Changes to Tesco Clubcard Credit Card.

in Credit Cards
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20aday20aday Forumite
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Just a heads up to anyone who uses their Tesco Clubcard credit card (especially outside of a Tesco store):

Over the next two months we’ll be writing to everyone who has a Tesco Bank Credit Card to let them know about some changes taking place in the credit card industry which will affect the amount of Clubcard points they receive when they use their card.

The industry changes mean that the income which banks receive from businesses who accept credit cards is reducing. At Tesco Bank, we use that income to contribute to the cost of running our credit cards – including the Clubcard benefits we provide.

If you have a Tesco Bank Credit Card, when you use your credit card in a Tesco store you will continue to receive the same number of Clubcard points as you do currently. However, to reflect the industry changes, the amount of Clubcard points you earn when you use your card out of Tesco is reducing to one point for every £8 you spend*.

You don’t need to do anything and can carry on using your card as normal. The changes won’t take effect until later this year and we’ll be writing to you in the coming weeks to give you more details.

In the meantime, we’ve tried to answer as many of the key questions below. If you have any further questions please let us know.

Why are these changes happening?
Earlier this year it was confirmed that the income banks receive from businesses each time a customer pays with a credit card is being reduced. You may have read in the press that a number of other credit card providers have already amended their cards as a result of these industry changes. At Tesco Bank, we use this income to contribute to the cost of running our credit cards – including the Clubcard benefits we provide.

How many points will I earn when I use my Credit Card in Tesco?
When you use your credit card in a Tesco store you will continue to receive the same number of Clubcard points as you do currently. This also applies to any spend at Tesco Direct, F&F clothing, Tesco wine by the case and Tesco Filling Stations (excluding Esso Stations).

If you have a Mastercard World or Visa Platinum card there will be a reduction to the Clubcard points you currently earn when you use your card at Tesco.com, however, for all other cards the amount of points you earn when you spend on Tesco.com will remain unchanged.

How many points do I currently earn when shopping out of Tesco?
The amount of points you currently earn when you use your card out of Tesco will vary depending on the type of card you have. Going forward, however, for all our cards you will earn 1 point for every £8 spent when you use your card out of Tesco*.

When will the changes take effect?
The changes will take effect later in the year. The exact date will be made clear in your letter as it will depend on the type of card you have.

Will this affect the points I collect with my Tesco Bank debit card ?
No. Your debit card will not be affected as a result of these changes.

Why haven’t you written to me to tell me that this change is taking place?
We will be writing to all of our credit card customers over the coming months to let them know that this change is taking place. All credit card customers will get advance notice of the change.

Is there a deadline for redeeming my vouchers?
You can continue to redeem your Clubcard vouchers as normal. In line with the Clubcard conditions your vouchers will be valid for two years.

Is the value of my current Clubcard points going to change?
No. The value of the points that you have already collected will remain the same.

Will you be making any future changes?
We do not plan to make any further changes to the Clubcard points you receive.

*1 point for every £8 spent (£8 minimum) in each purchase transaction. Must have available credit to collect points. The Clubcard Scheme is administered by Tesco Stores who are responsible for fulfilling points.
It's not your credit score that counts, it's your credit history. Any replies are my own personal opinion and not a representation of my employer.
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Replies

  • Nearly three million Tesco credit card users will lose out from a cap on the fees card firms charge retailers...
    Read the full story:

    Tesco to slash rewards points for 2.8m credit card users

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    Click reply below to discuss. If you haven’t already, join the forum to reply. If you aren’t sure how it all works, read our New to Forum? Intro Guide.
  • CatslovelycatsCatslovelycats Forumite
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    I've just received a letter about this. I think I shall be spending some time looking to see if there is a better card out there now. Such a shame the Amazon card changed. I've stuck to my Tesco one since then, but as I shop mostly non-Tesco don't find 1p per £8 viable anymore. :(
  • VT82VT82 Forumite
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    May be time to juggle Halifax Clarity and Santander 123 instead of Halifax Clarity and Tesco Clubcard...


    Also, second news headline in a row with the word 'slash' in the title? #thesaurusforchristmasplease
  • I've got a halifax clarity card for travelling and I think I'll just stick with using that as its with my normal bank too. Is a shame as it has helped me build up points for things for goldsmiths stuff a couple of times. It's a bit poor as there interest rate is quite high too
    :T:T :beer: :beer::beer::beer: to the lil one :) :beer::beer::beer:
  • zerogzerog Forumite
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    I've got a halifax clarity card for travelling and I think I'll just stick with using that as its with my normal bank too.

    You do know you get £5 back per month if you spend £300 on the clarity card as long as you've paid in £1000 per month to your current account for 3 months? That's 1.66% and much better than the Tesco earn rate at first... if this isn't a feature on your card at the moment then you can call them to add it
    Is a shame as it has helped me build up points for things for goldsmiths stuff a couple of times. It's a bit poor as there interest rate is quite high too

    If you are paying interest on your credit card, points and cashback are the last thing you should be worrying about. Get a card with the lowest rate or balance transfer to 0% first.
  • minislimminislim Forumite
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    oh well. that's my cancellation confirmed.
  • edited 2 September 2015 at 3:40PM
    1kevfp1kevfp Forumite
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    edited 2 September 2015 at 3:40PM
    Tesco closed down their brilliant Tesco Wine Community web on Saturday and now they are cutting points on their reward scheme , whatever next ? I have had their platinum card for years but will now be going over to Santander in November as that's where we have our dosh at 3% on their 123 accounts

    (FYI - a couple are allowed 3 accounts to max up to £20k eg 1 each name + I joint ):T

    At present Tesco are paying me 1% to shop at the "corner Aldi " and Lidl :rotfl:
  • 20aday20aday Forumite
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    1kevfp wrote: »
    Tesco closed down their brilliant Tesco Wine Community web on Saturday and now they are cutting points on their reward scheme , whatever next ? I have had their platinum card for years but will now be going over to Santander in November as that's where we have our dosh at 3% on their 123 accounts

    (FYI - a couple are allowed 3 accounts to max up to £20k eg 1 each name + I joint ):T

    At present Tesco are paying me 1% to shop at the "corner Aldi " and Lidl :rotfl:

    Tesco are merely following the likes of Capital One and the RBS Banking Group due to the cap on Interchange Fees as imposed by the EU.

    It's highly likely other credit card firms will follow suit unfortunately. I'm hoping Santander don't ditch the 123 card or slash their cashback rates!
    It's not your credit score that counts, it's your credit history. Any replies are my own personal opinion and not a representation of my employer.
  • 20aday wrote: »
    Tesco are merely following the likes of Capital One and the RBS Banking Group due to the cap on Interchange Fees as imposed by the EU.

    It's highly likely other credit card firms will follow suit unfortunately. I'm hoping Santander don't ditch the 123 card or slash their cashback rates!

    Agreed. The only card network not to be massively affected is American Express and even then third party bank issued Amex cards will be capped in 3 years time.

    The sad thing is that small merchants arn't even saving any money. The card networks reduce the interchange but the merchant's bank just up their own admin fees to make it the same as it was before.
  • jonesMUFCforeverjonesMUFCforever Forumite
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    I'm sure most credit cards will slash rewards from November when fees that can be charged by a retailer will be capped at 0.8%
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