Summary of Bank mecu Low Rate Visa CreditCard advertising at www.australia.creditcards.com

Click on Bank mecu's Low Rate Visa CreditCard under 'Product' in the 2nd column of Low Interest Credit Cards of as shown in the below Print Screen.

You will then see the following information that is provided by www.australia.creditcards.com as also evident in the below Low Rate Visa CreditCard Print Screen:

Company Low Rate Visa CreditCard
Intro Rate N/A
Balance Transfer N/A
Interest Rate 10.74%
Annual Fee $59
Card Type
Visa
Interest Free Days N/A
Late Payment Fee $26
Minimum Repayment $20
Minimum Repayment 2.5%
Card Level Standard

The above summary provided by www.australia.creditcards.com is cunning because it does not inform that the interest rate, which pleasantly surprisingly is the same rate for 'Purchases' and 'Cash Advances' at a low 10.74%, commences to charge on the date of purchase.  Bank mecu is an amalgam of various credit unions and as such has none of its own ATMs.  It uses the NAB network of ATMs.  There is a $3.50 charge each time a Bank mecu customer obtains cash at an ATM which is not listed in the above Screen Print.

If you click on it opens a Bank mecu website page for its Low Rate Visa CreditCard which provides the below limited information as evident on the below two Print Screens:

  • As voted by the AFR Smart Investor Blue Ribbon Awards 2010, the most comprehensive, independent evaluation of Banking, Insurance and Investment products in the market.
  • A unique feature of our VISA Credit Card is that bankmecu promises to never conduct marketing to Cardholders, encouraging them to increase their credit limit or level of spending. We call this socially responsible banking.
  • You can withdraw cash from any ATM in Australia and most ATMs worldwide, pay for purchases using EFTPOS or anywhere VISA is accepted, deposit cash or cheques and withdraw cash at over 2,900 Australia Post shops with giroPost®.
  • Access to your account details at any time of the day or night via the internet, telephone and pay bills from the comfort of your home, work or wherever you have access to the Internet or a telephone.

There is no mention in either the above Bank mecu webpage Low Rate Visa CreditCard or the above www.australia.creditcards.com page for Bank mecu Low Rate Visa CreditCard that you pay a $3.50 fee for each withdrawal, and that interest accrues from the date of the transaction (ie. no interest free period). 

Doubtless, Bank mecu offers an exceedingly competitive interest rate with no margin increase for 'Cash Advances'.  However, when you click on view borrowing fees and charges at Bank mecu webpage of Low Rate Visa CreditCard, you open up a lengthy schedule of bank charges for various mortgage and commercial loans, but no mention of the $3.50 per withdrawal fee or that there is no interest free period. 

I learnt that there was no interest free period and of the $3.50 per withdrawal by phoning Bank mecu on 132.888.

To Bank mecu's credit when it titles its product a Low Interest Rate Credit Card it is telling the truth because the interest rate is low and doesn't increase for 'Cash Advances'.  However, australia.creditcards.com and Bank mecu mislead by not mentioning the hefty $3.50 per withdrawal fee.