JaJa credit card unexplained closure of account 3 March at 9:58AM in Credit cards 142 replies 40.9K views

RhondaD

I haven't. Only had the new Asda one around 6 months and use it for small purchases.

spinningsheep

RhondaD said:

I haven't. Only had the new Asda one around 6 months and use it for small purchases.

Likewise. Have a £1k limit, usually just pop through about £50 worth of Asda shopping a month and pay off in full. 

NewPieman

Email just received - closing account 24th May - had it as I was transferred from Post Office.....
"

After reviewing our credit card offerings, we've made the difficult decision to discontinue the Jaja Credit Card that you currently hold with us. In line with your terms and conditions, your account will automatically close on 24 May 2023.

We'd like to take this opportunity to thank you for supporting us by using our credit card over the last few years."

liftmyspirits

I’ve just received JaJa’s email, notifying me of card discontinuation on 24 May. I was transferred to JaJa from POffice, and have only really used JaJa on two or three trips overseas each year - maybe 60 - 100 transactions, totalling small 1000’s of ££’s (to avoid the foreign transaction charges).

Alex9384

WillPS said:

I was replying to @CliveOfIndia who was asserting the oft-repeated myth that card issuers make a healthy return from low-normal spending when paid in full (so no interest) because of the fees merchants pay.

It's a common misunderstanding that fees merchants pay are passed on to the card issuers, when actually none of it does directly, and the total slice which could even potentially get to them is the interchange fee which is capped at 0.3% (which is the total revenue for both Visa/Mastercard AND the issuer). 

I didn't say the merchants don't pay fees, as that'd be plainly untrue.

Who are the issuers then?
Just a couple days ago, i was watching a video where they referred to issuers such as Bank of America and payment networks like Visa or MC. They referred to Amex as both issuer and payment network. Visa and MC are not issuers, are they?

CliveOfIndia

Alex9384 said:

WillPS said:

I was replying to @CliveOfIndia who was asserting the oft-repeated myth that card issuers make a healthy return from low-normal spending when paid in full (so no interest) because of the fees merchants pay.

It's a common misunderstanding that fees merchants pay are passed on to the card issuers, when actually none of it does directly, and the total slice which could even potentially get to them is the interchange fee which is capped at 0.3% (which is the total revenue for both Visa/Mastercard AND the issuer). 

I didn't say the merchants don't pay fees, as that'd be plainly untrue.

Who are the issuers then?
Just a couple days ago, i was watching a video where they referred to issuers such as Bank of America and payment networks like Visa or MC. They referred to Amex as both issuer and payment network. Visa and MC are not issuers, are they?

You're absolutely correct.  Visa and Mastercard etc. are the payment network operators, but they do not issue cards directly to you and I.  The card issuer is your bank, and they are the ones you have the contract with.

A friend of mine works for a well-known high-street bank and apparently their credit card business is a major source of revenue for them.

WillPS

Alex9384 said:

WillPS said:

I was replying to @CliveOfIndia who was asserting the oft-repeated myth that card issuers make a healthy return from low-normal spending when paid in full (so no interest) because of the fees merchants pay.

It's a common misunderstanding that fees merchants pay are passed on to the card issuers, when actually none of it does directly, and the total slice which could even potentially get to them is the interchange fee which is capped at 0.3% (which is the total revenue for both Visa/Mastercard AND the issuer). 

I didn't say the merchants don't pay fees, as that'd be plainly untrue.

Who are the issuers then?
Just a couple days ago, i was watching a video where they referred to issuers such as Bank of America and payment networks like Visa or MC. They referred to Amex as both issuer and payment network. Visa and MC are not issuers, are they?

Visa, Mastercard and Amex are the card networks applicable to UK residents (also Diners Club, not sure if they're still about as they've been dwindling for years). There are subtypes (i.e. Electron (Visa) and Maestro (Mastercard)) but these are rare and where they still exist they process through the same networks as their core offer siblings.

Issuers are usually banks, occasionally building societies, including all the big names but also lenders like NewDay, Capital One, Jaja who specialise in credit cards.

Acquiring banks only deal with card networks - however Visa or Mastercard interface interact with the issuer is totally hidden from them, which means those symbols can be used to work with different kinds of accounts the world over.

Amex is unusual in that it remains both an issuer and a card network. As such, their own products are not liable to the Interchange Fee Cap unless they feature a partner brand (as that then makes them a 'fourth party').

penport

I too have just received the email - account closing 24th May.
Ex post office and used extensively when abroad - luckily for me just got back from my latest trip.
I always wondered why Jaja was the only physical card in my wallet - perhaps their lack of Apple Pay functionality was a pointer to a less than profitable operation?
During my latest trip I used Monzo for multiple small purchases (zero commission) on my phone, keeping JaJa for bigger things.
Hey ho

sjw11

Yep, I've had the email.

Previously a PO Credit card, I have used it extensively in Europe especially to buy in fuel stations, restaurants and hotels, and as far as I can remember I've always paid it off by direct debit after I forgot one and got a shock interest charge . Last used in November and September.

So I think we've had enough discussion about why they've done it, now I'd appreciate opinions on what to replace it with, given my typical spending habits and one that offers the best exchange rate

CliveOfIndia

sjw11 said:

Yep, I've had the email.

Previously a PO Credit card, I have used it extensively in Europe especially to buy in fuel stations, restaurants and hotels, and as far as I can remember I've always paid it off by direct debit after I forgot one and got a shock interest charge . Last used in November and September.

So I think we've had enough discussion about why they've done it, now I'd appreciate opinions on what to replace it with, given my typical spending habits and one that offers the best exchange rate

If you do a lot of spending in foreign currency then any of the "Travel" cards will suit your requirements: https://www.moneysavingexpert.com/credit-cards/travel-credit-cards/

In terms of exchange rate, there's little to choose between them.  They'll all use the Visa/Mastercard rate as applicable, which is about as good as you're likely to get (certainly far more favourable than letting the retailer do the conversion for you).  Just make sure you pay in local currency then let your card issuer convert it to GBP for you.