Tesco cut value of ClubCard points by half for credit card holders
The millions of people who have a Tesco credit cards have some bad news this morning - Tesco have halved the value of the ClubCard points they get. This is thanks to new laws that have forced a number of high street lenders to pull back on their cashback offers.
Regarding Tesco, around 2.8m make savings with Clubcard points if they use their Tesco credit card, which can be redeemed at a host of places and businesses.
However, as of November, Tesco Bank will halve the earnings that customers make on shopping they've bought outside of Tesco. The company said that this new ruling was "disappointing" but they had to do it thanks to an EU cap on the amount card providers earn from shops.
With Tesco being a big player, it is obvious that if they reduce their deals, other businesses will follow.
A number of banks have dropped their incentives too, such as RBS and NatWest, with the closure of the 'YourPoints' scheme that paid 1p per £2 on purchases. They'll also be getting rid of the Cashback Plus credit card bonuses at the end of the month.
This could well mean that Sainsbury's Nectar points will be affected, as well as the cashback paid on Santander's 123 Credit Card.
Credit card issuers earn money from each customer thanks to these incentives. A Tesco spokesperson said: "We use that income to fund the Clubcard benefits we give back to our customers. As a result, we've had to make some changes to the amount of points our customers earn."
"We are disappointed that the industry changes have resulted in the need to reduce the Clubcard earn rate on our cards when they are used outside of Tesco."