I received a notice with my last OCBC credit card statement that they are revising the cash back rate from five percent in selected categories (and one percent for everything else) to a flat one percent for everything. As part of the change, they removed the cap of RM 50 per month cash back. What is not mentioned in the announcement was whether they are changing any other benefits for the card. The bank also removed another benefit of reimbursing the GST with an annual spending of RM10k and above.
Based on what I read on the Facebook page for OCBC, many customers are not happy with the change. Several customers threatened to cancel the card and encouraged others to do the same.
Based on my spending, the cash back will be substantially lower since my monthly cash back is well below the RM 50 limit with very few exceptions. However, based on what I know about other cards, the cash back is still one of the best in the market. Many of the other cards provide higher return but has terms and conditions.
One option for getting a higher cash back is to upgrade to their World MasterCard which has a 1.2% cash back rate. However, that card comes with a RM388 annual fee (waived on the first year). The additional 0.2% cash back will not be enough to offset the annual fee.
Although I am disappointed with the changes, it is expected, I have seen reduction of cash rebates by other companies as well, the last one was Smiles loyalty card. The deal was just too good to maintain.