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

Moneris Solutions

"Savantor did an outstanding job of the review and I received nothing but positive feedback on the interaction with our management team."

Jeff Guthri, COO - Moneris Solutions - Canada

Business and Platform Strategy

"Savantor successfully advised Rabobank during preparing of the platform migration for cards. Savantor demonstrated thorough knowledge of business processes and market players combined with a practical approach."

Evert Fekkes, Business Information Manager - Rabobank - Nederland

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

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

Payments Workshop Material

"Savantor helped ACI build a payments onboarding workshop for new technical staff in ACI EMEA. Their extensive experience took our outline and built a great starting presentation of industry facts that we have now customised further into a half day session that is used for all new joiners. Our Americas and APAC regions have also taken the material and customised it for their regions. A great job by Savantor has meant new joiners to ACI hit the ground running."

Richard Sanders, Principal Solution Consultant - ACI - Worldwide EMEA

Card Processing Migration

"Disciplined methodology and effective teamwork, guided by Savantor's migration expertise and operational knowledge, were the hallmarks that led to the resounding success of this project, enabling us to maintain and develop our business capability."

Robert Lambert, Head of Cards Strategy - Permanent tsb bank - Ireland

Expert Witness

"After searching extensively for the required industry expert in a complex litigation, Savantor was identified to have the necessary industry knowledge and expertise on a range of complex issues. Savantor provided clear advice and was able to quickly hone in on the key issues, but most importantly, generating pragmatic winnable answers."

Gavin Ingram, General Counsel & VP Strategic Planning - Global Blue - Asia Pacific

Interchange Review

"Savantor did a superb job in confirming what we believed was an area of weakness. The detail we now have will enable us to agree internally what we need to do to improve structure, control and income. Nationwide management were very impressed with the quality of the Savantor team."

Adam Slater, Senior Manager - Banking - Nationwide Building Society - UK

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.