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17 September 2007
The world of rewards based credit cards has become increasingly competitive over recent years, and according to recent reports one credit card provider, the Abbey, has now raised the bar when it comes to cash back deals, offering a new, tempting deal that could spark a cash back war between credit card providers.
The Abbey has revealed that it will now be offering a massive five percent cash back on purchases made at all major supermarkets in the UK up to the first one thousand pounds, giving customers the chances to earn a tidy sum in terms of cash back. Most cash back cards offer between 0.5% and 1% in cash back, so this huge 5% cash back deal could potentially attract a lot of new custom for Abbey.
The offer will be available from now until the end of January 2008 state Abbey officials. It is estimated that the average household will be able to enjoy this impressive level of cash back for five months worth of shopping based on the average household shopping spend of nearly £200 per month. Both new and existing Abbey credit card customers will be able to benefit from this cash back deal, with cash back being paid on a monthly basis.
Abbey officials state that it wants to challenge the other bigger banks in the UK by offering this new deal. One industry expert stated: "If, as it has promised it will, Abbey consistently delivers deals that appeal to the mass market then the card could well build up a reputation as a good one to opt for if you're looking for cashback." Another added: "Almost all of us will be spending £1,000 at supermarkets between now and the end of January, so an extra £50 will come in very handy. Abbey says this is the first of many credit card offers, so I look forward to seeing what it comes up with for the start of February."
In addition to offering the 5% cash back the Abbey card also offers a range of other benefits, and this includes 0% interest on purchases for three months, 0% interest on balance transfers for twelve months, and a standard APR of 15.9%.
Barclaycard have also recently begun offering a cash back reward offering on their Platinum Cashback credit card, with 2% cash back on supermarket and petrol spend, and 0.5% cash back on all other purchases.
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