HSBC corporate credit cards clients cry foul

Friday, 6 May 2016 00:02 - - {{hitsCtrl.values.hits}}

By Shehana Dain

Hong Kong and Shanghai Banking Corporation’s (HSBC) corporate clients have faced an unexpected dilemma due to the bank’s decision to axe off credit card facilities without formal notice, Daily FT learns.

In a bid to migrate its corporate card portfolio from Visa to MasterCard as part of a global approach to have a standardised card offer across markets, the bank supposedly had conveyed the message to its customers that credit cards will be cancelled from 31 May. However sources claim that facilities were terminated since 1 May onwards as a result leaving customers no time for smooth transition to a new facility.

Meanwhile an HSBC spokesperson told the Daily FT that a deadline has not been slated as claimed by certain corporate clients and insisted that the bank will assist its credit card users with the process.

“The transition period for the change is valid until September 2016 and corporate clients have been requested to migrate to MasterCard during this period, the bank will assist them throughout the process. Therefore the bank has not enforced a deadline as stated and will ensure there is a smooth migration with least impact to our clients,” HSBC spokesperson said.

HSBC sources noted that the bank initiated the communication in regard to this change since late April to all existing and active corporate clients who are eligible for a corporate credit card.

The bank also expects that the new MasterCard platform will provide enhanced functionality and provide more control and governance to corporates.