Tesco Credit Card as 1%+ Cashback Card

Muddyboots_2

As you know well, the Tesco credit card is one of the best reward card. It pays out vouchers quarterly equivalent to 0.5% of your quarterly purchases, and then the vouchers can be exchanged into the Deals tokens with 4x value.

But the main drawback here is that your choice is limited within a certain range of Deals, and often the "real" value of the Deals is below 4x (Martin says it's 3.4x on average). After all, cash is the king in terms of convertibility.

Here's a breakthrough. Why don't we cash in these tesco vouchers on ebay? My research shows that tesco vouchers have been traded around 2.2 times of their face value on average, and at above 3x in some cases. Thus, the Tesco credit card is practically a cashback card paying 1.1% on average (0.5% x 2.2), up to 1.5% (0.5% x 3.0), easily beating the best cashback VISA/Master card (Egg Money and Conran at flat 1%).

If you've got any doubt, just visit ebay.co.uk and search "tesco clubcard vouchers". You'll see a lot of listings there and they are traded at such attractive prices. Surely there are substantial demands for those Deals, and it's a win-win situation for both sellers and buyers. Why not utilise this wonderful marketplace with a little hassle? :j

Woby_Tide

aren't Tesco cracking down saying that names on vouchers should match clubcard holder to convert them? Though how the new online conversion process will affect this is anyones guess, may be even easier then to just sell the voucher codes with no P+P

King_Of_Fools

Woby_Tide wrote:

aren't Tesco cracking down saying that names on vouchers should match clubcard holder to convert them? Though how the new online conversion process will affect this is anyones guess, may be even easier then to just sell the voucher codes with no P+P

Yes, they now say that deals will be only issued in the name of the clubcard holder printed on the clubcard voucher!

Muddyboots_2

King_Of_Fools wrote:

Yes, they now say that deals will be only issued in the name of the clubcard holder printed on the clubcard voucher!

I should have written more clearly.

Yes, names on vouchers should match clubcard holder to convert them into Deals tokens. And the Deals tokens can only be sent out to the clubcard holder. Thus, the vouchers are not transferrable by themselves.

But what ebayers are trading are actually Deals tokens converted from the listed vouchers. Typically sellers list tesco vouchers, the winner inform the seller his/her choice of Deals, the seller converted the vouchers into the requested Deals tokens and send the converted tokens to the buyer.

It may sound complicated, but it is easy and now much easier than before because Tesco introduced new vouchers this Feburuary which can apply for Deals online.

Certain Deals tokens are printed with names and not transferrable (MFI, holiday and travel, hotels, and Goldsmith deals, as far as I know), but there are a lot more to choose, and there are substantial demand for those deals.

For example, £82.50 voucheres were traded at £235.90 yesterday, that is 2.9 times the face value. It's not a bad deal! :T