More than 75,000 MBNA credit card customers face losing their rewards points and cashback perks after the provider announced plans to close two card accounts.
Account holders with an MBNA Rewards Credit Card or MBNA Credit Card with Cashback will no longer be able to earn any reward points or cashback after 22 September 2017, with a final cashback payment being processed in October.
Users of these two American Express cards must also redeem any reward points that they have accrued by 30 November 2017, or lose their points.
The provider estimates around 76,000 customers will be affected by the changes. Each user will be sent an MBNA Visa credit card, which does not offer any cashback or rewards.
Customers will receive this new card by the end of November 2017 but can continue using their current cards until the replacement arrives.
Those customers who do not wish to transfer to the new card will be given the option of paying off their remaining balance and closing the account, or given the opportunity to apply for another credit card in the MBNA range.
MBNA no longer offers any MBNA-branded reward or cashback cards, but it does manage the reward credit cards offered through airlines such as Emirates and Virgin Atlantic. Details of these accounts can be found on the MBNA website.
‘We are contacting all impacted customers’
MBNA says it is making changes to its rewards and cashback cards to ensure it remains in line with the rest of the market.
It blames changes to the way providers are able to charge ‘interchange fees’ for the squeeze on rewards and cashback cards. European Union legislation introduced in December 2015 restricted the amount card companies could earn from retailers.
A spokesperson for MBNA says: “Like many brands in the market, due to changes in legislation which impact rewards payouts, we regret that we are no longer able to offer certain MBNA rewards and cashback cards to certain customers.
“We are contacting all impacted customers to let them know about these changes and how they can redeem any reward points that they have accrued. Any cashback that customers have earned this year will be paid to them by the end of October."
What are the best credit cards for cashback?
If you’re looking to switch away from MBNA, then the American Express Platinum Cashback Everyday Card has an introductory offer of 5% cashback on spending up to £100 for the first three months. After that, cardholders will earn 1% cashback on spending over £5,001 per year and 0.5% if they spend below this amount. The card has a representative interest rate of 22.9% APR variable.
Another option is the Aqua Reward Credit Card. Customers will receive 0.5% cashback on all spending up to a limit of £100 per year. This card is designed for those with a poor credit history (although anyone can apply) so beware of the high interest rate. Pay this card off in full every month to avoid paying the representative 34.9% APR variable on your balance.
If you want to earn reward points there are six Moneywise Best Buys to choose from. The Amazon Platinum Credit Card, Asda Money Cashback Credit Card, John Lewis Partnership Card, M&S Bank Shopping Plus Credit Card, Sainsbury's Bank Nectar Purchase Credit Card, and the Tesco Bank Clubcard Credit Card are all worth considering – depending on where you shop.
Read Moneywise’s guide to the week’s best rewards credit cards to find out more details.