Mercury Drug-Citibank Card
Here's another co-branded card: the
Mercury Drug-Citibank Card. As you know, co-branded cards are another twist in the credit card business. Credit card companies partner with certain institutions, throw in some special features, and promote the card to a more niche market segment.
Equitable Card has done that with
MTV.
UnionBank has done that with
Slimmers World and
The Pan Pacific.
HSBC has done that with
Philippine Airlines. And, of course, Citibank has done that with
Shell and
Cathay Pacific.
Now, the latest co-branded product is with Mercury Drug, which makes a lot of sense. And from the looks of it, it seems like a compelling offer:
- you get a 2% rebate (as a credit on your card bill) on all Mercury Drug purchases and 0.5% for all else (with a cap of P5,000 for the latter)
- you get special discounts from the likes of Healthway (free annual physical exams plus generous discounts, not bad if you don't have an existing health card), Lifeline Arrows (free emergency quick response service), Medical City (10% off on in-patient bills), Fitness First (waived joining fee and 25% off on monthly dues), and Asian Eye Institute (25% off on LASIK surgery)
- you get the usual Citibank features like PayLite installment plan, One Bill, worldwide acceptance, etc.
- first year annual fee waived (for new Citibank cardholders)
Okay, that's the good part. Here's what you need to consider:
- if you have an existing Mercury Drug "Suki" card, which gives you a 0.5% rebate, getting the co-branded Citibank card gives you just an extra 1.5% (the 0.5% is already included in the total 2%)
- rebates make sense if you make a lot of purchases at the partner institution, in this case Mercury Drug, such that your total rebates are much more than what you'll spend on the annual fee (the first year fee is waived if you haven't had a Citibank card for the last 6 months, in which case, you're already ahead)
- there's typically no reward program for co-branded cards with rebates (the rebate program is already your reward program)
- Citibank is quite notorious for high fees (3.5% monthly interest rate) and aggressiveness (in pushing their cards, approving applications, and collecting)
- we have a bad experience with Citibank on disputed fraudulent transactions due to a stolen card (unfortunately, Citibank won't budge; it's a pity it treats long-time loyal customers in this manner)
- if you have an existing health card with an HMO through your employer or one that you bought for yourself, the Healthway and Medical City promos lose their relevance, though I admit the other give-aways and discounts are appealing
Now, before you think about applying, remember, if you already have 2-3 cards, resist the temptation. Cancel one if you really want this card. And make sure you do need it, i.e. the special features add real value to you.
Otherwise, if you don't spend too much at Mercury Drug, have an HMO card already, have emergency services via your car insurance or motoring club, have gym membership, want a rewards program more, want a lower interest rate, or otherwise don't see enough value, then ignore this product altogether.
