Clubcard rewards are cut by half

TESCO credit card customers have suffered a 50 pc cut in the number of Clubcard loyalty reward points for shopping outside its stores.

Some 2.8 million customers earn point-based rewards for everyday spending, which can then be redeemed in store, at restaurants or for days out.

For months, Tesco has paid one bonus point (worth 1p) for every £ 4 spent on its card, regardless of whether shoppers used it in its stores or elsewhere.

While this won’t change for spending at its own tills, you’ll now need to spend £8, instead of £4, to earn one point outside its shops. Tesco blames new European regulations, which limit the amount card providers can earn from shop transactions.

Others that have curbed their loyalty schemes include Sainsbury’s, which halved the number of Nectar loyalty points on shopping earlier this year.

Elsewhere, banks including RBS and Capital One have already cut cash incentives paid on credit cards as a result of the changes.