Warning: 28 Degrees Mastercard Surprise Insurance

So like a lot of ozbargainers i have a 28 degrees mastercard.

Today I checked my email and found a surprise email from 28 degrees. Part of it is below

"We're writing to let you know that you're currently covered by 28 Degrees Platinum Mastercard's Shopper's Protection policy. So you'll be prepared for the unexpected.

You'll remain covered while you continue to pay your monthly premium, until your policy is cancelled or you reach age 65."

Called and cancelled but I can imagine a lot of people not getting this email. Check it out guys, cant hurt to give them a call and check.
There was no way to see it on my online account, i had to call.

Good luck

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28 Degrees Card
28 Degrees Card

Comments

  • +1 vote

    "You'll remain covered while you continue to pay your monthly premium, until your policy is cancelled or you reach age 65."

    Monthly premium?

    •  

      i believe it is 1% of your balance .

      • +7 votes

        Of your closing balance. So if you pay it off before statement date, it's free.

        •  

          Of your closing balance. So if you pay it off before statement date, it's free.

          Could you please clarify?
          So my other CCs have a structure of Scenario 1, as long as the statement is paid off before the due payment date, no interest is paid.
          How does the 28 deg card work? Is it exactly the same, or is it like Scenario 2?

          Scenario 1 - Normal CC
          Day 1, Month 1
          Day 10, Purchase A
          Day 21, Purchase B
          Day 30, Month 1 - statement issued capturing all purchases from Day 1 to 30, says please pay by Day 55
          Day 40 Purchase C
          Day 55 - Pay for A & B
          Day 60 - Month 1 - statement issued capturing all purchases from Day 1 to 30, says please pay by Day 85
          Day 75 - Pay for C

          Result: No interest expenses for late payment
          28 degrees: 1% monthly premium at day 55 for purchase C?

          Scenario 2 - 28 degrees?
          Day 1, Month 1
          Day 10, Purchase A
          Day 21, Purchase B
          Day 30, Month 1 - statement issued capturing all purchases from Day 1 to 30, says please pay by Day 55
          Day 40 Purchase C
          Day 55 - Pay for A & B & C
          Day 60 - Month 1 - statement issued capturing all purchases from Day 1 to 30, says please pay by Day 85 - but closing balance is 0 as day 55 paid for them all
          28 degrees: 1% monthly premium at day 55 as all purchases paid off

          • +1 vote

            @cwongtech: Neither.

            Scenario 1 - with 28 Degrees (how they want you to use it)
            Day 1, Month 1
            Day 10, Purchase A
            Day 21, Purchase B
            Day 30, Month 1 - statement issued capturing all purchases from Day 1 to 30, says please pay by Day 55 + 1% of balance on card is added to statement as insurance fee
            Day 40 Purchase C
            Day 55 - Pay for A & B + insurance fee
            Day 60 - Month 2 - statement issued capturing all purchases from Day 31 to 60, says please pay by Day 85 + add 1% insurance fee
            Day 75 - Pay for C + 1% insurance.

            To avoid fees you need to do below…

            Scenario 11 - with 28 Degrees (how an Ozbargainer uses it)
            Day 1, Month 1
            Day 10, Purchase A
            Day 21, Purchase B
            Day 28, Pay the full cost of Purchase A and B onto card account
            Day 30, Month 1 - statement issued capturing all purchases from Day 1 to 30, because you already paid on day 28 the balance owning is $0. 1% of $0 is still $0 so you pay no insurance fee.
            Day 40, Purchase C
            Day 55, Pay nothing (you already paid on day 28)
            Day 58, Pay the full cost of Purchase C onto card account
            Day 60, Statement issued but once again the balance is $0 so you don't pay for the insurance.

            •  

              @stirlo: I see there's a 95c BPay fee.. any way to avoid it as well as the 1%?
              Since you can't force a direct debit until due date, correct?

              • +1 vote

                @cwongtech: You can log in and "Pay my Account" for free using direct debit before the due date. The only limitation is each payment takes around 3 days and while one is processing you can't do a second one which limits you to using the "pay my account feature to around 10x a month.

                So it's best to just do one payment a couple of days before the statement is generated and refrain from using the card for those couple of days.

                •  

                  @stirlo: Thanks for the info! :)

                  •  

                    @cwongtech: No worries, I’ll also add that you should always pay the sum of your credit limit minus the available credit as shown on the homepage. They won’t let you pay more than what you’ve spent (it’s only possible to pay extra with bpay) however you can pay up to the amount you’ve spent including pending transactions. This is important as if you pay the balance shown then there can be pending transactions which don’t show on the transaction history yet but will be settled to the account prior to statement generation. By looking at the available credit balance you can quickly determine how much you’ve spent including pending transactions.

                    Eg: credit limit $6000
                    Balance: $700
                    Available credit: $5100
                    In this case there’s $200 of pending transactions (6000-5100-700)

                    The Pay My Account system won’t let you pay $901 but you can pay $900 rather than $700 to cover these pending transactions. If you pay $700 then you’ll still pay $2 insurance on those pending transactions.

                    •  

                      @stirlo:

                      They won’t let you pay more than what you’ve spent (it’s only possible to pay extra with bpay)…

                      Not true. I always pay a couple of dollars extra when I do a bank transfer. Never had a problem. I've also added hundreds to the card for a large purchase in excess of the cards normal limit, to take advantage of the insurance on that purchase.

                      •  

                        @endotherm: Ah might have mixed that up with Coles credit Card then… either way make sure you pay for your pending purchases not just the balance…

                      •  

                        @endotherm: Do you pay from the website? Both the app and the website don't allow payment above the balance, except via BPay (which then attracts the BPay fees).

                        •  

                          @say_wat: Using the website, I always pay using "From my bank account", and round up a few bucks to cover any unforseen charges or purchases etc. On a couple of occasions I have added more than my card limit for a planned big purchase. It might depend on the method you use to pay it, it may be restricted by some electronic methods. I'm sure if you posted a cheque for a million dollars it would be credited to the card and not rejected because you overpaid. I think it stems from when people used to load up their card with their own money and went overseas and spent it — they would foot the currency conversion fees but you weren't using their money so they got upset. It might depend on your spending history whether you are restricted by every method.

                    •  

                      @stirlo: 28 degrees doesn't let you pay anything more than the balance via pay my account. Is there any workaround for this?

                      •  

                        @say_wat: It’s weird, I have experienced that too, however after endotherm said I was wrong I tried and was able to pay $10 onto my account when I owed nothing so I’m not certain what conditions must be met but it’s definitly possible in some cases

  • +8 votes

    You might have accepted when you were setting up your online portal. The monthly premium is essentially 1% of your closing balance, so if you pay off your card by the statement date, you get a pretty good insurance benefits for free

    •  

      I have had it for six years and have not touched it for two. If what you say is right then I may have to delete the topic. 1% is less then I was told on the phone.

      • +4 votes

        Ah, well if you dont use the card you don't pay anything I guess, but I agree it is annoying to be signed up for something you didnt agree to in the first place.

        The shoppers protection is 1% of your closing monthly balance, capped at $50p/m. I think all I've ever paid for it since I got the card was under $50, but have gotten hundreds back in claims. This and Coles Mastercard insurance are the best I've seen in terms of coverage and ease of claims.

        Link : https://pds.28degreescard.com.au/product-overview/how-much-d...

  • +3 votes

    I opted in for it.
    I always pay my card off in full before my next statement comes out, so my closing balance is almost 0, so that 1% of 0 is 0.

  • +7 votes

    You definitely want to get this insurance and pay for your technology with it. It's great!

  • +6 votes

    I've gotten back over $1k this month because of shopper's protection. Well worth it.

  • +2 votes

    I love the Shoppers protection insurance! Always paid balance by statement date, so insurance essentially free. Claimed thousands over the last few years (clothes, shoes, bags, electronics, white goods, makeup, and heaps more)

    In fact, the terms of this insurance has improved since October 2018, I will keep the card for as long as they keep this insurance.

    Definitely worth having!

  • +2 votes

    We bought a iphone using this card. For the 1% premium it is now insured for a year for accidental loss or damage. Much better value than any insurance I can buy.

    • +2 votes

      Also price protected so when they announce a new model and the price drops you can claim the difference

  •  

    I'm interested because of the very positive comments.

    How long do you allow for the bank transfer to ensure it's paid off in full before the statement date?

    How do you ensure a prior purchase doesn't suddenly show up on the statement after you have cleared the balance to zero? I assume you stop using the card having paid it off until the statement is issued?

    •  

      I give about 2-3 days if I pay through their portal, but day before if I Bpay ($0.95 fee) as the portal doesn't allow you to pay for the pending purchases. I usually take into account the pending transactions and pay a bit over.

    •  

      The cost is 1% of the closing balance so unless its a large purchase (which you'd hope you're aware of) then the cost isn't that much. Suppose your Netflix bill comes out the day the statement is made. The cost is only 15 cents so it's not a massive concern.

      That said I just use mine to buy expensive items which I want the insurance for and I just avoid buying them in the couple of days before the statement is generated so I don't get any surprises.

  •  

    I've never considered having this cover as I assumed it cost to have it. Kicking myself now.

    •  

      Can't you add the insurance?

      •  

        Yes I've added it now. I'm kicking myself because I could have used it quite alot over the last year as I have made quite a few large purchases (tech, household appliances etc).

  • +2 votes

    You cancelled the best benefit you get from this card, everything else about it is average to mediocre at best, the insurance alone is what makes it one of the best cards you can have. Many people on here have saved hundreds and thousands of dollars using the price protection (recently extended to 12 months at ANY Australian store) and merchandise protection (did I mention there's NO excess?). If I were the OP I'd call up and get the insurance added back ASAP.

  •  

    Well i posted this for the wrong reasons as i thought the cost was much higher. I think it may have worked out because a lot of us have realised 1% is a good insurance policy!

  •  

    You get price protection with Australian sites, does this include Amazon and Ebay? Are all com.au sites covered even if the seller is based overseas and selling in another currency?

  • +2 votes

    If you aren't clearing your balance each month close the damned card anyway.

  •  

    The key thing to remember is to pay before your statement is generated. This means you really have to keep on top of this and adds some overhead to be honest. Cross check when your statements are created, and mark in your calendar a few days before it's due to make the payment.

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