Credit card cashback

MDMD

SomeMadeUpName said:

I hadn't realised the cashback rates had got so poor/difficult to find. 

I have a historic Barclaycard paying 0.5% (which I only use for £100-£200pcm) an Amex paying 0.5% (which I never use anymore) and a NatWest Rewards card paying 0.5% except supermarket which is 1% (which I use for £1k-£2k pcm) that last one though has a £99 fee (from memory) but that's refunded as I have NatWest Rewards current account.

The big winner though is that I have a Capital on Tap corporate card that, whilst it is in the name of my Ltd Co, is personally guaranteed by me as a director (meaning it's not too hard to get, and the limit is good). That pays the business 1% and we use it for £40-£50k pcm, putting over £5k pa back on our bottom line.

Point being that if business cards can do it, then why can't personal cards?

Retailers will be charged a higher interchange  fee to process payments made using  the business card. Consumer cards have a fee cap.

SomeMadeUpName

MDMD said:

SomeMadeUpName said:

I hadn't realised the cashback rates had got so poor/difficult to find. 

I have a historic Barclaycard paying 0.5% (which I only use for £100-£200pcm) an Amex paying 0.5% (which I never use anymore) and a NatWest Rewards card paying 0.5% except supermarket which is 1% (which I use for £1k-£2k pcm) that last one though has a £99 fee (from memory) but that's refunded as I have NatWest Rewards current account.

The big winner though is that I have a Capital on Tap corporate card that, whilst it is in the name of my Ltd Co, is personally guaranteed by me as a director (meaning it's not too hard to get, and the limit is good). That pays the business 1% and we use it for £40-£50k pcm, putting over £5k pa back on our bottom line.

Point being that if business cards can do it, then why can't personal cards?

Retailers will be charged a higher interchange  fee to process payments made using  the business card. Consumer cards have a fee cap.

Ah, ok, in much the same way Amex charges retailers more and so can give the best cashback. 
That explains it.

[Deleted User]

SomeMadeUpName said:

I hadn't realised the cashback rates had got so poor/difficult to find. 

I have a historic Barclaycard paying 0.5% (which I only use for £100-£200pcm) an Amex paying 0.5% (which I never use anymore) and a NatWest Rewards card paying 0.5% except supermarket which is 1% (which I use for £1k-£2k pcm) that last one though has a £99 fee (from memory) but that's refunded as I have NatWest Rewards current account.

The big winner though is that I have a Capital on Tap corporate card that, whilst it is in the name of my Ltd Co, is personally guaranteed by me as a director (meaning it's not too hard to get, and the limit is good). That pays the business 1% and we use it for £40-£50k pcm, putting over £5k pa back on our bottom line.

Point being that if business cards can do it, then why can't personal cards?

Different models, US has a lot of good cashback deals but also pay for banking etc.
As an example the Amex Blue Cash Preferred card gives you: 

$300 bonus if you spend $3000 in the first 6 months

6% Cash Back at U.S. supermarkets on up to $6,000 per year in purchases (then 1%)

6% Cash Back on select U.S. streaming subscriptions

3% Cash Back on transit including taxis/rideshare, parking, tolls, trains, buses and more

3% Cash Back at U.S. gas stations

1% Cash Back on other purchases
$0 fee first year, then $95 a year
You need a 670-850 credit score to get it (yes they matter in the US)

SomeMadeUpName

Deleted_User said:

SomeMadeUpName said:

I hadn't realised the cashback rates had got so poor/difficult to find. 

I have a historic Barclaycard paying 0.5% (which I only use for £100-£200pcm) an Amex paying 0.5% (which I never use anymore) and a NatWest Rewards card paying 0.5% except supermarket which is 1% (which I use for £1k-£2k pcm) that last one though has a £99 fee (from memory) but that's refunded as I have NatWest Rewards current account.

The big winner though is that I have a Capital on Tap corporate card that, whilst it is in the name of my Ltd Co, is personally guaranteed by me as a director (meaning it's not too hard to get, and the limit is good). That pays the business 1% and we use it for £40-£50k pcm, putting over £5k pa back on our bottom line.

Point being that if business cards can do it, then why can't personal cards?

Different models, US has a lot of good cashback deals but also pay for banking etc.
As an example the Amex Blue Cash Preferred card gives you: 

$300 bonus if you spend $3000 in the first 6 months

6% Cash Back at U.S. supermarkets on up to $6,000 per year in purchases (then 1%)

6% Cash Back on select U.S. streaming subscriptions

3% Cash Back on transit including taxis/rideshare, parking, tolls, trains, buses and more

3% Cash Back at U.S. gas stations

1% Cash Back on other purchases
$0 fee first year, then $95 a year
You need a 670-850 credit score to get it (yes they matter in the US)

Agreed.

I forgot to say in my summary, that Corporate Visa costs us £99 a year. Swamped by the benefit when you spend the £0.5M we do, but a definite part of the providers business model.

jbrassy

SomeMadeUpName said:

I hadn't realised the cashback rates had got so poor/difficult to find. 

I have a historic Barclaycard paying 0.5% (which I only use for £100-£200pcm) an Amex paying 0.5% (which I never use anymore) and a NatWest Rewards card paying 0.5% except supermarket which is 1% (which I use for £1k-£2k pcm) that last one though has a £99 fee (from memory) but that's refunded as I have NatWest Rewards current account.

The big winner though is that I have a Capital on Tap corporate card that, whilst it is in the name of my Ltd Co, is personally guaranteed by me as a director (meaning it's not too hard to get, and the limit is good). That pays the business 1% and we use it for £40-£50k pcm, putting over £5k pa back on our bottom line.

Point being that if business cards can do it, then why can't personal cards?

The EU capped the interchange fees Visa and Mastercard can charge merchants to 0.3% for consumer credit cards. Previously, when these interchange fees were uncapped, they funded cashback for consumers. This is why you won't find a consumer credit card paying more than 0.25% today. 

There are 2 exceptions to this cap. First of all, Amex were exempt due to their low market share compared to Visa and Mastercard. Second, the cap did not apply to corporate or business credit cards. Therefore, providers of these cards have more flexibility to offer higher rates of cashback. 

SomeMadeUpName

jbrassy said:

SomeMadeUpName said:

I hadn't realised the cashback rates had got so poor/difficult to find. 

I have a historic Barclaycard paying 0.5% (which I only use for £100-£200pcm) an Amex paying 0.5% (which I never use anymore) and a NatWest Rewards card paying 0.5% except supermarket which is 1% (which I use for £1k-£2k pcm) that last one though has a £99 fee (from memory) but that's refunded as I have NatWest Rewards current account.

The big winner though is that I have a Capital on Tap corporate card that, whilst it is in the name of my Ltd Co, is personally guaranteed by me as a director (meaning it's not too hard to get, and the limit is good). That pays the business 1% and we use it for £40-£50k pcm, putting over £5k pa back on our bottom line.

Point being that if business cards can do it, then why can't personal cards?

The EU capped the interchange fees Visa and Mastercard can charge merchants to 0.3% for consumer credit cards. Previously, when these interchange fees were uncapped, they funded cashback for consumers. This is why you won't find a consumer credit card paying more than 0.25% today. 

There are 2 exceptions to this cap. First of all, Amex were exempt due to their low market share compared to Visa and Mastercard. Second, the cap did not apply to corporate or business credit cards. Therefore, providers of these cards have more flexibility to offer higher rates of cashback. 

And that is (comprehensively) the answer. Thx

neurosurgeon

I just got an e-mail from halifax regarding an opt in e-mail offer for 0.5% cashback from Oct to December this year, it is for my clarity card