Credit Card Rewards

The Hong Kong Shanghai Banking Corporation Limited (hereinafter"HSBC" ) is introducing the"2008 Rewards" Bonus Points Accumulation Programme (hereinafter"This Programme" ) to reward the primary cardholders of HSBC credit cards. Under the following procedures, the primary cardholders of HSBC credit cards are able to make a redemption/combination purchase of the bonus products listed in attached Table 1 using bonus points accumulated from their credit card purchases or convert such points into mileage (together with the above, hereinafter"Reward Item" ):

Participation Eligibility

• HSBC's Primary cardholders of Visa/Master Gold, Classic, Platinum, Premier, Co-brand, Business cards issued in Taiwan and with NTD-denominated payments (hereinafter"Programme Credit Cards" ) are eligible to participate in this programme. Primary or supplementary cardholders of other types of credit cards (Corporate card) issued by HSBC in Taiwan are not eligible.
• Supplementary cardholders of Programme Credit Cards are not eligible to participate in This Programme; redemption/combination purchase/conversion shall be done on their behalf by primary cardholders. Bonus points accumulated by supplementary cardholders will be automatically combined with bonus points of the primary cardholder.
• Redemption/combination purchase/conversion of Reward Items by the primary cardholder is void under the following conditions:
  (1) Suspension or termination of Programme Credit Card held by the primary cardholder
  (2) Violation of the HSBC credit card agreement or these procedures
  (3) Failure to pay the minimum payment of the most recent statement and other agreed items payable

Primary cardholders subject to any of the above conditions lose eligibility to participate in This Programme. Points accumulated by such cardholders and their supplementary cardholders, shall also be cancelled immediately. If any of the conditions take place after application for redemption/combination purchase/conversion of Reward Items by the primary cardholder, HSBC reserves the right to refuse such application. Where the primary cardholder subject to (3) of the above settles all payable items (including collection costs and other related expenses etc), he/she may continue to participate in this programme with the consent of HSBC. Under certain conditions, HSBC may recover the points accumulated by the primary shareholders and/or points accumulated during the period of non-eligibility.

Top

Bonus Points Effectivity

Effectivity of the bonus points accumulated is the same as effectivity of the Program Credit Card. Bonus points accumulation begins on the statement date of the month of credit card effectivity and ends on the statement date of the month after credit card expiration; the number of points accumulated is as indicated on HSBC systems. Bonus points earned but not redeemed before expiration will be cancelled upon expiration of the bonus points; the primary cardholder may not request for the redemption of any of the Reward Items or conversion of bonus points into cash or other forms of payment after expiration of the bonus points. Where the primary or supplementary cardholder receives a renewal and a new card upon expiration of the old card, bonus points will begin accumulation from zero into the primary cardholder's bonus points balance.

Top

Bonus Points Accumulation

• Each time the primary/supplementary cardholder makes a purchase using Programme Credit Cards; one bonus point is awarded for every NTD 25 of the purchase, which can go toward the redemption/combination purchase/conversion of Reward Items.
• Bonus points accumulation for amounts purchased by the primary and supplementary cardholders shall be calculated separately before combination into the primary cardholder's bonus points balance.
• Where the primary/supplementary cardholder may hold more than one of the Programme Credit Cards, points accumulated on each card shall be calculated separately.
• Where the primary cardholder wishes to convert bonus points into air mileage, he/she must first register with the"HSBC Mileage Reward Programme" and the number of points for each instance of conversion application must be over 2,000 points.
• Where the primary/supplementary cardholder receives a refund for purchases made on the Programme Credit Card for product returns (or any other reasons) or due to purchase disputes, HSBC shall make a deduction of the points earned previously on the refunded amount.
• Unless the primary cardholder can prove an error, the number of points accumulated shall be based on what is indicated on HSBC systems.

Top

Purchases Eligible for Bonus Points Accumulation

Purchases made by primary/supplementary cardholders other than for the payment of the following items are eligible for bonus points accumulation:

(1)Annual fee, replacement fee (2)Revolving interest (3)Cash advances (4)Cash advance fees and interest (5)Fees from delayed payment (such as late fees) (6)Other credit card related fees (7)Purchase protection insurance premium (8)Purchase of mutual funds

Top

Bonus Points Usage

The primary cardholder may not transfer bonus points to any other third party. The bonus points can be used solely for the redemption/combination purchase/conversion of Reward Items, the primary cardholder may not request cash conversions or redemption of items other than the Reward Items.

Top

Redemption Procedures and Guidelines

• This Programme is effective from May 1, 2008 to March 31, 2009 (hereinafter"Programme Period" ); however, HSBC reserves the right to shorten or extend the Programme Period by written notification or announcement.
• The primary cardholder may apply for redemption/combination purchase/conversion of Reward Items during the Programme Period; however, the primary cardholder may not request for an alteration to the reward item, or a cancellation of the application and recovery of the bonus points once an application has been made.
• Each Reward Item has a specific redemption/combination purchase/conversion period; application for redemption/combination purchase/conversion of an item will not be accepted after its redemption/combination purchase/conversion period.
• 4. HSBC will select specific bonus products as Reward Items during the course of This Programme and send catalogues containing such information to the primary cardholder.
• For combination purchases of bonus products listed in Table 1 (the purchase amount payable is subject to reduction due to seasonal factors or manufacturer promotion), the purchase amount payable shall be paid with the applicable Programme Credit Card.
• There shall be no returns on redeemed bonus products from Table 1 unless the product is defective or has been damaged during delivery. Cardholders who have received such defective products shall contact HSBC customer representatives regarding product exchange within 14 days from the day after the day of product receipt. The primary cardholder must retain the original packaging, operation manual, and warranty of the applicable bonus product and return the product to HSBC or other designated parties at the instruction of HSBC customer representatives.
• Bonus products from Table 1 purchased under the combination purchase scheme may be returned within 7 days from the day after the day of product receipt. The primary cardholder must retain the sales receipt, original packing, operation manual and warranty of the applicable bonus product and return the product to HSBC or other designated parties at the instruction of HSBC customer representatives.
• Application for the redemption of bonus products is deemed as consent for HSBC and suppliers of Reward Items (hereinafter,"Participating Supplier" ) to use and digitally process the personal information registered.

Top

Special Regulations for Reward Items

• The quantity of bonus items listed in Table 1 is subject to market supply availability, where there is a shortage in supply, HSBC may replace the item with a bonus item or service of the same value or suspend the redemption/combination purchase of such item.
• HSBC reserves the right to alter Reward Items and Participating Suppliers of This Programme.
• There is a two to three week processing period after HSBC receives application for redemption/combination purchase for bonus products in Table 1 from the primary cardholder. The bonus products will be sent to the primary cardholder from HSBC or the Participating Supplier; where the Participating Supplier fails to deliver the bonus products within the aforementioned processing period, HSBC shall assist the primary cardholder in settling such situation with the Participating Supplier. However, HSBC does not assume any responsibility for delays during delivery.
• Where the bonus product from Table 1 redeemed is travel, hotel accommodation or dining vouchers, the primary cardholder must comply with the rules and regulations of the Participating Supplier (including but without limitation to special restrictions, periods of non-validity and exceptions, etc.). The primary cardholder shall also make all related travel and accommodation arrangements on his/her own. The primary cardholder's receipt of travel or hotel accommodation vouchers does not constitute reservations for travel or hotel accommodation; the primary cardholder must take personal responsibility in making all relevant reservations with the Participating Supplier.

Top

Mileage Reward Programme Regulations and Calculation Method

• Before the primary cardholder can apply to convert bonus points to airline mileage, he/she must complete an application to join HSBC's" Mileage Reward Program" (hereinafter,"Mileage Programme" ) regardless of whether he/she is already a member of"Asia Miles" or Singapore Airline's"Kris Flyer" programme. The Mileage Programme is a reward plan offered with the cooperation of Asia Miles and Singapore Airlines with HSBC; joining the Mileage Programme constitutes joining"Asia Miles" or Singapore Airline's"Kris Flyer" programme.
• After becoming a member of the Mileage Plan, the primary cardholder may apply to convert a minimum of 2,000 bonus points, each bonus point can be converted to 0.5 miles (1mile=1.68 Km).
• The bonus points can only be converted and transferred to the Mileage Programme mileage account of the primary cardholder and are not transferable to any other third party.
• There is a processing period of a minimum of 4 weeks after HSBC receives the primary cardholder's application to convert bonus points to"Asia Miles" or"Kris Flyer" mileage. The primary cardholder is advised to apply for conversion early to avoid delays in ticketing.
• When applying for conversion of bonus points to"Asia Miles" or"Kris Flyer" mileage, the primary cardholder must comply with the rules and regulations of the respective airlines. HSBC assumes no responsibility in affects to the rights of the primary cardholder due to changes made by the airlines regarding the"Asia Miles" or"Kris Flyer" programme after an application to convert bonus points to"Asia Miles" or"Kris Flyer" mileage has been submitted by the primary cardholder.
• For details regarding Singapore Airline's"Kris Flyer" programme or"Asia Miles" , please refer to the member's book of"Kris Flyer" and the member's manual of"Asia Miles" , respectively. Changes to the"Kris Flyer" or"Asia Miles" programme shall be congruent with the latest announcement by the respective airlines.

Top

Legality and Taxation

• Suppliers of the Reward Items are Participating Suppliers and there are no partnership, distribution, sales agency or guarantor relationships between HSBC and such Participating Suppliers. HSBC takes no part in the sales matters of the Reward Items supplied by the Participating Supplier. Where there is a dispute between the Participating Supplier and the primary cardholder or a third party regarding the sale/supply of a Reward Item, the Participating Supplier must take measures to resolve the matter and HSBC assumes no such responsibility.
• Where the primary cardholder holds bonus points not accumulated from purchases, the deduction of bonus points during Reward Item redemption shall take the following order: deduct from (1) bonus points accumulated from competition or draws, (2) bonus points from new member referral, (3) bonus points from purchases.
• Bonus points accumulated from competition, draws or new member referral are deemed as income from competition and chance winnings and are subjected to taxation under taxation laws; the primary cardholder shall assume responsibility for payment of all such taxes. Where HSBC shall withhold such taxes under law, the purchase price of the Reward Item redeemed by the primary cardholder shall be used as the basis for taxation. The withholding amount will be charged to the primary cardholder's credit card and the primary cardholder agrees to pay such amount in full. HSBC shall issue a withholding statement after the end of the fiscal year.

Top

Amendment and Suspension

HSBC reserves the right to amend, suspend or terminate This Programme, these procedures and the contents of the attached"2008 Rewards," such action shall become effective after announcement on the credit card statement, notification to all concerning cardholders, or announcement at HSBC branches. Items not specified for This Programme shall comply with HSBC's credit card agreement and applicable laws.

Top