Capital One seems to be resisting the trend
among US banks to drop their rewards and loyalty schemes.
The fifth largest bank by assets since
acquiring the US online banking arm of Dutch bank ING for $9bn
in June, Capital One has dropped an attractive card on the
shrinking cards rewards and loyalty market in the US with the
introduction of a 1% immediate cash-back card that will earn its
users 50% of the total card spend after a year.
EVP of US Card at Capital One, Mike Wassmer
said the launch of the new card was raising the bar for
“Reward programmes have become increasingly
complex. This new card from Capital One offers terrific value to
customers that are looking to earn more cash back in a simple way
and without the complexities and restrictions commonly found in
other cash reward cards,” he said.
The Capital One Cash card has flexible
redemption process removing spending minimums and minimum cash
The bank said there was no limit on the amount
of cash card users can earn and no expiry date for cash-back
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Swimming against the tide
The launch of the rewards card comes at a time
when many of its US rivals are dropping their rewards and loyalty
schemes or adding extra charges to cards in light of the
The rank of lenders stamping their feet after
the include TCF, which was the latest lender to announce it is
slashing its rewards scheme;
Wells Fargo, which announced at the end of August that it would
begin to charge debit card users in five US states for purchases
USAA, which dropped its rewards scheme in July.
Conversely, Citi announced that it was taking
Thank You loyalty scheme to the app store, from where customers
can now redeem their rewards.