MBNA with­draws its Amex Re­wards and Cash­back credit cards

The Daily Telegraph - Your Money - - YOUR MONEY - Amelia Mur­ray

MBNA is scrap­ping two pop­u­lar Amer­i­can Ex­press re­ward credit cards next month, af­fect­ing more than 75,000 cus­tomers.

The firm’s Re­wards Credit Card and Credit Card with Cash­back have not been avail­able to new cus­tomers since Oc­to­ber 2015. But ex­ist­ing card­hold­ers have now been told that from Sept 22 they will no longer be able to earn points or cash­back.

Cus­tomers will be sent a new Visa credit card, which MBNA said will ar­rive by the end of Novem­ber. The ma­jor­ity of cus­tomers cur­rently earn one point per £1 spent or 0.5pc cash­back on pur­chases.

Re­ward points must be re­deemed by Nov 30. Cash­back earned in 2017 will be paid into the cus­tomer’s ac­count by the end of Oc­to­ber.

MBNA blamed the with­drawal of the two cards on changes to EU leg­is­la­tion in De­cem­ber 2015, un­der which debit and credit card fees were capped.

Be­fore the reg­u­la­tion was in­tro­duced, re­tail­ers paid an av­er­age rate of 0.8pc per credit card trans­ac­tion and 9p for debit cards. In De­cem­ber 2015, the fees were capped at 0.3pc for credit cards and 0.2pc for debit cards. Banks feared los­ing mil­lions of pounds a year so credit card providers be­gan to cut the cash­back and re­wards they of­fered to cus­tomers. Amer­i­can Ex­press’s Plat­inum Cash­back Ev­ery­day credit card of­fers new card­hold­ers 5pc cash­back up to £100 in the first three months as long as you spend £3,000 in a year.

Af­ter three months, the card of­fers up to 1pc cash­back if you spend more than £5,001. If you spend less, you’ll earn 0.5pc. Amer­i­can Ex­press also has a Plat­inum Cash­back credit card that pays 5pc cash­back up to a max­i­mum of £125. The rate then drops to 1.25pc on spend­ing over £10,001, or 1pc on smaller sums. There is a £25 an­nual fee.

Asda’s Money card pays 1pc on spend­ing at Asda and 0.5pc else­where. Its Cash­back Plus card of­fers 2pc cash­back on Asda spend­ing and 1pc on other pur­chases but costs £3 a month.

San­tander’s Ev­ery­day credit card of­fers 0.5pc cash­back and five “wel­come of­fers” that give bor­row­ers between 5pc and 25pc at se­lected re­tail­ers. You can also opt in to its re­tail of­fer scheme, which could earn you 15pc cash­back. It costs £3 a month.

How­ever, some have al­ready with­drawn their cash­back cards. Cap­i­tal One, one of the big­gest credit card providers, was the first and scrapped all of its re­ward cards in April 2015. A month later, RBS and NatWest an­nounced the end of the “YourPoints” scheme.

Tesco Bank has cut back its of­fers. From Novem­ber, cus­tomers need to spend £8 out­side Tesco to earn one Club­card point, in­stead of £4 pre­vi­ously.

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