Further Santander Cuts, this time to the 1-2-3 Credit Card Cashback

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Further Santander Cuts, this time to the 1-2-3 Credit Card Cashback

The Santander 123 credit card, had its monthly fee increase from £2 to £3 recently.
From February 2017, they are capping the maximum amount of cashback one can obtain in each of the three areas at £3.

So supermarket spending a 1% maxed at £3.
Department store spending maxed at £3.
Fuel spending maxed at £3.

So most 'profit' you can make is £6.

Big change for us, although we do little or no department store spending, buy buying our shopping in Tesco and fuel in Tesco, we currently get cashback in those two groups around £14-15 a month, for the £3 fee.

So instead of it being worth £11 a month, it'll drop to £3.
Nasty.

Santander blame interest rate changes, and frankly that smells of toss.
They were able to offer this as many of the major players had their banking through Santander, and their card facilities through Santander, so the cashback they offered was simply something on the rate they were hitting the retailers for in the first place.
That hasn't changed.

What alternatives are people making use of currently, or planning to, and to what degree?
 
Halifax current account just dropped their £5 monthly reward to £3.

The blockchain can't happen soon enough.
 
I see them as a necessity, to be honest.

I'd much rather keep my money in Banks with at least some regulation if things goes pear shaped than in bitcoins and the like. Seen enough people get burned with the various hacks that went round.
 
Uther said:
Santander's quickly gone from good to 'meh'
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Indeed, and all it took was a 0.25% cut in interest rates ;)
Yeah, that's the cause, honest gov!

Fees from £2 and £2, to £3 and £5, and now a limit on the amount of cashback. All account interest rates slashed, and indeed rates on savings accounts actually worse than rates on their 123 for the first £20K.

Shame the others were all already tat, they've joined the horde.
 
Hikari Kisugi said:
Indeed, and all it took was a 0.25% cut in interest rates ;)
Yeah, that's the cause, honest gov!
Click to expand...
Its not so much the rate but the amount of cheap capital the BoE is bumping in to keep things moving.

Banks no longer need consumers capital to keep their lending/investment operations going hence perks being reduced. Retail customers make hardly any profit in the grand scheme of things.

Once their cost of capital goes up again then these sorts of things will come back but it could be awhile.
 
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This is because of the cap on interchange fees. The cashback was paid for by the fees merchants paid per transaction. These fees have been slashed, so no more fun cashback.
 
[TW]Fox;30231016 said:
This is because of the cap on interchange fees. The cashback was paid for by the fees merchants paid per transaction. These fees have been slashed, so no more fun cashback.
Click to expand...

Beaten to it.

The income they earn from merchants is now far lower. It came into effect in 2015 making these cards unsustainable. Santander must have finally decided they were losing too much money. I bet they weren't making much additional revenue from the money savvy customers the card was attracting.

http://www.theukcardsassociation.org.uk/Interchange/index.asp

Apart from American Express, the highest cashback cards out there are only 0.5% for all spending.
 
Banks screwing people over once again, its always the same. :rolleyes:

I think am free in about 2 years so I will go raping them again for as much as I can for hits and giggles. :D

I wont be paying much back that's for sure! :eek:

F'em they make money out of thin air. :mad::mad::mad:

I hate banks with a passion, am out of this topic.

PS we with Santander and have a 1-2-3 account.
 
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