Changes to Tesco Clubcard benefits for credit card users

  • JamieJ's Avatar
    Former Community Manager
    Over the next two months we’ll be writing to everyone who has a Tesco Bank Credit Card to let them know about some changes taking place in the credit card industry which will affect the amount of Clubcard points they receive when they use their card.

    The industry changes mean that the income which banks receive from businesses who accept credit cards is reducing. At Tesco Bank, we use that income to contribute to the cost of running our credit cards – including the Clubcard benefits we provide.

    If you have a Tesco Bank Credit Card, when you use your credit card in a Tesco store you will continue to receive the same number of Clubcard points as you do currently. However, to reflect the industry changes, the amount of Clubcard points you earn when you use your card out of Tesco is reducing to one point for every £8 you spend*.

    You don’t need to do anything and can carry on using your card as normal. The changes won’t take effect until later this year and we’ll be writing to you in the coming weeks to give you more details.

    In the meantime, we’ve tried to answer as many of the key questions below. If you have any further questions please let us know.

    Why are these changes happening?
    Earlier this year it was confirmed that the income banks receive from businesses each time a customer pays with a credit card is being reduced. You may have read in the press that a number of other credit card providers have already amended their cards as a result of these industry changes. At Tesco Bank, we use this income to contribute to the cost of running our credit cards – including the Clubcard benefits we provide.

    How many points will I earn when I use my Credit Card in Tesco?
    When you use your credit card in a Tesco store you will continue to receive the same number of Clubcard points as you do currently. This also applies to any spend at Tesco Direct, F&F clothing, Tesco wine by the case and Tesco Filling Stations (excluding Esso Stations).

    If you have a Mastercard World or Visa Platinum card there will be a reduction to the Clubcard points you currently earn when you use your card at Tesco.com, however, for all other cards the amount of points you earn when you spend on Tesco.com will remain unchanged.

    How many points do I currently earn when shopping out of Tesco?
    The amount of points you currently earn when you use your card out of Tesco will vary depending on the type of card you have. Going forward, however, for all our cards you will earn 1 point for every £8 spent when you use your card out of Tesco*.

    When will the changes take effect?
    The changes will take effect later in the year. The exact date will be made clear in your letter as it will depend on the type of card you have.

    Will this affect the points I collect with my Tesco Bank debit card ?
    No. Your debit card will not be affected as a result of these changes.

    Why haven’t you written to me to tell me that this change is taking place?
    We will be writing to all of our credit card customers over the coming months to let them know that this change is taking place. All credit card customers will get advance notice of the change.

    Is there a deadline for redeeming my vouchers?
    You can continue to redeem your Clubcard vouchers as normal. In line with the Clubcard conditions your vouchers will be valid for two years.

    Is the value of my current Clubcard points going to change?
    No. The value of the points that you have already collected will remain the same.

    Will you be making any future changes?
    We do not plan to make any further changes to the Clubcard points you receive.

    *1 point for every £8 spent (£8 minimum) in each purchase transaction. Must have available credit to collect points. The Clubcard Scheme is administered by Tesco Stores who are responsible for fulfilling points.
  • 18 Replies

  • shawg6's Avatar
    I accept the changes are necessary under the international rules explained in the article. However if you are going to be making these negative changes (as far as most customers will be affected) why doesn't Tesco sugar the pill by re-issuing current credit cards and making them Contactless? I was disappointed to receive an updated credit card which didn't incorporate Contactless technology and now that the Contactless maximum spend has been increased to £30 the system is much more likely to be used by credit card holders. Contactless is already available on Tesco Debit Cards - now is the ideal opportunity to extend that to Tesco Credit Cards.
  • TutTut's Avatar
    I will in future not be useing my Tesco credit card for all my purchases made outside Tesco as there are many cash back credit cards available, that would be make more financial sense.
  • CliveL1949's Avatar
    My wife and I use the Tesco Credit card for all purchases due to the value offered on Clubcard Points. As already commented, we will have to also re-assess the benefit against other credit cards especially now you have stopped the petrol scheme as well.
  • jaffacake's Avatar
    As others have suggested, I likely won't be using my credit card any more either.
    Before the change I got 1 point for every £2 I spent, I now get 1 point for every £8 - that's a 75% reduction in Clubcard Vouchers, so for every £100 in Clubcard Vouchers I used to receive I will now get just £25. I already get 1 point for every £8 I spend on my debit card, which is also contactless. Why would I bother using the credit card?
    It's clear the amount of money you receive from retailers has changed, and that you aren't the only bank that is reducing the card benefits offered, but you won't get any commission from retailers if we stop using the card. £1000 a month put through the credit card used to earn 500 points = £5 in clubcard vouchers. A 0.5% return. Now I'll get just £1.25, or 0.125% With companies like Santander offering up to 3% on their cards, you aren't going to get a look in. They will even give me 1% cashback in Tesco - more return than the Tesco branded card.
  • jrh2254's Avatar
    Looks like time to reassess the previous excellent tesco credit card for accumulating tesco clubcard vouchers. Santander seems a good alternative.
  • jrh2254's Avatar
    I also believe Santander offer excellent current accounts which work well with their credit card so perhaps time to switch from the tesco current account?
  • tlsawbo's Avatar
    Santander has increased the current account fee to £5 an increase of 250% while Tesco has removed the fee altogether.
  • TRICIA54's Avatar
    Just looking
    With Santander credit card there is a £24 per annum fee, waived for the first year subject to a few minor conditions. I am going to use mine - free for the first year - to see if the fee is worth paying, othewise it will be back to CapitalOne and its 0.5%. As to the statement that Santander has increased its current account fee to £5 per month I am still paying £2 and haven't been advised of any change - yet? SInce my wife changed to the Santander 123 account she has received gross interest (she is not a tax payer) of over £450 in one year - after paying the monthly fee. Better than all current ISA's
  • tlsawbo's Avatar
    As to the statement that Santander has increased its current account fee to £5 per month I am still paying £2 and haven't been advised of any change - yet?
    The increase in the Santander fee is all over the newspapers. Check out the link.http://www.dailymail.co.uk/news/arti...t-account.html