Cashback deals on credit cards 'are getting more complex'
Published On 8 November 2007
In recent years it has become harder for consumers to compare the cashback deals on credit cards, a new report has revealed.Defaqto produced a study which found that the number of companies offering cashback deals on credit cards has dwindled in recent years.
However, it added that the complexity of the deals has increased, making it harder for comparisons to be made.
The study found that deals such as enhanced rates, tiered earning rates, maximum qualifying spends and enhanced earnings at specific retailers make it particularly difficult for consumers to work out which is the best credit card deal for them.
David Black, a consultant at Defaqto, explained: "Despite their complexities, cash back credit cards offer a genuine return for card holders but are only appropriate for those people who always pay off their entire balance every month.
"This is another example in the credit card industry where consumers can take advantage of the offers by having more than one card and using each selectively to maximise cash back earnings."
Recently, Abbey reported that cashback was the most popular credit card feature for consumers.
