PriceSmart, the food and home ware wholesaling club, has advised National Commercial Bank Jamaica Limited (NCB) that use of its Keycard, the only local credit card, will be discontinued as of January 2, 2010.

Customers who called to query the cut are being told by PriceSmart that the membership shopping outfit is offering them a better deal with the Scotiabank/PriceSmart Diamond MasterCard, which comes with a three per cent discount.

"If you apply before December 31 you will receive a $3,000 welcome bonus," said a customer service agent on Tuesday. "We are trying to bring more value to your membership."

Marketing manager of consumer services at NCB, Charmaine Wright, conceded that the local bank has been ousted by the regional strength of its chief rival, though the company in press advertisements on the weekend has been urging its subscribers to tender instead other NCB-issued inter-national credit credits or its Midas branded debit card.

Regional strength

"Scotia has regional strength which we as a local bank do not possess," said Wright. The PriceSmart Scotia card is available in five countries. They have entered into a strategic alliance throughout the region which includes a co-branded card and the POS terminals."

The Scotiabank/PriceSmart Diamond MasterCard debuted in Jamaica in March, following its introduction in Dominican Republic, Trinidad and Tobago and Barbados.

NCB has advised clients that its seven-year relationship with the wholesale club will no longer involve use of its Keycard.

"PriceSmart has recently informed us that the club will no longer accept NCB Keycard for purchases in their stores, effective January 2010, because of an arrangement with another supplier."

Keycard is a product which offers comparatively lower interest rates and a longer repayment period of up to 55 days.

Wright insists that the wider merchant network remains happy with the local card, though there are several Jamaican retailers who do not accept it.

"Keycard is healthy and well and being accepted at 9,000 merchants all over Jamaica," said the marketing manager.

"NCB is also rewarding its credit card customers currently, and is having a promotion, giving one per cent cash back on their purchases made with local credit cards and also double reward points for the Lovebird Keycard."

Wright said as well that NCB remains the leading bank in terms of the number of terminals on the market - a network which the bank has built up in the last two decades.

"We have the most terminals and our merchants are happy," she said.

Member-only benefits

The Scotiabank/PriceSmart Diamond MasterCard which is being pushed by BNS and PriceSmart offers a maximum of US$250,000 in MasterTravel accident insurance and US$50,000 for car rental in the United States, Canada and Puerto Rico, when full rental cost is paid with the card.

But only Price-Smart members will be able to access these benefits.

At its sole Red Hills road branch in Jamaica, Price-Smart members pay US$30 plus tax for diamond membership and US$50 plus tax for business membership, or J$2,700 and $4,500, respectively, at the equivalent spot exchange rates.

The new credit card cost members an additional J$3,305, plus $1,650 per person added to the card.

The new card, offered at a 49 per cent interest rate, has a credit floor of $40,000, for which a qualifying gross salary of $44,000 monthly is needed. Consumers earn two per cent on total purchases up to J$89,000 and three per cent on the total purchases above that figure, but rebates are capped at $40,000 per annum.

avia.collinder@gleanerjm.com