Tesco - Future of Credit Card

Brothbeard

I've just been told by a member of staff in my local Tesco that they will shortly stop giving club card points when you use one of Tesco's own credit cards. I assume you'll still get the points for the purchase but not for using their card. Perhaps Tesco are selling their credit card operation to someone else.

Has anyone else heard anything? I'll post more when I hear it.

dreaming

That's interesting - will keep an eye out for more news. I have been using my Tesco CC for most things but it doesn't seem worth it in terms of what you get points wise (my spending is quite low on most things) and have been thinking of going back to using cash.

Tiexen

'As a result of changes in the credit card industry taking affect this year, the amount that card companies earn from businesses who accept credit cards is reducing.

'At Tesco Bank, we use that income to fund the Clubcard benefits we give back to our customers.

JuicyJesus

The interchange fees on credit cards have reduced sharply as a result of relatively new regulations - down to a cap of 0.3%. It's that that funds the cashback schemes and such on transactions. Anything paid to you over than that is essentially at a loss to the bank. Amex and others have reduced their cashback schemes for this reason and Tesco is clearly following suit.

WillPS

I don't think shopfloor staff at Tesco would be briefed about this ahead of it being announced as a change.

JuicyJesus wrote: »

The interchange fees on credit cards have reduced sharply as a result of relatively new regulations - down to a cap of 0.3%. It's that that funds the cashback schemes and such on transactions. Anything paid to you over than that is essentially at a loss to the bank. Amex and others have reduced their cashback schemes for this reason and Tesco is clearly following suit.

They already have reacted to that - the earning rate dropped from 1 point per £4 spent to 1 point per £8 spent a year and bit ago (and dropped from 1 extra point per £2 spent at Tesco to 1 extra point per £4 spent).

quackers82

This is the only reason i use my Tesco CC instead of the others, hope its not true as it was a nice little boost to my points.

20aday

I work for Tesco-nothing has been briefed to us and as pointed out above any changes to the Clubcard scheme would be announced first.

At the moment I'd continue to use your credit card as normal.

System

20aday wrote: »

I work for Tesco-nothing has been briefed to us and as pointed out above any changes to the Clubcard scheme would be announced first.

At the moment I'd continue to use your credit card as normal.

The bank wouldn't need to inform the stores as they operate independently. Strictly speaking, if the bank did drop clubcard points, it wouldn't affect the Clubcard scheme anyway.

Brothbeard

Checked again today with two other staff who confirmed what I was told yesterday - no clubcard points for using my Tesco credit card after January 30th. I've been told also that I will be getting a new card.

Superscrooge

Tesco are still advertising the CC on their website stating............

.......... you earn 1 Clubcard point for every £4 spent (£4 minimum) in Tesco and 1 point for every £8 spent (£8 minimum) outside Tesco in each purchase transaction.

I don't think they would still be saying this if they intend to drop the Clubcard points on Monday.

We have only got three days to wait to find out the truth !!

solentsusie

Well I had this in an email at 10.17am this morning regarding my new Tesco credit card. Nothing there about points ending...

Your credit card is your Clubcard too, so your points could soon add up.


£4 spend in Tesco* (in store or online) 5 Clubcard Points

£4 spend on Tesco Fuel† 5 Clubcard Points

£8 spend outside of Tesco 1 Clubcard Point

*Clubcard Credit Card customers must have available credit to collect points. 1 point awarded per £4 spent (£4 minimum) within Tesco and 1 point awarded per £8 spent (£8 minimum) outside Tesco in each purchase transaction. Points exclusions apply to certain items at Tesco, see tesco.com/clubcard/terms for details. Earn rates are subject to change. The Clubcard scheme is administered by Tesco Stores who are responsible for fulfilling points.

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