More credit card reward deals scrapped RBS points scheme to close on July 1

29 May 2015

Reasons to get a credit card

Royal Bank Scotland (RBS) has revealed that its ‘YourPoints’ reward scheme will be closed on 1 July. 

The bank has become the latest credit card provider to cut reward and cashback deals after a ruling to cap the amount they can earn from transactions. 

RBS said that the impact of the ruling meant it was no longer able to ‘recoup the costs’ of offering a reward scheme. 

Affected NatWest and RBS customers can only earn points until 30 June. Points must be redeemed by 31 October 2015. 

Which? Money Compare Table - Reward credit cards - dozens of cards compared 

Capital One cashback deals to be pulled  

The announcement from RBS follows a similar move by Capital One, which was the first major credit card provider to pull the plug on a number of its cashback and reward cards. 

From 1 June, customers will see their cashback deals either removed or reduced for products that Capital One has deemed to be ‘unsustainable’. The cap on so-called ‘interchange’ fees is due to take force in October. 

Credit card companies will see the amount they earn from transactions fall from as much as 1.85% to a maximum of 0.3%. Debit card fees will be capped at 0.2%. Reward and cashback schemes have traditionally been funded from the revenue earned through these so-called interchange fees. 

The cap on interchange fees only applies to cards on the Visa and MasterCard networks. Credit cards using American Express are currently unaffected by the changes. 

The Which? Money Compare credit card tables let you search hundreds of cards from providers large and small to choose a great deal based on quality of service as well as cost and benefits.

Which? Money Compare Table - Cashback credit cards - find a great deal

Santander cashback deals

Other companies are still deciding whether they can afford to offer these lucrative rewards. 

Santander, which runs the enormously popular 123 cashback schemes for its current account and credit card, did not rule out the possibility of future changes. 

It said that the change ‘impacts the economics of any card business, and we will need to reflect on how to ensure we maintain the right balance’. 

More on this...

Which? Limited is an Introducer Appointed Representative of Which? Financial Services Limited, which is authorised and regulated by the Financial Conduct Authority (FRN 527029). Which? Mortgage Advisers and Which? Money Compare are trading names of Which? Financial Services Limited.