Since the law changed in January to ban credit card acceptance fees, there has been a interesting miles earning niche available.
Some of the pre-loaded travel money cards, such as Revolut (we reviewed Revolut here, our special offer saves you the £5 fee), have been treated by some credit card companies as a purchase. This means that you earn miles or points when you load up your Revolut, Monzo etc debit card. There is no list of which credit cards treat Revolut etc as a cash advance and which treat it as a purchase – you need to try out the various cards you own.
Tesco Bank has now decided to take action.
From 1st June, Tesco credit cards will increase their cash advance fee from 3.0% to 3.99%. More importantly, it will now treat payments to prepaid or virtual cards, such as Revolut, as a cash advance.
For clarity, this does not impact Curve. If you have linked Curve to your Tesco credit card you may have received this letter. This is because, for two days earlier this year, Curve transactions were incorrectly coded by Mastercard. If you used Curve during those two days then Tesco thinks – incorrectly – you were loading a prepaid card.
Tesco also has other targets in its sight. Wire or international money transfers, repayments of loans or mortgages, purchases of foreign currency except in Tesco stores, investments, share trading and spread betting payments will be treated as cash advances. (I seriously doubt that any mortgage lender was actually accepting a Tesco credit card as payment, but who knows?!)
I get a feeling that, by the end of the year, it will no longer be possible to use any UK credit for a fee-free top-up of a prepaid debit card.
Want to earn more points from credit cards? – January 2022 update
If you are looking to apply for a new credit or charge card, here are our January 2022 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 top current deals.
There are special sign-up bonuses on both of the BA American Express cards until 28th February 2022. The bonus on the free card is doubled to 10,000 Avios and the bonus on the Premium Plus card is increased from 25,000 Avios to a huge 40,000 Avios.
British Airways American Express
10,000 Avios for signing up (SPECIAL OFFER) and an Economy 2-4-1 voucher for spending ….. Read our full review
British Airways American Express Premium Plus
40,000 Avios (SPECIAL OFFER) and the UK’s most valuable card perk – the 2-4-1 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
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.
The bonus on the Capital On Tap card is increased from points worth 10,000 Avios to 30,000 Avios until 4th February 2022.
The bonus on the British Airways Accelerating Business card is increased from 30,000 Avios to 45,000 Avios until 28th February 2022.
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
45,000 Avios sign-up bonus – plus annual bonuses of up to 30,000 Avios Read our full review
Capital On Tap Business Rewards Visa
30,000 points bonus – the most generous Avios Visa for a limited company Read our full review
For a non-American Express option, we also recommend the Barclaycard Select Cashback card for sole traders and small businesses. It is FREE and you receive 1% cashback on your spending.
Apply 31st March 2022 and your cashback will be increased to 2% for the first three months.