fee when making a purchase with a credit card. Many people argue that this fee had already been factored into the sale price, which means that consumers are being penalized for using a credit card.
One point of debate around this decision is whether merchants will even choose to charge this fee. It could discourage consumers from giving their business to merchants who implement the surcharge, and although it may hinder the value of credit cards, it is unlikely to significantly affect their use.
RBC Purchases HSBC Canada Division
Another major news item was the announcement that the Royal Bank of Canada (RBC), the largest bank in Canada, plans to purchase the Canadian division of HSBC. While the deal has not yet been completed and is subject to approval, there is much to look forward to. For credit card users, we may see a combination of the strengths of both banks to create an even stronger lineup of cards.
New Card Releases and Refreshes
TD Bank completed a full overhaul of their lineup this year, including their rewards cards. The reward and bonus structure changed, which affects different users in different ways. Check out the TD StackUp page to find out about the new bonuses and see if you are eligible for any of these updated cards.
American Express also made some changes this year to their SimplyCash lineup. While the bonus and reward structure did change, the most significant change was the redesign of the card. To learn more about these updates, check out our article on the subject.
A new card was introduced this year, but it was a disappointment. Brim Financial and KLM-AF merged to create what was hyped up to be the ultimate travel card. While it does have some advantages, it did not live up to the hype. To learn more about this flop, check out our article on the topic.
Travel Reward Updates
The long decline of the Air Miles program continued this year as Safeway and Sobeys both dropped the rewards program in favor of their own. The program now has very limited partners for both rewards (travel) and point collection (credit cards), and it may soon come to an end.
Aeroplan also introduced some news with reward changes. Most of these changes make redeeming for travel more expensive. We won’t outline all the changes to the reward table, but the key takeaway is that redeeming Aeroplan points for travel is now more expensive. This could lead to similar increases in prices across other reward programs in the future. It is also possible that we may see a similar effect delivered through a change in the earning structure of reward points, which may be presented in a more favorable light in the media.
What we are Looking Forward to in the New Year
There are many exciting developments to look forward to in the CreditVerse in the new year, but one of the most significant is the continued rise of digital banking. This year, Neo introduced a rewards system dependent on various levels of subscriptions. This is a relatively new concept for credit cards and represents some of the big changes that digital banking will bring to the credit card space. We expect to see more innovative rewards and loyalty programs like this in the future as digital banking becomes more widespread.
Another trend to watch in the new year is the increased focus on specialized credit cards for specific markets. Credit card companies may look to target specific demographics, such as students or small business owners, with tailored products and benefits. This could lead to a wider range of credit card options for consumers to choose from.
Overall, the future of credit cards looks bright, with new technologies and business models emerging to keep up with the changing needs of consumers. We can’t wait to see what 2023 has in store!