M&S to make a major change to credit card rewards – is it still worth having one?
MARKS and Spencer is making a huge change to its Club Rewards scheme for credit card holders.
The retailer is axing several lucrative benefits offered through the membership scheme next month, The Sun can reveal.
The M&S Club Rewards scheme is a premium membership option for credit card holders with additional perks for a £10 monthly fee.
Members of the scheme earn extra reward points on their credit card purchases and free M&S vouchers for clothing, home, food and drink.
Club Rewards members also enjoy free next-day delivery, worth £5.99, on every order.
However, M&S will be discontinuing this perk from November 13.
The shake-up will also see customers lose out on earning extra reward points when using their credit cards abroad.
Instead, customers will be issued more M&S vouchers as a replacement.
In an email sent to members today, M&S said: “We’re always listening to our customers and looking for ways to give you more of the things you love at M&S.
“So, from November 13, we’re making a few changes to the benefits you get throughout the year to give you more of what our customers value most.”
“Customers have told us they want more vouchers, so we’re increasing your M&S vouchers from £65 to £120 per year.
“You’ll still earn an extra two rewards points for every £1 spent at M&S on top of any Rewards points you earn on your M&S credit card. You’ll also get 32 hot drink vouchers and a treat for your birthday.”
M&S CLUB REWARDS
ALL M&S credit card holders can sign up for the retailer's Club Reward scheme.
It costs £10 a month and currently offers the following benefits:
- Extra reward points: Customers receive two extra rewards points per £1 spent in M&S when using their card online and in-store on top of the rewards points you earn already
- Free next day deliver: Shoppers get free next day delivery at no extra cost on full-price clothing, home and beauty purchases at M&S.com. This means you’ll save £5.99 per order.
- Hot drinks vouchers: Members get 32 hot drink vouchers a year to spend on any sized hot drink M&S cafes. This leads to savings worth up to £88 a year.
- M&S vouchers: Shoppers get £65 worth of free M&S vouchers each year. They get three £15 vouchers and one £20 voucher to spend in clothing or home departments, in-store or online.
- Birthday treat: On your birthday, customers get a free £12 M&S food voucher.
- Extra points abroad: Shoppers spending abroad can get three reward points for every £1 spent on purchases made in the local currency.
Currently, customers receive three £15 vouchers and one £20 voucher, totalling £65, to spend in the clothing or home departments, either in-store or online.
However, starting November 13, Club Rewards members will receive £120 worth of M&S vouchers annually.
This includes four £25 vouchers for clothing, home, and beauty, plus two £10 vouchers for use at M&S food halls.
M&S is also ditching the fixed £12 food hall vouchers offered to members on their birthday.
Instead, these shoppers will receive an unspecified gift, which could be a voucher or reward points boost.
An M&S Club Rewards spokesperson told The Sun: “We’re in the process of contacting our existing M&S Club Rewards customers, to give them advance notice that some of their benefits will be changing.”
Is membership still worth it?
Sarah Coles, head of personal finance at Hargreaves Lansdown, suggests that now is the perfect time to reassess whether these changes will still work for you.
She said: “M&S has ditched free next day delivery for its club rewards customers.
“For online shoppers this will have been a big part of the attraction, because it saved £5.99 on each next day delivery – going a long way to justifying the £10 a month charge.
“You’ll also lose the extra points on spending overseas, although the difference that makes to you will depend on how often you travel and how much you spend.”
The membership fee may still be worthwhile for those who primarily shop at M&S, as members will now receive £120 in M&S vouchers each year.
However, Sarah added: “You need to be certain you’ll spend these vouchers and that you would have spent this money in M&S anyway.
“You’re effectively swapping £120 to spend anywhere for £120 to spend in specific ways at M&S.
“If you don’t get any other value from the club, you might decide this isn’t a decent trade.”
While shoppers will continue to earn additional reward points for spending on their credit card, it’s vital to consider whether this is the right choice for you.
Sarah said: “It’s only worth it if you have the discipline to take advantage of the benefits and repay on time and in full every month.
“For many people, the potential benefit won’t be worth the risk.”
M&S REWARDS POINTS
M&S Credit cardholders earn reward points with every purchase.
Points can then be converted into M&S rewards vouchers which can be spent in stores and online.
Cardholders earn one point for every £1 spent at M&S and for every £5 spent elsewhere, with 100 reward points equating to £1.
When you reach 200 reward points you will receive a rewards voucher, which are sent out every quarter.
Digital Rewards vouchers are usually available in your Sparks account in the M&S app or at marksandspencer.com in March, June, September and December.
Paper rewards vouchers are usually sent in February, May, August and November.
Paper rewards vouchers are valid for 15 months.
Digital rewards vouchers in your Sparks account are valid for 17 months.
What are the alternatives?
If you don’t primarily shop at M&S but still wish to earn everyday rewards on your spending, there are plenty of credit and debit card options available.
Many of these specialist reward cards are also fee-free.
Chase’s fee-free current account offers a debit card, which allows for 1% cashback on most spending, and shoppers can earn a maximum of £15 each month.
American Express (Amex) offers two cashback credit cards.
The fee-free Amex Cashback Everyday Credit Card pays newbies 5% cashback on all spending up to £125 during the first five months of card membership.
After this period customers will continue to earn 0.5% on all spending up to £10,000 and then 1% on all spend above this.
However, to take advantage of any of these cashback offers, you’ll need to spend at least £3,000 on the card each year.
The Amex Cashback credit card, which costs £25 a year, offers similar perks but without the minimum annual spend.
Customers are rewarded with 5% back on purchases within the first three months, then 0.75% on the first £10,000 spent and 1.25% on all spending above this.
Existing Santander customers can get ongoing 2% cashback on their spending with the Santander Edge credit card.
This comes with a £3 a month fee but gives customers 2% back on most purchases in the first 12 months and then 1% cashback thereafter up to a maximum of £15 a month.
CREDIT CARD NEED-TO-KNOWS
NOT using a credit card effectively can wreak havoc on your finances and your credit score.
If you don’t keep up with repayments or default on your debt, you are likely to get a black mark on your credit record, which could affect your ability to get a credit card, loan or mortgage in the future.
It’s important not to let yourself get sucked into overspending.
You should always clear the full balance as soon as possible.
If you have a poor credit score, don’t bank on being approved for a card or getting the 0% deal you’d hoped for.
Card providers only have to give the advertised rate to 51% of applicants, so you could end up paying more interest than you bargained for.
After your 0% period is up, lenders can charge upwards of 40% interest, so if you have not repaid the debt fully by then, try to move the debt onto another 0% deal.
If you’ve got a poor credit record, you’re less likely to get the best rates.
And if you are looking for a new credit card, don’t apply for lots at once.