Companies ditch credit card rewards
Credit card companies are increasingly stopping rewarding customers with beneficial rates and special perks, finds a new report.
Sainsbury's Bank has recently announced that it is withdrawing its free cashback and reward schemes.
The Bank had previously been offering 0.25 per cent cashback on purchases with Nectar Points. This has now been stopped for new customers, although it will continue for existing customers, in a bid to boost profits.
Most experts are blaming the zero interest rates on balances for causing the withdrawal of rewards as not only is this costing the card companies money, but it is also taking away their incentive to lure away customers from other providers.
'With zero per cent interest deals reportedly costing the card industry in excess of £1 billion per year and many high street banks reporting a steep increase in bad debts, it is not surprising to see providers taking measures to reduce their costs,' said Samantha Owens, head of research at Moneyfacts.co.uk.
'It is now becoming increasingly difficult for customers to find a card which offers them the kind of benefits that were common place a year ago.
'Not only have cashback deals been severely cut or in a number of cases totally withdrawn, but incentives such as Nectar points and AirMiles are also less widely available,' she added.
Other banks and credit card providers who have ditched their reward and cashback schemes include Egg, Blue Amex, HBOS, and Mint. | 
