New cashback credit card deals hit the market

By UK CreditCards.com

Britons who wish to be rewarded for their credit card use may be interested to learn of a number of new cashback credit cards that have been launched.

American Express's Platinum Cashback Credit Card was introduced this week, while details about the Santander 123 Cashback Credit Card, which is due to launch on September 5th, have also been published. These cards come hot on the heels of Capital One's latest offering, the new World MasterCard.

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Santander 123 Cashback Credit Card
Santander claims to have introduced a "revolutionary" concept with its new '123' credit card. The card offers a sliding scale of monthly rewards for different types of spending, with customers benefiting from 1% cashback on supermarket spending, 2% on department store purchases and 3% on fuel. The latter reward is capped at £9 per month.

Available to both new and existing customers, the card has a purchase rate of 18.9% (variable) and comes with an annual fee of £24. However, Santander claims that the average family with two children could earn up to £217 cashback per year.

"We're very excited to be bucking the trend for balance transfer cards, changing the way customers use their credit card as we will be rewarding their loyalty over the long term," said Callum Gibson, managing director of Santander Cards, in a statement.

American Express Platinum Cashback Credit Card
American Express's latest proposition is designed to reward long-term loyalty. It offers an ongoing flat rate of 1.25% cashback on all purchases, with no maximum limit on the amount earned. In addition, there is a 2.5% introductory cashback rate for the first three months (up to a maximum of £100), as well as a potential loyalty bonus of 2.5% cashback during the customer's anniversary month each year, with no upper limit on the amount earned. The card has a £25 annual fee, with cashback paid on an annual basis. The purchase rate is 14% per annum (variable), while the representative APR is 18.5% (variable), including the annual fee.

"This product is about rewarding customers over the long term so that, year in, year out, customers who use the card continue to reap the benefits of a consistently good cashback rate. We want to ensure that our card members continue with us over the long term by rewarding them significantly on an ongoing basis," said Julie Hay, head of credit cards at American Express, in a statement. 

Capital One World MasterCard
The Capital One World MasterCard (19.9% APR representative variable) could be the ideal choice for those seeking a cashback card with a good introductory offer. Cardholders enjoy 5% cashback on all purchases made during the first three months (up to £100), followed by up to 1.25% cashback thereafter, depending on their level of spending. Unlike the previous two cards, there is no annual fee and the provider also offers free access to Equifax's Identity Alert service, which helps to fight identity theft.

The company launched its new cashback card after its research found that one in three credit card applications over the next three to 12 months is likely to be for this type of card.

"It's no surprise that cashback credit cards have become increasingly popular as they offer potentially a better way of generating a return from spending than debit cards. We're expecting this card to generate a high level of interest amongst consumers who will recognise this as one of the best cashback deals available on the market," observed Managing director Brian Cole in a press release.

See related: Rewards cardholders in the minority; Cashback credit cards can bridge savings

Published: 19 August 2011