JaJa credit card unexplained closure of account 3 March at 9:58AM in Credit cards 142 replies 40.8K views

kipsterno1

Hammer_Time said:

I have also received the cancellation email, I only use it for holidays and foreign currency purchases. I only use it about 6-12 times a year. I have now applied for the Halifax clarity card.

Exactly the same for me. I used it to pay for the hotel when away and any large purchases (white goods, car service) so maybe six times a year max. No big issue.

I can't decide between the Clarity from Halifax or rewards from Barclaycard, both fit the bill for paying for holidays abroad. 

WillPS

CliveOfIndia said:

kipsterno1 said:

I haven't paid a penny in interest which might be why they nolonger want me as a customer. 

This in itself would not usually be a trigger for account closure.  Whilst interest paid by a customer is of course welcome for a lender, credit card issuers receive plenty of income from the fees they charge the retailer every time you use the card.  If you use the card regularly and always pay in full every month, they get a nice steady income stream with none of the costs associated with having to chase (potentially) bad debt.

No, they don't. Mastercard/Visa issuers don't charge the merchant a penny, ever.

Mastercard/Visa charge what is known as 'interchange'. For UK credit cards this is capped at 0.3% (when used within the UK).

They may pay some of this to the issuer by way of commission, but even if they didn't keep any and passed the whole lot on 0.3% is not a plentiful source of revenue.

To put it in to perspective, the cost of getting a physical credit card to the customer is something like £5. Even if the issuer got 100% of that interchange revenue (which they never would, as then Visa/Mastercard would earn zero), it would take £1666.67 worth of spend just to cover that one simple cost.

jbuchanangb

Another ex Post Office (Bank of Ireland) Jaja customer here. Also received the account closure notice. 

Only used for foreign currency transactions, mainly one USD transaction per year.

Previous overseas trip was in 2019, when I think it was still Post Office.

Just about to go on the first trip abroad since Jaja took over from BoI. They can expect several high value transcations in the next 10 days!

The closure notice seems to be in accordance with clause 13.4 of their Ts&Cs.

jimmo

2 emails today:
1 They're upping my credit limit on my ASDA card.
2 I can now use Google Pay.

elasto

I've had my Asda credit limit increased in the last few days also.

Looks like Jaja is more just reorganising what products they are putting their resources into as opposed to exiting the UK market.

UncleRupert2023

Just received e-mail from Ja Ja saying that they are "discontinuing the credit card that you hold with us".  The credit card as such is still going but I've been kicked out,. No reason given, surely they should give one.  I feel a bit miffed at this and wondering if it affects my credit score??  Anyone else had any experience with this sort of issue?

northwalesd

Jaja seem to be reorganising

https://forums.moneysavingexpert.com/discussion/6429670/jaja-credit-card-unexplained-closure-of-account#latest

born_again

Long thread here

https://forums.moneysavingexpert.com/discussion/6429670/jaja-credit-card-unexplained-closure-of-account/p1

surreysaver

I haven't received an email. Yet. I only run about £4pm through it, as I just use it for one of my RBS direct debits 

LunaLater

WillPS said:

CliveOfIndia said:

kipsterno1 said:

I haven't paid a penny in interest which might be why they nolonger want me as a customer. 

This in itself would not usually be a trigger for account closure.  Whilst interest paid by a customer is of course welcome for a lender, credit card issuers receive plenty of income from the fees they charge the retailer every time you use the card.  If you use the card regularly and always pay in full every month, they get a nice steady income stream with none of the costs associated with having to chase (potentially) bad debt.

No, they don't. Mastercard/Visa issuers don't charge the merchant a penny, ever.

Mastercard/Visa charge what is known as 'interchange'. For UK credit cards this is capped at 0.3% (when used within the UK).

They may pay some of this to the issuer by way of commission, but even if they didn't keep any and passed the whole lot on 0.3% is not a plentiful source of revenue.

To put it in to perspective, the cost of getting a physical credit card to the customer is something like £5. Even if the issuer got 100% of that interchange revenue (which they never would, as then Visa/Mastercard would earn zero), it would take £1666.67 worth of spend just to cover that one simple cost.

That doesn’t seem to be correct.

https://startups.co.uk/payment-processing/credit-card-processing-fees/