Tesco CC Upgrade

A question about : Tesco CC Upgrade

I've just received a letter...
Quote:

Apparently they will credit me with 650 bonus Clubcard points each year as long as the account is open. I can opt out of the upgrade if I want.

I'm always suspicious of free upgrades so what's the downside? Anyone?

Best answers:

• Tesco will receive more interchange from a MasterCard World card than they do from Visa, so if it's a good way for Tesco to make a bit of extra income from you, particularly if you're paying off your balance in full every month .
  It doesn't sound like there's any adverse affect to you - however just double check that there aren't any additional annual fees, interest rate hikes or a reduction of the time between your statement date and payment due date. If none of those are mentioned in the offer letter, go for it!
• I'm sure someone will correct me if I'm wrong, but I believe some retailers have to pay more to accept World Mastercard.
  I doubt it's an issue for you now, but I suppose there might come a time when some retailers refuse it or insist you pay extra - especially those online retailers that already charge for different types of plastic.
  I too have a Tesco Plat Chargecard - but haven't received this "offer" yet.
• I received that letter a couple of years ago, it hasn't made any difference to me. I always pay mine off every month.
  Sorry just re-read mine was changed from a normal to a platinum.
• Mine changed from platinum to world mastercard last summer. I don't think I was given an option. My card was reaching it's expiry date and I was told that this was how my new card looked. Has changed how I use it or fees but it does have a different number so had to give new details where it was on recurring payment and to the online banking.
• Probably better stuff around, but I found this link: https://www.credit-card-comparison-on...astercard.html
• I have just received this letter, I feel maybe I will keep my visa platinum version.
  Think Visa is better accepted especially on european transactions.
  I will follow the thread for a few days before I decide though.
• I expect it is enforceable, if somebody reports the practice there's nothing to stop their bank from terminating their merchant account and they won't be able to process cards!
  From a Streamline document about the new cards:
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• I appreciate the T+Cs say that - but it doesn't mean it has legal effect.
  Just as if you buy something from a shop and the T+Cs say "no refunds" - that part of the T+Cs have no legal effect.
  T+Cs can be modified by terms implied by law. As I mentioned, when I was a merchant, I signed a contract that said I couldn't charge extra for accepting credit cards. I just ignored it (aware the legality had been challenged in court) and one of my customers complained to Barclays. Barclays threatened to remove my facility unless I dropped differential pricing. I referred them to the case and it was the end of the matter. It's subsequently been written into a statute.
  I think the situation over World Mastercard is analogous. If the charging structure to merchants is different, I don't think a term that insists that merchants accept it on the same basis would be enforceable.
• I have got this letter too. The issue for me is the 1 point per Ј2 as I get 1 point per Ј1 in Tesco and 0.75 per Ј1 everywhere else currently. That’s what makes it worse for me I believe?
• Just for completeness, this is the regulation I mentioned that prevents CC companies preventing price discrimination: https://www.legislation.gov.uk/uksi/1...article/2/made. Agreed this situation is a not so clear.
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• I agree that it seems like a bad deal for people who use the tesco card to build up points.
  Have been looking on the internet and am surprised that more people are not against getting the updated card.