You are here: Home - Credit Cards & Loans - News -

New cashback scheme launched for credit card shoppers

Written by:
MBNA has launched a reward programme, offering credit card holders the chance to earn cashback on their spending.

The Smart Rewards scheme, which has been launched in association with financial tech firm Cardlytics, allows shoppers to get up to 15% cashback when they spend with partner retailers. 

Cardholders can browse through the Smart Rewards hub either online or through the MBNA app, where they will be presented with a range of offers tailored to them. MBNA says that it regularly digs into cardholders’ shopping habits, so that it can ensure that the deals you are presented with are the most likely to be relevant, for example if they are with a retailer which you regularly shop with.

Cashback from qualifying purchases is then paid back into your MBNA account at the end of the month, while you can keep track of how much cashback you’ve earned so far or if any cashback is still pending through the app.

The cashback you earn will reduce your outstanding card balance, but it won’t count towards your minimum payment each month.

Retailers that have partnered with MBNA for the scheme include the likes of Harvey Nichols, American Golf, Cult Beauty, Hilton, Co-op and Costa Coffee.

Elyn Corfield, managing director at MBNA, said: “During what has been a challenging time, we’re excited to have launched our new Smart Rewards, offering our customers a little extra  for  spending with us. Through personalised and relevant offers, our customers will be able to earn more on their purchases at selected retailers, with cashback added to their accounts at the end of every month.”

The move follows Virgin launching its own cashback scheme for credit card holders back in February.

Getting something back when you spend

There are all sorts of rewards credit cards that offer you something back when you spend with your card. While MBNA offers larger rewards when you shop with specific retailers, others offer smaller rewards which you pick up each and every time you spend, no matter where you spend that money.

This reward may be in the form of loyalty points, like Clubcard or Nectar points, which you can then use to reduce the cost of your shopping. Alternatively you can convert them into vouchers ‒ often at up to three times their initial value ‒ to spend with partner retailers.

And then there are cashback credit cards, which as the name suggests, reward shoppers with cold, hard cash each and every time they use their card. This is generally calculated as a percentage of the money you spend, with the first few months of card ownership often providing a boosted rate of cashback. You can then use that money however you please.

Getting the most from a rewards card

Whichever form of rewards card you go for, there are a couple of key things to bear in mind. The first is that in order to maximise rewards, it’s a really good idea to put as much of your usual spending on the card as possible.

However, it’s crucial that you don’t use this as an excuse to spend more than you normally would. There’s no point getting into debt simply so that you can pick up a few extra Clubcard points or pennies in cashback.

Finally, these cards are really only an option for those who clear their balances in full every month. Otherwise the interest charged on your outstanding balance will swiftly wipe out the value of any rewards ‒ whether that’s points or cashback ‒ that you earn through your spending.

There are 0 Comment(s)

If you wish to comment without signing in, click your cursor in the top box and tick the 'Sign in as a guest' box at the bottom.

The savings accounts paying the most interest

It’s time to get your finances in shape, and moving your cash savings to a higher paying deal is a good plac...

Everything you need to know about being furloughed

Few people had heard of ‘furlough’ before March 2020, but the coronavirus pandemic thrust the idea of bein...

The experts’ guide to sorting out your personal finances in 2021

From opting to ‘low spend’ months to imposing your own ‘cooling-off period’, industry experts reveal t...

What will happen if rates change

How your finances will be impacted by a rise in interest rates.

Regular Savings Calculator

Small regular contributions can build up nicely over time.

Online Savings Calculator

Work out how your online savings can build over time.

Having a baby and your finances: seven top tips

We’re guessing the Duchess of Cambridge won’t be fretting about maternity pay or whether she’ll still be...

Protecting family wealth: 10 tips for cutting inheritance tax

Inheritance tax - sometimes known as 'death tax' - can cause even more heartache for bereaved families. But th...

Travel insurance: Five tips to ensure a successful claim

Ahead of your summer holiday, it’s important to make sure you have the right level of travel cover or you co...

Money Tips of the Week

Privacy Preference Center