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Barclaycard American Express customers to lose 1% cashback deal

Cardholders to be switched to new Visa 0.5% cashback card instead.

Almost half-a-million Barclaycard customers will see their Amex replaced with a new card offering only half as much cashback.

It has written to customers informing them they will be moved to a new Visa card this summer, which pays a lower cashback rate of 0.5%, compared to the current 1% deal.

Some customers have already been notified of the change and will see their cards automatically changed in July, while the remaining customers will be written to this week and have their new cards issued in August.

Customers’ existing credit limits and interest rates on purchases and cash withdrawals will remain the same. There is no cap on the amount of cashback a customer can earn.

A spokesman for Barclaycard told Which? Money the move was because its partnership with Amex is coming to an end.

How does the new card compare?

If you are one of those customers affected, you may want to consider getting a new card as there are cashback cards on the market which can better the 0.5% deal.

  • Amex’s Platinum Cashback Everyday Credit Card gives cardholders 5% cashback for the first three months up to £100 and then 1% on purchases after if you spend more than £5,000.
  • Amex’s Platinum Cashback Credit Card also offers 5% cashback for the first three months but up to a maximum of £125. You’ll get 1.25% on purchases after the three months if you spend more than £10,000. It also comes with an annual fee of £25 a year.

With all cashback cards, it’s important that you clear your balance every month otherwise the interest charged is likely to outweigh any rewards earned.

Many banks and building societies also offer cashback on monthly bills. See our online tables to see what account might be suitable for you.

End of the partnership

A spokesman for Barclaycard said: ‘Our partnership with American Express is coming to an end, meaning we are unfortunately no longer able to continue offering the Barclaycard Cashback product.

‘Consequently, we are replacing it with a new card that offers a competitive rate of cashback and continues to give something back to our customers when they pay using their Barclaycard.

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