Virgin Money unveils new credit card cashback scheme
Card customers need to register for the scheme, and they will then receive personalised offers from a host of partner retailers. Offers don’t need to be activated however ‒ they are allocated automatically, which Virgin said means card holders can simply shop with retail partners and earn rewards.
Partner retailers at launch include the likes of Aveda, Caffe Nero, Coach, Crew Clothing, Europcar, Gousto, MAC, Matalan, P&O Ferries and Sunglass Hut, with more promised in due course.
Virgin Money Back is available to all Virgin Money credit card users, including those with Virgin Atlantic cards who have the ability to earn cashback as well as the Virgin Points they already receive for their spending.
Users can register for the scheme, see what offers are available and manage their rewards balance using the Virgin Money credit card app.
Any cashback earned will usually be available for card holders 35 days after their purchase, and can be moved into a current account or used to pay off some of the credit card balance.
Fergus Murphy, group personal director at Virgin Money, said: “We aim to help our customers live and bank in a more rewarding way, and our new Virgin Money Back programme delivers on that by turning credit card customers’ everyday spending into cashback rewards.
“We’ve made it as simple as possible for customers to use – there is no need to spend time searching for what offers are available and activate them, ensuring that customers will always benefit from the reward offers available to them.”
Earning as you spend
The new scheme works rather differently from the way that cashback is paid by other credit card schemes, where you receive back a small percentage of the money you spend with any retailer, not just partner shops.
For example, the American Express Everyday card pays 5% cashback on your spending for the first three months (capped at £100) followed by a rate of up to 1% thereafter. The American Express Platinum pays a higher rate after that initial three months at up to 1.25%, but there is a £25 annual fee to account for.
However the range of cashback cards you can select from has dropped significantly in recent years as providers have pulled deals. Last year for example saw Nationwide pull its Select Credit Card cashback scheme, while Asda ditched its own cashback scheme.
Whatever form of cashback card you go for though, it remains crucial that you pay off your balance in full each month. Otherwise the interest charged on your outstanding balance will quickly erode the value of any rewards you build up.