MBNA Visa cashback credit card

egyptiancotton

Hey guys,

I'm tempted to get the MBNA Visa cashback credit card as listed on MoneySavingExpert (1.25% back in supermarkets and 0.5% elsewhere).

How does cashback work? Do I accept it when a shop asks me if I'd like cashback or is it automatically applied regardless because it's a cashback card?

Also, how do I get this cashback cash to my account? Is it automatically transferred to my bank account with no charge or is it transferred to my credit card and then I have to transfer it over to my bank account and pay a charge?

If someone could explain to me simply how it works then that'll be very much appreciated! Thanks for help

[Deleted User]

On Amex, it's automatically credited and then deducted from your balance at card anniversary. MBNA is likely the same, but why not check out the t&cs to be sure?

Fruit_and_Nut_Case

This is actually a good question. Old-timers take these things for granted but it's not always obvious to newcomers. Then there's the potential confusion between cashback as a percentage of purchase on a credit card and cashback as sometimes requested and received from a shop after a debit card purchase.

egyptiancotton

Deleted_User wrote: »

On Amex, it's automatically credited and then deducted from your balance at card anniversary. MBNA is likely the same, but why not check out the t&cs to be sure?

Could you explain a bit more about when it's automatically credited and deducted form my balance? What balance is it deducted from?

I've read the terms and conditions but couldn't find much apart from the general stuff like late payments, missed payments, interest charges etc.

For example: If I purchase petrol at Tesco and get 1.25% back of the total. Is this money that I earn back of the transaction debited to my bank account on the anniversary date?

Sorry if I seem a little lost. I'm pretty new to credit cards in general. I'm excellent with my money and I'm looking for a credit card that will give me something back I'm new to cashback so I'm just trying to understand it a little better

[Deleted User]

Not a problem. Basically, you spend £100 on petrol. You pay the normal price (£100). When you get your statement through (assuming that was the only purchase, you'll see something like "Cashback accrued to date: £1.25." Each purchase will then earn cashback and add to this total.

If, after 12 months of having the card, you've earned £50 cashback, this will normally be deducted from your balance for that month. So your statement will say something like 'Balance £500, minus cashback £50, so you owe us £450.' Then you just make the normal payment (min payment, fill balance or whatever).

Some schemes pay by cheque or to a bank account, but it usually comes off the balance, as above. It's worth doing, but not if you don't clear the balance in full each month, as your interest will outweigh the cashback benefit, as the rates are often a little higher than a non cashback card (so they can afford to pay the cashback).

Hope that helps.

egyptiancotton

So normally if it's taken off the balance, I'd just owe them slightly less like you said - rather than owe them £500, I'd owe them £450?

If it's paid to my bank account or if I'd owe them less (the balance minus the cashback) then it works out the same, right?

[Deleted User]

Yup - same result. 50 squids less that you have to pay them.

egyptiancotton

So I actually earn the cashback each month, then it's totalled up and paid after 12 months?

YorkshireBoy

lloydyyy wrote: »

So I actually earn the cashback each month, then it's totalled up and paid after 12 months?

Bearing in mind a) this card's just been launched and b) you're relying on a reply from someone who has applied and received and read the information pack (they promise on their website), why don't you call MBNA and ask them directly? It's a freephone number after all.

Then you could come back and tell us how it works.

td_007

lloydyyy wrote: »

So I actually earn the cashback each month, then it's totalled up and paid after 12 months?

Hold on for about 2 weeks when I get my first statement and I'll let you know exactly how it is done

egyptiancotton

I spoke to them last night and they award your cashback once a year in January to your bank account.

Is it possible to obtain cashback through PayPal?