The mutual confirmed that the 0.25% cashback on the Select Credit Card will no longer be offered from 1 December 2020, though cardholders can accrue cashback until 30 November 2020.

It said there are approximately 960,000 card holders who are currently eligible to earn cashback until this end date.

The 0.25% cashback currently applies to all purchases in pound sterling and the changes will impact existing cardholders after the product was closed to new applicants in November last year.

Nationwide said that as of the end of August 2020, 78% of customers eligible for cashback had earned less than £10 in cashback so far this year.

It added that once the cashback ends, customers will still benefit from commission free transactions abroad.

A spokesperson said: “While we continue to support our members during the pandemic, like many businesses, however, we are not immune to the financial impacts of Covid-19.

“The removal of cash reward from our back book will help ensure the future sustainability of our credit card offering, as well as continuing to offer the benefits members value most, such as commission free transactions overseas.”

The Nationwide Select Credit Card originally offered 0.5% cashback before being cut to 0.25% in January 2018.

Cashback rewards slashed

The Asda Cashback Credit Card offered 1% in Asda stores and 0.2% elsewhere. It was pulled on 13 July as Asda confirmed it was ending its contract with credit card provider Creation.

In February, Aqua also pulled its 0.5% cashback credit card for new applicants, just weeks after Tandem Bank withdrew its popular free cashback credit card from the market for new customers.

According to data site Moneyfacts, there were just eight cashback credit cards on the market this summer – the lowest number seen in a decade.