Changes to Tesco Clubcard benefits for credit card users

  • jaffacake's Avatar
    News today that Tesco Bank profits are down 13%, blaming the European cap on card fees. Of course, lower card fees may be one thing, but you don't get any fee at all if people stop swiping their card. Once these Clubcard benefit changes come into effect, I simply won't be using my Tesco Mastercard any more. It's not contactless and no longer will give the rewards I once had. It used to be worth getting it out of my wallet to pay but there is little point if another, contactless, card will do the job with less effort and the same or higher rewards. Protecting profits may be important but protecting your core customer base is also rather critical. No customers, no profits.
  • REgg's Avatar
    Im gob smacked by the changes for spending outside of Tesco. Not worth having 1 point for £8.Tesco Bank will be losing my custom.The points were the only reason I went with them. I could afford some treats with my already, small points I saved using the credit card.I agree with many of the comments here!
  • Phil's Avatar
    I am disappointed with Tesco Bank with its new petty offering. Tesco used to be the leaders on price and innovation. Tesco Bank was supposed to be competitive. But go online and you'll find a lot of better deal available elsewhere. As a Tesco Bank Credit Card customer, you now get a 75% reduction of points spent outside Tesco. Instead of 1 point for every £2 spent, it will now be 1 point for every £8 spent. And 1 point = 1p. Not only that, they don't support contactless or Apple Pay. So there is no point at all. Look at TSB, you get 5% back for spending, or 5% back for saving. And its all contactless with Apple Pay support. Judging by everyone elses post on this forum. Isn't it time you listened to your customers? I used to be a happy Tesco Bank customer, I can't really say I am now.
  • jrh2254's Avatar
    • Sad to say that I have now switched to Amex Platinum credit card now that the clubcard card points offer such poor value.With Amex I enjoy 5% cashback on virtually everything I buy for 3 months, on up to £2,000 in purchases(£100 straight away!). As long as I spend a minimum of £3,000 in a year, almost every full pound I spend qualifies for cashback. After the 1st 3 months I get 1.25 % depending on how much I spend.
    • £0 to £3,500 and receive 0.5% cashback on that spendBetween £3,500 and £7,500, receive 1% cashback on that spendSpend over £7,501 and receive 1.25% cashback on that spendThe only downside is that Amex is not accepted everywhere so I have kept Tesco CC as a back up and I also now have a Halifax Classic credit card for the overseas use as it is fee free.Its things like the loss of the Tesco clubcard points that force you to have a review of things!
  • chaddman30's Avatar
    Supervisor
    As American Express run their own Merchant Services they aren't affected by the EU ruling until 2019 at the earliest. Third party cards (such as those offered by MBNA/Lloyds Bank) may find that rewards on those will be less generous as the EU ruling on Interchange Fees will eventually affect those products. As you say American Express isn't widely accepted by a lot of stores BUT acceptance is growing. However in terms of American Express people like myself who are in low wage jobs won't meet their criteria as our salary is under the minimum they'd consider (i.e. £20,000).
  • markm's Avatar
    Hi, I've not received a letter yet and am a bit confused as to what the in-store clubcard points will be for me. Are they all being set to 1 for every £4? I have had a Tesco Finest World Platinum Mastercard since they were first issued which I think gives me 2 points for every £1 although I can't find anywhere that confirms this online. I know later applicants got a slightly different deal but had been told (admittedly a long time ago now) that these new deals wouldn't affect my original deal. Thanks.
  • PeterC's Avatar
    Like many other contributors to the Community, I have now stopped using my Clubcard Credit Card. Over the past 2 years, my spending (outside Tesco) has averaged £650 per month, and I always settle in full at the end of each month. I therefore use a credit card mainly for the benefit I get from it. So when the provider cuts the benefit by 75% it's obvious that I should look elsewhere. What I find puzzling is that none of the other cards I've looked into have found it necessary to copy Tesco.
  • TutTut's Avatar
    Tesco are not going to give 650 club card bonus that they gave every year for changeing from visa to mastercard. They are driving all custom away from their credit cards. Just aswell do not use for purchases away from Tesco use cashback card now from Barclays.
  • jaffacake's Avatar
    Just a bit of feedback to say I stuck to my plan and have pretty much stopped using my credit card. I still use it for the occasional purchase for which I feel having credit card protection may be valuable but, other than that, I've basically switched to using my Debit Card and also found a new love for PayPal. I used to use my credit card for online purchases as I thought it was a safe way of ensuring I could get a refund if the deal went sour. Turns out PayPal is very good for this and I'm finding it very useful.