An EU ruling last month has reduced the amount that credit card companies in the UK can charge retailers for payments made on credit cards. The change will occur from October 2015.
Yesterday, CapitalOne, who offers a 5% cash back card, announced that they were closing it to new applicants and writing to existing holders of their card telling them that from June their cash back will be much lower.
Apparently this is the EU’s version of ‘consumer friendly’ changes.
It appears that not only cash-back cards will be hit, but there may well be changes to card issuing points or miles. Watch this space.