Tesco cuts value of Clubcard points
By UK CreditCards
Tesco confirmed plans to cut the value of Clubcard points with its partner organisations. The supermarket giant sent out details to members of its loyalty scheme, alerting them to the changes that will take place in the near future. As well as altering its partner rewards rates, Tesco is slashing the number of points earned when purchasing fuel -- although customers who purchase their petrol with a Tesco Clubcard credit card will still be able to earn the same number of Clubcard points as before.
From December 6, all existing rewards with a 4x exchange rate will move to a 3x rate, Tesco has confirmed. For instance, while a person with £10 of Clubcard vouchers could previously exchange them for £40 in partner organisation rewards, this value will now fall to £30.
According to Tesco, the decision has been taken so that it can continue to offer double points, thereby giving customers "more value to spend with our rewards partners." The supermarket also revealed that changes to its 'buy in full' rates will provide Clubcard members with some "really great deals."
Another important change that Tesco is making concerns the Clubcard points that can be earned when buying fuel. As of November 1, customers will only earn one point for every £2 spent at the pump, rather than two points.
Fortunately, savvy consumers can escape the reduction in points by obtaining a Tesco Clubcard credit card and using it whenever they fill up their tank. This is because Tesco Clubcard credit cardholders will continue to earn two points for every £2 spent on fuel, on top of any points earned from Tesco Bank for using the card in the first place.'Majority better off'
Tesco insists that, thanks to the double points initiative, the "vast majority" of customers will be better off after the changes. A spokesperson told Marketing Week that the original 4x exchange rate "was putting a lot of demand on our partners and if we wanted to keep double points, we had to find a way to keep it sustainable".
However, it is clear that those who rely on fuel points to build up their balance will need to apply for a Tesco Clubcard credit card to ensure they do not lose out. As well as allowing them to earn two points for every £2 spent on fuel at Tesco, the credit card also offers successful applicants zero percent interest on all purchases for 13 months, zero percent interest on balance transfers for nine months, and the opportunity to collect even more Clubcard points when they use their credit card anywhere in the world.
Published: 27 October 2010
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