News & Views - Savantor

Cashback card rules confusing?

Friday, 16 September 2011

An old proverb suggests you can’t have your cake and eat it (although I’ve always thought it makes more sense to say you can’t eat your cake and have it!) but in the cashback card world it seems you can’t have your card and understand it. Lovemoney.com recently did some research into this but it still seems like you need a Maths degree to understand the rules. Here’s a sample - American Express recently changed the way that cashback is earned with their card. You now earn 2.5% cashback on everything you spend in the first three months, up to a maximum of £100 cashback (after that, you’ll earn 1.25% on everything you spend). After the first three months the cashback rate drops to 1.25% regardless of how much you spend. Amex will also pay 2.5% cashback every year, during the month following the anniversary of the day you took out the card. So you need to remember the date you took it out. But Amex will also now charge you £25 a year as a fee for using this card. So, after the first year, you need to spend £2,000 every year on your Amex card to break even.

The Capital One World Card pays 5% cashback for the first 99 days, up to a maximum of £100 cashback (so there’s no point spending more than £2,000). After the first 99 days are up, the amount of cashback you earn depends on how much you spend. You earn 0.5% cashback if you spend up to £6,000 a year, 1% cashback on all spend between £6,000 and £9,999 a year and 1.25% cashback on all spend above £9,999 a year. Still keeping up?

The Santander 123 cashback card which recently launched offers 1% cashback on supermarket spending, 2% cashback on department store spending, 3% cashback on petrol (up to a maximum of £9 cashback a month, which is a maximum spend of £300 a month on petrol). This card also has a £24 annual fee. So, just to break even, every month you’d need to spend a minimum of £200 at the supermarket, or £100 at a department store, or £67 on petrol.

And that’s all there is to it.

Savantor Services

Savantor Services

Savantor services are tailored to Client needs based on our core service areas

Specialist Resourcing Payments Strategy Platform Transition Operational Efficiency
Savantor Services

Job Opportunities

Consulting and contracting roles in the payments, mobile and banking arena within the UK and across Europe

View more
Savantor Services

Savantor Views

Find out more from our Savantor brochures, MarketEye back copies and Industry opinion

Collateral Market Eye News & Views Sign Up to receive MarketEye

Client Quotes

Credit Risk Review for New Product Launch

"We needed expert help at short notice and Savantor were very impressive in their response and knowledge. The results were very clear and useful, enabling us to quickly make good progress on the next steps."

Sami Karhunen, Head of Business Intelligence and SME Sales - Point Transaction Systems Oy - Finland

Collections Transformation

"Savantor did an absolutely superb job for us on the Collections programme. The professionalism, hard work, courtesy and tenacity of their experts is a credit both to the individuals and to Savantor."

Peter O'Dea, Senior Manager - Collections Department - Permanent tsb bank - Ireland

Payment Specialists

"Working close with Savantor's professionals over the years in the payment arena. I appreciate the skills and knowledge these guys have and will surely engage with them when opportunities arise. The current engagement with Savantor is full to satisfaction and beyond."

Idsert Walta, Head of Banking Categories - Nordea - Scandinavia

Platform Selection & RFP Management

"OP-Pohjola Group has used Savantor in both acquiring and issuing for platform/service provider research, RFI/RFP processes and subsequent contract negotiations. Savantor's approach and commitment have always been very professional and transparent. They have been of great help for the company in providing us important insights and background information beyond vendors sales speeches."

Kai Lindstrom, Head of Acquiring - OP-Services Ltd - Finland

Credit Card Launch

"Savantor's knowledge and experience were the key differentiators in selecting them and they contributed greatly to the success of the product launch and the effectiveness of the ongoing operational service."

Toine Schepers, Operations Director - Primeline - The Netherlands

Payments Platform Strategy and Sourcing

"We were in urgent need of external independent expertise to supplement our internal resources. Senior consultants had to quickly integrate with our team and actively contribute. Their experts quickly forged strong working relationships and delivered to our brief. We enjoyed working with them to develop our future platform strategy."

Evert R Fekkes, SVP - Payment & Savings Services - Rabobank Nederland

Credit Card Migration and Operational Support

"The bank has undergone significant transformation of its card business on both the issuing and acquiring sides. One business partner we have looked to for support in the areas of strategy, major project leadership, management analysis and ongoing business support is Savantor. The Savantor team has contributed to our success as we have leveraged their deep industry knowledge and broad range of operational skills."

Sean Sheehan, Service Management Director - Bank of Ireland

Complex Multi-Country Migration

"This complex migration, undertaken simultaneously in Spain and Portugal, has been a complete success. Savantor has provided us with excellent support for over 3 years, both in the original business transformation programme and now this double migration. We value their open and honest approach to business, and of course the expertise that they bring."

Ricardo Gomez, Director, Operations & Technology - WiZink Bank – Spain & Portugal

Clients - Request Support

Send us a support request and one of our specialists will be in contact to assist you.

Consultants – Upload your CV

Register your CV with us and gain access to a range of job opportunities through our online job search portal.