A couple of years ago, Tesco upgraded some of its credit card holders to the Tesco World Mastercard. World Mastercard is a premium product which comes with some elite benefits along the lines of those offered by American Express – see the website.
Tesco even bribed people to accept the upgrade. They received some bonus Clubcard points, and the promise of a further 650 Clubcard points for every year they kept the card. If you upgraded your card, you should have received your 650 points for 2013 in the last week or so.
And yet, if you look at the Tesco website today, the Tesco World Mastercard is nowhere to be seen.
The story behind this decision is outlined at Retail Insider. And a fascinating story it is, which shows another example of how Tesco has been operating like a headless chicken in recent years.
World Mastercards have higher fees to retailers than standard Mastercard products. This is presumably because retailers are told they are held by ‘premium’ customers who will spend more.
But where were Tesco World Mastercard holders doing a large percentage of their shopping? Well, erm, in Tesco. No big surprise there.
Tesco’s UK retail business started to take a big financial hit because of the extra card fees taken by Mastercard on the World product. Some of this increased fee went back into Tesco Bank as commission, but some did not. And in any event, it made the financial performance of the UK retail business look poorer than it was.
With other parts of the Tesco empire struggling, the company was desperate that the UK arm continued to show good performance.
The Tesco World Mastercard was therefore withdrawn to new cardholders. It is ironic, though, that Tesco is still paying existing cardholders 650 Clubcard points every year for keeping it.
Want to earn more points from credit cards? – June 2021 update
If you are looking to apply for a new credit or charge card, here are our June 2021 recommendations based on the current sign-up bonus.
You can see our full directory of all UK cards which earn airline or hotel points here. Here are the other top current deals:
British Airways American Express
5,000 Avios for signing up, no annual fee and a companion voucher for spending £20,000 Read our full review
British Airways American Express Premium Plus
25,000 Avios and the UK’s most valuable credit card perk – the 2-4-1 companion voucher Read our full review
American Express Preferred Rewards Gold
Your best beginner’s card – 20,000 points, FREE for a year & two airport lounge passes Read our full review
The Platinum Card from American Express
30,000 points and an unbeatable set of travel benefits – for a fee Read our full review
Virgin Atlantic Reward+ Mastercard
15,000 points bonus and the most generous non-Amex for day to day spending Read our full review
Earning miles and points from small business cards
If you are a sole trader or run a small company, you may also want to check out these offers.
American Express Business Gold
20,000 points sign-up bonus and free for a year Read our full review
American Express Business Platinum
40,000 points sign-up bonus and a long list of travel benefits Read our full review
British Airways Accelerating Business American Express
Earn both Avios and BA On Business points with your business spending Read our full review
Capital On Tap Business Rewards Visa
The most generous Avios Visa or Mastercard for a limited company Read our full review