Alliance & Leicester has signed up five retail partners to its
money-back credit card scheme, in a renewed attack on the pounds 48bn
credit card market.
The new deal means that from February 1, A&L customers who use their
cards to make purchases at BP, Interflora, Index and Index Extra,
Ticketmaster and ATS, will be refunded with 1% of the purchase price.
When the card is used at other retail outlets the refund will remain at
the lower rate of 0.5%.
A&L will pay back 5% of all interest payments, effectively reducing the
APR on the card from 17.9% to 16.9%.
A spokesman said 250,000 people had signed up for the credit card since
its launch in March, and A&L expected to pay out pounds 4.9m in
money-back benefit at the end of its first year.
It is now the second fastest-growing credit card in the market after
British Gas’s Goldfish brand.