The Lemon Fool

I recently got an email from Barclaycard saying they're introducing a cashback limit to my credit card.

We’re updating your Cashback rewards terms and conditions so there’s an upper limit on the total monthly value of the rewards you can receive. But don’t worry, this limit is four times your credit limit in rewards in any statement period.

This means that if you have a credit limit of £1,000 you won’t earn rewards on more than £4,000 of spend in your statement period, not including any promotional reward offers.

So my credit limit is £7,500, and my statement period is a month.

I won't be affected by the limit unless I spend £30,000 in a month, which would be pretty difficult as I'd need to pay off my balance at least 4 times in the month to enable further spending.

I wonder why they're bothering with this, and what they're trying to prevent?

Scott.

swill453 wrote:I won't be affected by the limit unless I spend £30,000 in a month, which would be pretty difficult as I'd need to pay off my balance at least 4 times in the month to enable further spending.

I wonder if people are doing that a lot i.e. paying off the balance multiple times a month to effectively increase the credit limit.

I confess to doing that myself on a rewards or cashback card. And especially since you can fund paypal transfers on a credit card for no fee or penalty, and get a 6/7 week float, as well as the cashback.