Visa component of the MBNA Amex/Visa cashback withdrawn.

terafarma

I have today received a letter from MBNA, dated March 2016, informing me of the cessation of the 0.5% Visa cashback payments of the Amex 1%/Visa 0.5% credit cards. The latter states, "Dear Mr.......,

We are writing to advise you that we can no longer offer cashback on your MBNA Visa Credit Card with cashback account. As a valued customer, we would like to explain the changes we are making, and why". It went on to explain that "From 22 April, you will no longer earn cashback".

Well, at least I'll still be able to earn 1% on the Amex part of it should I wish to continue using the card, but doubt I'll do as they intend paying all accrued cashback by 6 May 2016 for the period 1 January to 22 April 2016. I'm going to stick with my Barclaycard Amex /Visa cashback credit cards until and unless they go the same way as MBNA. By the way, MBNA premised their decision on "A new piece of European Union legislation that came into effect in December 2015". In effect, a reduction of the fees that they get from merchants for card payments is having a knock on effect on this. It was good while it lasted

20aday

terafarma wrote: »

I have today received a letter from MBNA, dated March 2016, informing me of the cessation of the 0.5% Visa cashback payments of the Amex 1%/Visa 0.5% credit cards. The latter states, "Dear Mr.......,

We are writing to advise you that we can no longer offer cashback on your MBNA Visa Credit Card with cashback account. As a valued customer, we would like to explain the changes we are making, and why". It went on to explain that "From 22 April, you will no longer earn cashback".

Well, at least I'll still be able to earn 1% on the Amex part of it should I wish to continue using the card, but doubt I'll do as they intend paying all accrued cashback by 6 May 2016 for the period 1 January to 22 April 2016. I'm going to stick with my Barclaycard Amex /Visa cashback credit cards until and unless they go the same way as MBNA. By the way, MBNA premised their decision on "A new piece of European Union legislation that came into effect in December 2015". In effect, a reduction of the fees that they get from merchants for card payments is having a knock on effect on this. It was good while it lasted

Capital One started the trend last year and others (Tesco Bank, M&S Bank etc) have followed suit.

These have also stated a reduction in Interchange Fees for their decisions; as time progresses others will follow suit (or possibly copy Santander by increasing the Annual Fee whilst capping the amount earned per month).

Whilst Sainsbury's Bank offer 2 points per £1 spent within a Sainsbury's store/petrol filling station and 1 point per £5 spent elsewhere at present I'm expecting them to be the next one to announce changes on the back of this legislation...

giblet10

Political views aside, Im afraid this is all down to the EU capping interchange fees at 0.3%.

The only exemption is American Express issued Amex cards (so not the Amex cards issued by MBNA, Lloyds etc who have an exemption until 2018).

The credit card industry will change, especially those offering things like cash back, airline/hotel points etc - it could go like the American system of cards carrying an annual fee but with greater benefits.

But we will see other card issuers following suit like Cap One and the others have already started doing.

buglawton

Looking forward to reducing the quantity of credit cards I carry to 1 once all incentives are cut. Anyway a knock on will be reduced prices (in effect) when you buy with a credit card, especially for online services and maybe for cars.

King_Of_Fools

buglawton wrote: »

Anyway a knock on will be reduced prices (in effect) when you buy with a credit card, especially for online services and maybe for cars.

Don't hold your breath!

buglawton

King_Of_Fools wrote: »

Don't hold your breath!

I've already seen some online card fees cut from 3 to 1 percent.

rtho782

Nationwide still do 0.5% cashback on their Select cards.

tansycat

I've just had a similar letter today about my MBNA Visa card. Thanks to the EU's interference I'll be losing around £60 a year cashback, even more if my other cashback card follows suit. I haven't noticed any price reductions because of lower fees for the sellers, in fact I've just had to pay by debit card instead of credit card to avoid a 1% surcharge. It's just another blow to people who try to manage their money carefully. Looks like soon it's going to be all stick and no carrot.

Nebulous2

tansycat wrote: »

I've just had a similar letter today about my MBNA Visa card. Thanks to the EU's interference I'll be losing around £60 a year cashback, even more if my other cashback card follows suit. I haven't noticed any price reductions because of lower fees for the sellers, in fact I've just had to pay by debit card instead of credit card to avoid a 1% surcharge. It's just another blow to people who try to manage their money carefully. Looks like soon it's going to be all stick and no carrot.

Your credit card company offers you free payment facilities and up to 56 days interest free credit. If you take out a new credit card you can get over 3 years interest free for a modest fee, so the carrots are still very much there.

It has always been a bit of an anomaly that the credit card companies get away with charging retailers so much that they can afford to share it with you. Credit card companies are businesses. They do what is best for them. They may well make more money from people who don't manage their money carefully.

elle_may

Just had my letter today, shame as i have had lots of cashback over the years. Well i wont be putting any more on this card, used to put all my monthly spending on and pay off at end of month( like the Queen i never carry cash)ha ha!

But as it is a money transfer card and lower fee i will keep it for now. My Halifax card with it's cashback offer's will now get my custom, and it is only 9%APR, had it many year's. Don't want to apply for any more card's at the moment, due to a few credit applications that i received.