This may be tenuous, but I suspect there is life in the old cash back cards yet. Credit card reward schemes have always provided consumers with some interesting propositions. Incentives to ensure consumers use their credit card have come in all shapes and sizes – airmiles and cash back led the way.
As the big supermarkets have entered the finance market, and rewards schemes like the Nectar card have become established, credit card issuers have followed with a range of points-based retail schemes. Early this year Barclaycard launched its Freedom rewards scheme and Egg beefed up its points programme. American Express, the flagship issuer of reward programmes, has also had some wonderful airmiles promotions running recently.
From a comparison perspective, it quickly becomes hard to compare the different rewards schemes in a meaningful way, as they work in such a variety of ways. Depending on how you decide to use a particular rewards card, it can be of greater or lesser benefit.
In these uncertain, confusing times, a simple, easy to understand reward, which can be used universally, may have appeal. The traditional cash back card would seem to fit the bill. Issuers such as Capital One and RBS/NatWest with their World cards have been testing the water recently. Could they begin to compete with the Amex Platinum cash back card? Could cash back cards start to take on the points-based rewards cards and become king of the rewards once more?
