NAB makes shock call to destroy one of Australia’s most famous credit cards after 70 YEARS: what you need to know
The once groundbreaking Diners Club credit card will cease to exist from the middle of next month – after almost 70 years in Australia.
NAB will close its Diners Club business in Australia on April 15, less than two years after it bought the local consumer business from previous US owner Citigroup.
Diners Club emerged as a payment card in 1950 after businessman Frank McNamara forgot to bring his wallet to a power lunch at a New York restaurant.
The idea caught on worldwide when the menu was launched in Australia in 1956 and became a staple in upmarket restaurants.
The Diners Club credit card will cease to exist from the middle of next month after almost 70 years in Australia
But from the middle of next month, Diners Club will no longer accept corporate account cards, with accounts automatically closing on April 15 for those without rewards points.
The cut-off date is July 30 for customers with reward points and reward claims for purchases made up to April 15 will be honored until November 30.
Australians buy Diners Club International travel insurance or interstate flight inconvenience insurance must have booked their trip by April 15 and have until November 30 to make an insurance claim for travel arranged before the end of September.
The move comes just over 18 months after NAB bought the rights to the Diners Club Australia business as part of its acquisition of Citigroup’s consumer business in Australia on June 1, 2022.
NAB chief executive Ross McEwan gave few clues about the possible closure of Diners Club in Australia when he announced the impending purchase of Citigroup’s Australian assets in August 2021.
“The proposed acquisition of Citigroup Consumer Business brings scale and deep expertise in unsecured lending, particularly credit cards, which remain an important way for customers to make payments and manage their cash flows,” he said at the time.
A 2022 Reserve Bank report found that Diners Club had the highest merchant fees: 1.7 percent, compared to 1.3 percent for American Express and 0.9 percent for MasterCard and Visa.
From the middle of next month, Diners Club will no longer accept company account cards, and accounts will be automatically closed on April 15 for those without loyalty points
NAB, Australia’s largest business lender, will close its Diners Club business on April 15, less than two years after it bought US bank Citigroup’s consumer business in Australia