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1 October 2007
A new credit card has been launched by Shell, which will allow consumers to earn rebates towards their fuel costs simply by using the credit card in the usual way.
The Shell MasterCard credit card has been launched in conjunction with CitiBank, and enables cardholders to spend and earn fuel rebates, which could prove invaluable to regular commuters that spend a lot of time on the road and a lot of money on fuel.
Cardholders will be able to enjoy all of the usual benefits of a credit card, as well as making savings on the cost of their petrol and diesel.
The Citi Shell MasterCard is offering an introductory sixty-day offer, where cardholders will be able to earn a rebate of six percent on the cost of petrol and diesel at Shell petrol stations. Also, the card offers a two percent rebate on other purchases.
However, the rebates must all be redeemed against fuel, which must be purchased at a Shell station, which places restrictions on the use of the rebate, unlike regular cash back credit cards. Despite this, industry officials feel that many people who are on the road a lot of the time can enjoy big savings on the cost of their fuel with this card.
The introductory period on the card is set to last for two months, and after this time the rebate on fuel from Shell stations will fall to three percent, and the rebate on other purchases will fall to one percent.
There is a standard variable interest rate of 16.9% on the card, and consumers will be able to enjoy nine months of interest free credit on balance transfers, although this will be subject to a fee of three percent of the total amount transferred. As with other rewards based cards no rebate will be earned for cash transactions and withdrawals.
Consumers that repay their balances in full each month will benefit the most from this credit card, as it means that they will not have to pay interest on their credit card spending yet they can still accrue the rebates when they spend on the card, which can then be used towards their fuel costs at a Shell petrol station.
One industry expert stated: "The new scheme should appeal to those looking to get something back from their card provider. With a more than fair conversion rate based on your spending, it should reap a healthy reward for many users. But, as with any reward card, they only make real financial sense for users who don’t carry over a balance to the next month. An incentive can soon be wiped out if you are paying over the odds in interest. Make sure the total deal works for you."
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