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- Tandem is replacing its cashback credit card with a new premium membership credit card
- Tandem’s cashback credit card offered 0.5% cashback with no foreign transaction fees
- Premium membership credit card to charge an APR of 18.9% and a late payment fee of £12
Tandem Bank has indicated that it will not offer new customers its cashback credit card from next year. Instead, the smartphone bank has instituted a membership fee for those customers who will want to use its successor. This comes after John Lewis partnership credit card recently boosted rewards for its customers for holiday shopping
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Tandem scraps its cashback credit card
The bank launched the cashback credit card in February last year. The credit card offered 0.5% cashback to customers in the UK as well as overseas spends including no foreign transaction fees. Since its launch, last year customers have earned around £1.4 million in cashback. Equally, cardholders have managed to save up to 2.1 million in foreign exchange transaction fees.
However, the change could only affect new customers and current cardholders will continue enjoying the 0.5% cashback. Also, they will continue benefiting from the zero overseas transaction charges.
The bank has now announced that it is replacing the card with a premium membership one involving an undisclosed fee. The premium membership credit card will replace the cashback card and it will also come with several exclusive benefits. However to enjoy the benefits of the new cards customers will now have to pay for it as from 2020.
The new membership credit card offers varying benefits
Interestingly it will offer varying levels of benefits for customers including cashback as well as zero overseas spending fees. With cardholders earning cashback for overseas spend this makes the card a great option for holidaymakers. However interested customers will have to sign up and wait since it late to apply for the previous card.
Tandem has indicated that it is only the Journey credit card that is available for signup for interested customers. The credit card comes with a late payment fee of £12 and an APR of 18.9% without foreign purchase fees. The card aims at those with limited credit history and a smaller initial limit of around £1500.
Tandem taking a different approach compared to other smartphone banks
The changes will not affect those that currently hold the cashback credit with no changes instituted in current holders. At the beginning of this year, Tandem had hit around 500,000 after taking a different approach compared to other smartphone banks. Others like Starling and Monzo offer current accounts and Tandem deviated and started offering credit cards.
Ricky Knox the CEO of Tandem Bank indicated that the bank wants to align its interests with those of its clients. Therefore membership will help Tandem to act in the interests of customers as it solves their money problems. He added that they are glad to announce that they will introduce Tandem Membership beta next year.
Rebecca White is chief editor at CreditRaters.com. Rebecca has an extensive amount of knowledge on financial subjects including short-term loans & debt consolidation in the UK and USA. Rebecca has wrote for many publishers such as Debt Secret, My Money, VL and more.