Asda launches 2% cashback credit card, but is it any good?

Asda cashback card

Asda has launched a new cashback credit card, paying up to 2% interest on certain spending, though people considering the card will need to decide if it’s worth the £3 monthly fee.

The new Cashback Plus card pays 2% cashback in Asda vouchers on shopping in Asda, including fuel, online and George, Asda’s clothing range. Purchases made in other retailers will earn a 1% reward.

The Cashback Plus Card also offers 0% balance transfers for 15 months, and six months’ 0% interest on purchases from, providing you spend an initial £200.


Asda already offers a fee-free Cashback Credit Card, which rewards Asda shopping with a 1% bonus, and 0.5% on rewards spent elsewhere. This isn’t changing.

Asda’s Cashback card has a 19.9% APR representative, while the Cashback Card Plus is 26.2% APR representative, including the monthly fees.

Moneywise verdict

Someone who only uses the card in Asda will need to spend at least £300 each month before the cashback earned outweighs the £3 monthly fee - if you spend less than £300, you'd be better off with the fee-free card.

Also, despite the name, Asda’s cashback cards are arguably more like a loyalty scheme, as members are paid Asda vouchers instead of cold hard cash when they come to collect their reward. 

Currently, the best cashback deal on the market is American Express's Platinum Cashback Card, although its terms were recently made a bit less generous.

There's an introductory offer of 5% cashback on spending up to £2,500 over the first three months. After which, cardholders will earn 1% cashback on spending up to £10,000 and 1.25% on any further spending. There's a £25 annual fee.

If you spend £3,000 over the course of a year you'll earn £35 after fees are deducted. The APR representative is 28.2% including the fee. You’ll need to bear in mind that American Express is less widely accepted than Visa or MasterCard.

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Your Comments

This article is wrong and misleading. Simple maths says that you need to spend £150 in Asda per month to cover the £3 fee. Not £300. As petrol, is included, that's really not that much, partioularly for a fmaily. And if you spend elsewhere (which everyone does), so much the better. If 'other retailers' includes most retailers, most people should benefit. Though for £3 a month you could have teh Santander 123 card which gives 3% back on petrol, trains etc, 1% at supermarkets and 2% at  department stores - so it's horses for courses, depending on your spending pattern. 

hi Sel1map,

Thanks for getting in touch. 

I've added a line to clarify - I mean if you spend less than £300 a month, you're better off picking the fee-free card.

You're right, spend £150 in Asda and you'll get more cashback than you'll pay in fees - but spend £150 to £300 and you'll get less cashback than you'd have got with the other Asda offer.