John Lewis Partnership Card cutting points rate

MDMD

Greengage said:

In any event, the very significant reduction in benefits for non-JL Partnership spending seems very short-sighted to me. Retailers pay considerably more in transaction fees than the existing 0.50% reward plus the rewards themselves can only be spent within the Partnership, boosting profitable turnover.  Why would John Lewis want to discourage use of their Mastercard in favour of more lucrative providers?

Not anymore they don’t - the MasterCard interchange fees are now 0.3%, and the so that is the max the card provider gets.

https://www.mastercard.co.uk/en-gb/about-mastercard/what-we-do/interchange.html

Any other charges over above this are from the retailer’s own merchant acquirer bank.  So at 0.5% they were making a loss on the rewards and even on 0.25% they are making a minimal profit 

Greengage

MDMD said:

Greengage said:

In any event, the very significant reduction in benefits for non-JL Partnership spending seems very short-sighted to me. Retailers pay considerably more in transaction fees than the existing 0.50% reward plus the rewards themselves can only be spent within the Partnership, boosting profitable turnover.  Why would John Lewis want to discourage use of their Mastercard in favour of more lucrative providers?

Not anymore they don’t - the MasterCard interchange fees are now 0.3%, and the so that is the max the card provider gets.

https://www.mastercard.co.uk/en-gb/about-mastercard/what-we-do/interchange.html

Any other charges over above this are from the retailer’s own merchant acquirer bank.  So at 0.5% they were making a loss on the rewards and even on 0.25% they are making a minimal profit 

Thanks for that.  It must also be down to the cost of administration - both HSBC as the bank behind the card and also managing a paper voucher scheme with adequate security features  by normal mail.