Capital One axing cashback for some, cuts cashback rates for others

SeduLOUs

msallen wrote: »

You don't 5 points per £4 from your CC at Tesco because 4 of those points are got with your normal clubcard anyway. You basically get 1 point per £4 anywhere (and only on complete £4, so a spend of £7.99 gets you one point)

Thanks for correcting. I'd wrongly assumed that the points quoted on the credit card page were over and above the basic clubcard points.

Sounds like the Santander 1-2-3 with ordinary clubcard combo is the best bet for the Tesco shoppers then :beer:

gtrevor

I've got 3 children under the age of 10 so the clubcard boosts would be handy to be fair .. Will have to look at their typical offers but still think a mix of Tesco and Amex will be best .. Wonder if Amex will reduce their rates as presumably they are hit by the same legislation?

gtrevor

msallen wrote: »

You don't 5 points per £4 from your CC at Tesco because 4 of those points are got with your normal clubcard anyway. You basically get 1 point per £4 anywhere (and only on complete £4, so a spend of £7.99 gets you one point)

Oh that's really misleading then...! Scrap that idea, definitely won't be applying for a Tesco credit card now!!

Thanks for pointing this out!

Mishomeister

gtrevor wrote: »

.. Wonder if Amex will reduce their rates as presumably they are hit by the same legislation?

Not necessary:

BRUSSELS, Dec 18 (Reuters) - European Union governments have agreed to cap the fees retailers pay to process debit and credit card transactions in a move the EU parliament said should bring down costs for customers.
Negotiators from European governments and the economic committee of the EU parliament agreed late on Wednesday to cap charges across the 28 countries in the union following a long battle over charges with payments groups, including Visa and MasterCard.
The cap would apply to both cross-border and domestic card-based payments which cost businesses across the EU around 10 billion euros ($12.3 billion) a year. The fees are opaque and differ from country to country.
Retailers are charged for every card transaction and add the costs to the prices of the goods or services they offer.
"This legislation is good for consumers, good for business, and good for Europe. It will lead to lower prices and visibility of costs for consumers," said Margrethe Vestager, commissioner in charge of competition policy.
She said the interchange fee was a "tax" levied on business by banks and the price cap should release "the brakes that have so far held back innovation."
VISA WARNING
Visa said clarity on the fees was welcome, but warned it could hurt the cards industry and said there was no guarantee that retailers would pass on the savings to consumers.
"We continue to have serious concerns that the regulation will have unintended consequences, particularly for consumers, and that it could stifle future innovation," Visa said in a statement.
The European parliament said credit card fees will be capped at 0.3 percent of the transaction value.
Cross-border debit card fees will be capped at 0.2 percent of the transaction value, and domestic debit card fees will be capped at 0.2 percent of the annual weighted average transaction value of all domestic transactions within the card scheme.
Fees charged by banks belonging to card schemes such as Visa and MasterCard, so-called four-party schemes involving the bank who issued the card, the retailer, the retailer's bank and the card user, will be affected by the cap. They account for the lion's share of the market.
The price cap will not initially apply to the so-called three-party card schemes, such as Diners and American Express, which involve only one bank.
Retailers will also be free to choose which cards to accept, effectively ending the so-called 'Honour All Cards' rule.
Visa said that could be bad for consumers if they are unsure if their card will be accepted.
Commercial cards used only for business expenses would be exempt from the new price cap.
These caps will take effect six months after the legislation enters into force. It first needs to be endorsed by EU governments and by the Economic and Monetary Affairs Committee, before being put to a vote by the full parliament next year.
Regulators in individual EU countries are also investigating the cards industry.
In Britain, where 70 percent of Europe's credit cards are held, the financial watchdog is assessing the way cards are sold amid concerns that poorer customers are trapped in a spiral of debt on their cards.
($1 = 0.8143 euros)


Saying so there is nothing stopping AMEX to use the the fact there will be no competition any mor eand just slash the cashback rates to an absolute minimum.

davidsuffolk

Slightly off topic but does anyone know whether John Lewis ONLINE use the same merchant code 5311 as the shop? Reason being Santander123 give 2% on department store spending and I wonder whether you would still get it for online purchases. I asked JL CS who say "they don't know" helpfully!

planteria

thanks Mishomeister:)

as you say, the risk is that, with a lower paying marketplace, Amex don't need to continue as they are. i have seen them honour existing agreements far more than other card providers.. and hopefully that will continue:A

Herbalus

davidsuffolk wrote: »

Slightly off topic but does anyone know whether John Lewis ONLINE use the same merchant code 5311 as the shop? Reason being Santander123 give 2% on department store spending and I wonder whether you would still get it for online purchases. I asked JL CS who say "they don't know" helpfully!

I also "don't know" for sure but I can't see why they'd have a different code.

roddydogs

Re the Santander 1-2-3 card, its seem an awuful lot of faffing to see which petrol stations & Supermarkets it applys to, so are there any Petrol stations it Dosent apply to, or any supermarkets, (i know "tesco express dosnt seem to count)

bxboards

I've heard nothing yet regarding my Business Aspire card regarding cashback being dropped or reduced.

noelphobic

frank777 wrote: »

Back to basics - Round 1 you have received a notification letter that cashback ends 1st June

I have not received a letter in the post, I'm not effected or has the letter got lost in the post? I contact CapitalOne and flag my account up with the management and maybe end up in Round 2

Round 1 - computer generated expendables
Round 2 - handpicked expendables
Round 3

I trust CapitalOne/Luma etc will include a message/copy letter in the May statement cashback ends 31st May.
I assume cashback will be paid on transactions dated 31st May

Don't contact Capitalone/Luma etc - wait and see - I get 4% from Luma and 1% from Capitalone with a £10 bonus for managing my account in a responsible way and have not been notified of cashback ending on any of my accounts

Apologies if this has already been answered but not got time to read through all 11 pages!

I got my letter today and it states 'your card will still earn cash back on purchases POSTED to your account until 31st May.'

It explains on the back that 'when you use your card it takes a number of days for the transaction to be approved and to show on your balance. When it appears, it has been 'posted''.

I will therefore stop spending on mine a couple of days beforehand.