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Best Cashback Cards Article Discussion Area

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Comments

  • imenacedk
    imenacedk Posts: 5 Forumite
    great stuff

    \
  • oscarhugo
    oscarhugo Posts: 492 Forumite
    mbailey wrote: »
    I have an Egg Card (Visa) and Egg Money (Mastercard).

    I tend to only use the Egg Money card (1% cashback) as the Egg Card doesn't pay cashback for all transactions.

    Is there any reason for keeping the Egg Card now? Do the retailer instant cashback offers differ between the 2 cards?

    I've kept my EggCARD just in case [they bring out any special deals - like the airport lounges thingy, before they moved the goalposts. But I'm not sure whether the EggMONEY card could've been used for that as well. Anybody know?] but reduced the C/L right down. I've used the EggMONEY card for stoozing [though that's finishing now] but probably won't use it again for spending until my £200 cashback hopefully pops up again next March. (I'm one of the lucky ones who's still getting 1% back on Capital1Circle card at the moment!).
    Expect the worst & hope for the best...
  • xray_3
    xray_3 Posts: 4 Newbie
    Is the income from cashback cards taxable?
  • oly2c
    oly2c Posts: 51 Forumite
    No.It isn't income but a discount.
    if i had known then what i know now
  • xray_3
    xray_3 Posts: 4 Newbie
    oly2c-thanks for that info. Think I'll sign up!
  • CopperPlate_2
    CopperPlate_2 Posts: 1,508 Forumite
    Just seen in another thread that Morgan Stanley have stopped taking applications for their Platinum card - only Buy and Fly. Bang goes the 3% cashback offer now. See the MS site for more info.
  • trisontana
    trisontana Posts: 9,472 Forumite
    Part of the Furniture 1,000 Posts Combo Breaker
    There was a feature about the Morgan Stanley cash-back cards on a recent "Working Lunch". By the look of it many, many people have now cancelled their cards and moved elsewhere. I imaging that the CC company was losing money, as most people were paying off their balance every month, so the only income the company were making was from the fees they charge the merchants.

    Does this mean the end of cash-back cards generally? Personally I cannot see much of a future for them.
    What part of "A whop bop-a-lu a whop bam boo" don't you understand?
  • thegoodman
    thegoodman Posts: 1,235 Forumite
    Part of the Furniture Combo Breaker
    trisontana wrote: »
    There was a feature about the Morgan Stanley cash-back cards on a recent "Working Lunch". By the look of it many, many people have now cancelled their cards and moved elsewhere. I imaging that the CC company was losing money, as most people were paying off their balance every month, so the only income the company were making was from the fees they charge the merchants.

    Does this mean the end of cash-back cards generally? Personally I cannot see much of a future for them.

    The cash-back days are over at least for the short period of time.
    The cash-back cards were introduced to encourage customers to spend more on cards rather than cash or cheques. The amount spend paying cash-back can be recovered from the people paying APR on the outstanding balances in most cases APR being much higher than the loan rate.

    In return this has created another market for non cash-back credit cards by offering lower APR rate. Because cards are easy to get more and more people stared moving interest paying balances to lower rate APR cards and use cash-back card for day-to-day purchases only. Most cash-back cards are losing money.

    In future credit cards will become more difficult to get unless you have a high income and most people will have only one credit card. This may bring the cash-back back cards back as all spending is done on one card with a good chance of more people paying interest on them.

    However for now by spending purchases on two or three cards it is still possible to get cash-back of 1%. I have a city travel reward card paying 1% cash-back on travel payments (£150 or over). You do not need to collect points or anything buy any travel ticket or hotel and as long as you have collected £150 in rewards you can off set the payment by the same amount. The Citi bank is paying £40 to get the card for now.
  • molokoid
    molokoid Posts: 63 Forumite
    Part of the Furniture 10 Posts Name Dropper Combo Breaker
    I've tried doing random dips into this enourmous thread to find out more info, but will make a post to see if anyone can help.

    I utilise cash back cards for all my spending, personal and company expense, and use the following cards...

    Amex Platinum
    Morgan Stanley Mastercard

    I'm after another cash back card that runs the Visa or the Mastercard system as I use the Morgan Stanley card for household purchases that are split between me and my partner.

    I've previously had the Conran MBNA and Egg card and vowed not to return due to poor customer services.

    So my question is, are there any alternatives?
  • mbailey
    mbailey Posts: 858 Forumite
    Part of the Furniture Combo Breaker
    molokoid wrote: »
    I've previously had the Conran MBNA and Egg card and vowed not to return due to poor customer services.

    So my question is, are there any alternatives?

    Egg Money (Mastercard) = 1% cashback (upto £200 a year)

    I haven't experienced any problems with Egg CS. I have always found them helpful.
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