Consumer group Which? has reported that more lenders have stopped offering credit card reward deals, with the RBS points scheme to close on 1 July. RBS is the latest bank to cut reward and cashback deals after a ruling to cap the amount banks can earn from transactions.
The RBS announcement follows a similar move by Capital One, which has withdrawn a number of its cashback and reward cards which it deemed to be ‘unsustainable’. The cap on interchange fees is due to come into force in October.
The interchange fees cap means that the charges credit card companies levy will fall from as much as 1.85% to a maximum of 0.3%, with debit card fees capped at 0.2%. Consequently the reward and cashback schemes which have historically been funded from the revenue earned through interchange fees are no longer sustainable.
The press release can be read here.