Diners Cuts Cashback Rewards on Extra Home Credit Card by 40% Starting June

Diners Club significantly reduced the cashback accumulation rate on its Diners Extra Home credit card from 5% to 3% starting in June. A customer discovered the change by chance when reviewing her husband's credit card statement, noticing the lower cashback percentage. The card issuer, Cal, claims it informed customers about the reduction nine months prior, as required by law, but the customer said she found no such notification in recent statements and did not receive any SMS or other direct communication.

The Diners Extra Home card offers cashback on purchases at fuel stations, electric companies, telecom providers, and various retail chains. There is also a Family version of the card, which saw an even steeper cashback cut from 7% to 3%, a 57% reduction. This Family card has not been issued since 2019 but still has active users. Despite the cuts, other card benefits remain unchanged, including a monthly cashback cap of 84 shekels and an annual limit of 1,000 shekels, plus perks like 1+1 cinema tickets year-round and discounts on entertainment.

Additionally, Diners used logos of partner companies without their authorization in promotional materials. For example, the fuel company Delek's name temporarily disappeared from the list of merchants eligible for cashback and then reappeared without its logo. Delek stated it was unaware of the use of its trademarks and demanded their immediate removal, emphasizing no commercial agreement exists between Delek and Diners for this card. Cal responded that it operates transparently and complies with legal requirements regarding customer notifications about changes.

The cashback earned on these cards is valid for one calendar year and can be redeemed by converting it into vouchers valid for five years. The cashback reductions come amid a competitive market environment and after Cal lost the Flycard to Isracard, raising questions about the rationale behind the benefit cuts.