Nationwide reduce payment time

JayS_3

Money_Man_Steve wrote:

The Nationwide Classic Card is still a best buy for purchases abroad or in a foreign currency and has 56 days interstest free credit, although it doesn't pay any cashback.

I spoke to the card services department to ask if I could change my Nationwide Cash Reward Card to a 'Classic' card a few days ago, and asked if that would result in me losing the cashback I had accrued to date. They advised me I could switch and that I'd still get the cashback.

They sent me a letter to confirm my change request - one of the options is to switch to a Classic Card with an introductory rate of 0% for 6 months, which is much better than a poke in the eye with a sharp stick!

I'd be careful though - if you are thinking of converting your Cash Reward in to a Classic card, double check that you'll qualify for the special offer on the new account AND that you won't lose any cashback you've earned to date. Also a good idea to get the name and extension number of anyone at Nationwide who states you will get these benefits, just to be safe!

Also, the reduction in cashback rates doesn't apply to introductory offers, so if you've had your Cash Reward card for less than 6 months, you will still get 1% on all £ Sterling purchases for 6 months from the date your account was opened, so if that applies to you it's worth hanging on to it until your 1% introductory rate expires.

Would be interested to hear how anyone who switches cards gets on...

Forgive me if this is a stupid question, but ...

Does the Cash Reward not offer the same overseas advantages as the Classic card?

Money_Man_Steve

The cash reward card does offer the same overseas advantages, which are no currency conversion charges or exchange rate loading [saving up to 6% vs. other cards as per Martin's article] however from 1st March 05 with the cash reward card, you also won't earn any cashback on non-sterling spending and the interest-free period is being reduced from a maximum 56 days to a maximum 46 days. From the same date, the standard cashback rate on the cash reward card is reduced to 0.25%, making it easily beatable in the cashback card best buy stakes.

With the classic card you don't get cashback on ANY spending (sterling or non-sterling) but you DO retain the maximum 56 days interest free.

Therefore if you decide to retain the Nationwide card just for its non-sterling spending benefits (because the cashback rate on th cash reward card is rubbish from 1st March) you're better off changing a cash reward card for a classic card. It would seem that by doing this, you also qualify for the same offer as a brand new classic card customer, i.e. you'd get an introductory 6 months 0% rate.

Let me know how you get on!

Money Man Steve

Cuppatea_3

I am not happy with Nationwide. I applied for one of their cash reward cards at the beginning of November and I have had nothing but problems with it.

The direct debit I set up at the same time as applying was not set up by them and so I was charged interest and a late payment fee. After complaining they gave back the interest and the late payment fee and also gave me an ex gratia payment of £10 in compensation. I went to my branch the same day that I had complained (31 December) and filled out a new direct debit form.

A week before the next payment was due I rang Nationwide Credit Card and checked that the direct debit had been set up and this was confirmed. Checked online the day after the payment should have been taken and it hadn't. I rang Customer Services again and was told that unfortunately the direct debit had not been set up until after the statement had been printed and so was not set up in time to take the payment, they say it wasn't set up until 10 January. The Customer Services lady said she would make sure that the interest charges etc would be credited back to my account. It wasn't and so I emailed CS (fed up with ringing up). After several messages going backwards and forwards eventually I received a letter saying that the interest etc would be credited back and another ex gratia payment given. Also they confirmed that my direct debit was set up in time for the next payment.

When paying for something the other day the card was rejected (embarrassing or what) and so I paid with another card. 30 minutes later I paid for something else in the same place with the same card and it went through without a problem!!!

Now to top it all they are changing the cashback etc as stated by others and I am not pleased. I am now looking for a different credit card with cash reward before my 6 months 1% cashback period finishes. Are there any reliable ones out there who won't make mistakes in direct debits etc?

JayS_3

Money_Man_Steve wrote:

The cash reward card does offer the same overseas advantages, which are no currency conversion charges or exchange rate loading [saving up to 6% vs. other cards as per Martin's article] however from 1st March 05 with the cash reward card, you also won't earn any cashback on non-sterling spending and the interest-free period is being reduced from a maximum 56 days to a maximum 46 days. From the same date, the standard cashback rate on the cash reward card is reduced to 0.25%, making it easily beatable in the cashback card best buy stakes.

With the classic card you don't get cashback on ANY spending (sterling or non-sterling) but you DO retain the maximum 56 days interest free.

Therefore if you decide to retain the Nationwide card just for its non-sterling spending benefits (because the cashback rate on th cash reward card is rubbish from 1st March) you're better off changing a cash reward card for a classic card. It would seem that by doing this, you also qualify for the same offer as a brand new classic card customer, i.e. you'd get an introductory 6 months 0% rate.

Let me know how you get on!

Money Man Steve

Thanks for explaining that MMS,
We are just waiting for a mortgage to be finalised, once that's done we will look into this and to changing the Amex Blue to Platinum which I understand is the best cashback at present (in the shops where they accept it). Apart from Amex Platinum, can you suggest a best backup cashback card?

Ta,
JayS

Galstonian

While I don't doubt you've had your troubles I think you are being a little harsh on them. They have accepted blame and made good their mistakes even though they could easily have refused to.

Statements which are being paid by drect debit state on them when the payment will be taken and how much it will be. This is true of all credit cards and it is your responsibility to make sure it is there because if it isn't it tells you that you have to make the payment. Direct debit forms usually include a blurb on "continuing to make payments as normal until the agreement is put in place".

As for rejecting a payment you should have found out why. If the request actually made it to NW then it is quite likely that the retailer would have been asked to call them - many retailers simply do not do this as they regard it as too much hassle especially for small payments. There is also the possibility that it simply failed to be accepted rather than it was rejected. Technical problems with anything from the card reader to N/Ws computers on either the request or the aceptance could account for these.

Cashback is being reduced by almost all cards. Amex is probably the only sustainable alternative but it is not as widely accepted. No organisation can guarantee that mistakes won't be made, if they do they are lying. In my experience Nationwide are one of the best in putting any mistakes right.

Money_Man_Steve

JayS wrote:

Thanks for explaining that MMS,
We are just waiting for a mortgage to be finalised, once that's done we will look into this and to changing the Amex Blue to Platinum which I understand is the best cashback at present (in the shops where they accept it). Apart from Amex Platinum, can you suggest a best backup cashback card?

Ta,
JayS

I think the best back up Visa/Mastercard depends on how much you think you may spend on it in a year. Morgan Stanley give 1% on their Platinum card, but only on the first £2000 per year, when the rate drops to 0.5%. They do currently have an offer of double cashback until 31/05/05 though...

Then there's the Bank of Ireland Moneyback cards that give 0.5% on the first £3000 pa, then 1% on anything over that.

Martin recommends the Conran Card, provided by MBNA. It's not specifically a cashback card, but is described as a 'profit share' card - they say that they will give all cardholders a share of the profits that they earn from operating the card. It's guaranteed to be equal to 0.8% but apparently in practice it's always been 1%. I understand that the profit share is paid back in to the account in the same way as a lot of cashback cards do. You get more cashback if you shop in Conran outlets, such as their posh restaurants, etc.

My introductory cashback rate from Nationwide has just run out, so I'm switching to my Morgan Stanley Platinum for the time being. The account anniversary is at the end of June (when they pay the cashback) and I haven't been using it, so I can spend £2k on it before then and still get 1% cashback on it. After that I think I may try the Conran Card...

JayS_3

Money_Man_Steve wrote:

I think the best back up Visa/Mastercard depends on how much you think you may spend on it in a year. Morgan Stanley give 1% on their Platinum card, but only on the first £2000 per year, when the rate drops to 0.5%. They do currently have an offer of double cashback until 31/05/05 though...

Then there's the Bank of Ireland Moneyback cards that give 0.5% on the first £3000 pa, then 1% on anything over that.

Martin recommends the Conran Card, provided by MBNA. It's not specifically a cashback card, but is described as a 'profit share' card - they say that they will give all cardholders a share of the profits that they earn from operating the card. It's guaranteed to be equal to 0.8% but apparently in practice it's always been 1%. I understand that the profit share is paid back in to the account in the same way as a lot of cashback cards do. You get more cashback if you shop in Conran outlets, such as their posh restaurants, etc.

My introductory cashback rate from Nationwide has just run out, so I'm switching to my Morgan Stanley Platinum for the time being. The account anniversary is at the end of June (when they pay the cashback) and I haven't been using it, so I can spend £2k on it before then and still get 1% cashback on it. After that I think I may try the Conran Card...

We are heavy spenders (but only on cashback cards!) actually, we just put everything through the card, so..., possibly The Bank of Ireland, we don't live anywhere near a Conran restaurant and I stopped shopping in Habitat when they went downhill at the beginning of the 90's.

Ta, JayS

Galstonian

Why not read Martin's article on rewards, it includes a table of cards ranked in order of benefit. Some have changed but the likes of Tesco remain the same. If you collect a point for every £2 spent but convert them to deals you get the equivalent of 2p in the £ which is very hard to beat and if you shop at Tesco's you'll get even more. Deals are limited to Tesco partners but there are quite a lot, including Blockbuster, Cosmos, MFI and Marriott to name a few. I think this has the advantage over Amex in acceptability but Amex obviously gives cash.

JayS_3

Galstonian wrote:

Why not read Martin's article on rewards, it includes a table of cards ranked in order of benefit. Some have changed but the likes of Tesco remain the same. If you collect a point for every £2 spent but convert them to deals you get the equivalent of 2p in the £ which is very hard to beat and if you shop at Tesco's you'll get even more. Deals are limited to Tesco partners but there are quite a lot, including Blockbuster, Cosmos, MFI and Marriott to name a few. I think this has the advantage over Amex in acceptability but Amex obviously gives cash.

Thanks Galstonian,

I'll look at the Tesco card, but only shop in a small Express as the big supermarket is too far away - but for the times I do, the points may work out better.

JayS

Money_Man_Steve

JayS wrote:

We are heavy spenders (but only on cashback cards!) actually, we just put everything through the card, so..., possibly The Bank of Ireland, we don't live anywhere near a Conran restaurant and I stopped shopping in Habitat when they went downhill at the beginning of the 90's.

Ta, JayS

The Conran card is a good deal even if you never use it in Conran outlets, as it gives a guaranteed 0.8% on all spend, wherever you use it. I understand from Martin's articles that in practice it has always actually paid 1%., although of course this may not always be the case.

I guess you spend your money and take your choice...!