Cashback set back for credit card users
05/04/2005
Cashback services on credit cards have been considerably reduced by more than a dozen credit card providers, Moneyfacts has revealed.
The service is traditionally popular with people who like to pay off their bills in monthly installments.
It allows customers to accrue between one and two percent on every purchase they make with the card, earning it back in either monthly or yearly installments.
"In recent months it has become more apparent that providers are feeling the pinch, not just from the cashback rates they offer but also the interest free deals," said Samantha Owens of Moneyfacts.
Jason Clarke, senior media relations officer at Halifax, defended this decision: "In credit cards, that's the way the market is going . . . the way the cards are being used mean that [the old level of cashback] is no longer feasible.
He went on: "It was not a case of moving from one to the other, they were very separate decisions and not linked."
The service is traditionally popular with people who like to pay off their bills in monthly installments.
It allows customers to accrue between one and two percent on every purchase they make with the card, earning it back in either monthly or yearly installments.
"In recent months it has become more apparent that providers are feeling the pinch, not just from the cashback rates they offer but also the interest free deals," said Samantha Owens of Moneyfacts.
Jason Clarke, senior media relations officer at Halifax, defended this decision: "In credit cards, that's the way the market is going . . . the way the cards are being used mean that [the old level of cashback] is no longer feasible.
He went on: "It was not a case of moving from one to the other, they were very separate decisions and not linked."
