UK: Cashback Rewards Credit Cards Going Away

"Financial experts have warned of the death of the cashback credit card, after Nationwide became the eighth major provider to pull its offering in the last year alone. The building society has closed its 'Cash Reward' credit card, which offered 0.50 per cent cashback for the first six months, dropping to 0.25 per cent thereafter. It follows in the footsteps of a string of other mainstream credit card firms - including Royal Bank of Scotland (RBS), Halifax and Egg - that have cut or scrapped their loyalty schemes in recent months.

Almost 15 million credit card holders have been hit in the past year or so, with high-profile examples including Barclaycard ditching Nectar, MINT canceling its cashback reward and RBS ceasing to offer AirMiles. Cashback credit cards, a cornerstone of the loyalty rewards market, have proved a boon for high-spending consumers and business executives, who pay off their borrowings in full at the end of each month."