Tandem Cashback ending 9th March

Nessie23

18cc wrote: »

I have a Tandem cashback card and yesterday applied for a Journey card as I don't intend to keep the cashback card after 9 March

I got a 'holding' message saying they would email me when my application could proceed.

I've had a Tandem card for nearly two years, quite early on. I have put up with quite a poor customer service (with a few exceptions) due to the cashback, no foreign fees and instant notifications. However if they are not prepared to treat their existing customers well and offer a switch to another of their products, that's me out.

There are good alternatives available for foreign use: Halifax Clarity, Santander Zero, Aqua, Post Office credit card, Starling, Revolut. Monzo and Bo
And a few cashback options: Amex, Aqua, etc.

No need to put up with a company that treats is customers poorly, with their take it or leave it attitude.

zerog

I don't understand the rush to close accounts in spite. If you now hate Tandem, you should want to make them lose more money by using the card as much as possible until it's automatically closed, not to mention not wasting time trying to call them.

I never liked this being app-only, and in any case I still have the Capital One Classic Extra (closed to new applicants since several years ago) which also pays 0.5% cashback and no forex fees, but no free cash withdrawals (have Halifax Clarity, or can go through Curve/Revolut, if I need that).

Malkytheheed

Tandem failed / had to Introduce monthly charge (they will fail and I will explain why), because they were so strict with their acceptance policy. They were so risk averse that they only wanted only the best of the best customer with impeccable credit history. Their plan was, offer a class leading product and offset the risk by only accepting top credit customers.

The problem?
Because of their strict acceptance policy tandem soon found out that 99.9% of customers were paying off their cards in full every month and getting cashback. Which wasn't making them any money! If you offer a no frills credit card then these people make you money via retailer fees, or if you charge more retailer fees like AMEX then you can still make money this way. But tandem had a customer base of people making them no money. They had written their own downfall by being so strict with their entrance policy. Why will they fail? Because this group of people with impeccable credit histories are typically money savy and not be stupid enough to pay £6 a month for a credit card that's just not worth it. That's the catch 22 for tandem. They created a customer base of customers that made them no money and are too savy to be fooled by a monthly charge.

Enter Aqua.

Aqua make their money (and therefore are able to offer cashback) because they have a low acceptance bar, and make a lot money from customer who only pay minimum payment, miss payments and generally mismanage their accounts. Sure they also loose some money with these customers, but on the whole it's a profit.
Aqua will not necessarily want all of tandems customers as the reasons explained above. For sure they will be watching carefully what is happening to tandem

penners324

I'm pretty sure Tandem will reverse this decision or at least back track and just turn non acceptors into Journey Cards.
Ricky Knox's twitter has indicated this possibility.

Lumiona

Are you looking at the Aqua classic card, not the Aqua Rewards cards as the rewards card is 0% on non sterling.

Lumiona

So it begs the question, who is likely to stay with Tandem with those fees? Customers who like the app and card and see changing cards as a faff? I cannot see many people wanting to pay a premium for a previously free service.

seradane

Lumiona wrote: »

So it begs the question, who is likely to stay with Tandem with those fees? Customers who like the app and card and see changing cards as a faff? I cannot see many people wanting to pay a premium for a previously free service.

I suppose if you have a Tandem card with a balance, the interest rate is going down to 0% so the fees may be less than what you would have paid in interest... but for those of us without... not many I'd think

BakingC

Got accepted for Clarity last night. DD for Tandem went out this morning balance now nil and will stay that way till they cancel the card for me.

£6 fee is ridiculous.

18cc

I know this is old news not (Sep 2019) but if Monzo can't do it I do wonder what makes Tandem think they can...

"Monzo has axed its £6 a month premium bank account just five months after it launched the deal that offered customers different coloured cards and the chance to pay more for extra perks.

The Monzo Plus monthly bolt on, which was £3 for the first year for early adopters, was designed as the challenger bank's answer to packaged bank accounts like Nationwide's FlexPlus and Halifax's Ultimate Reward.

But the £6-a-month account launched in April only gave customers a new debit card – with two new card colours – a custom 'Monzo.me' URL and 'exclusive access to Monzo Plus events and swag'.

Some of the options Monzo planned to offer users as extra paid add-ons included doubling the monthly fee-free foreign ATM withdrawal allowance to £400, travel insurance, phone insurance and 1.5 per cent in-credit interest. "

18cc

Yes once a year and ONLY if you keep to the T&C eg no missed payments or going over the credit limit!