Barclaycard has announced it is ceasing the
offer of rewards through its Freedom loyalty scheme.
The programme has over a million users who are
now being given two months to spend the points accumulated in the
past two years when the scheme was launched.
Go deeper with GlobalData
Although available to “over eight million
cardholders”, Freedom was being used by just over a million
customers.
The apparent unpopularity of the programme is
attributed to limitations imposed to earning and redemption of
rewards.
The points were only granted for spending in
selected stores and could only be redeemed at an even more reduced
range of retailers.
The expenditure-rewards ratio in the Freedom scheme was also
smaller than the offered by other programmes.
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By GlobalDataBarclaycard Freedom customers were rewarded 1%, and even less, of
their spend in most of the for most of partners outlets.
In comparison, Capital One loyalty card offers
5%, going down to 1.25% after the third month. Santander’s 321 card
offers between 1.5% and 3% cash back, although it charges an annual
fee.
Replacement
Barclaycard said it is designing two new
loyalty schemes to be launched by the end of 2012.
Barclaycard said in an official announcement:
“These will provide tailored and valuable
offers from thousands of retailers and allow participating
consumers to earn freedom rewards on all spend, both at home and
abroad.”
The credit card operator did not release
further details.
Barclaycard Freedom customers have until 26
July to redeem the points accumulated. The Reward Money earnings
will stop in 21 June.
Most cardholders will have their remaining rewards automatically
credited to their account. However, those who have not used their
cards in the last six months and have less than £3 rewards balance
need to contact Barclaycard for further information on how to
redeem their points.
