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Review: the Tesco Bank Mastercard credit card

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This is our review of the Tesco Bank Mastercard credit card.

It is part of our series of articles looking at the major UK loyalty credit cards and discussing whether of not they are worth applying for. These posts are linked to the relevant sections of the ‘Credit Cards‘ area of the menu bar. Our other UK airline and hotel credit card reviews can be found here.

Key link: Tesco Bank Mastercard application form

Key facts: No annual fee

Review Tesco mastercard clubcard credit card

The representative APR is 24.9% variable.

Reward credit cards generally have high interest rates and are not suitable for anyone who does not pay off their full balance each month. If you do not clear your balance, you should look for a non-rewards credit card with a low interest rate.

This article was updated on 1st June 2024, and all of the information is correct as of that date. Ignore the original publication date shown.

About the Tesco credit card

The Tesco Bank Mastercard is issued by Tesco Bank, which is now wholly owned by Tesco following its acquisition of Royal Bank of Scotland’s stake a few years ago.

What is the Tesco credit card sign-up bonus?

There is no sign-up bonus on the card.

Any other benefits?

The core version of the Tesco Bank Mastercard offers 0% interest on balance transfers for 22 months, albeit with a 2.75% fee.

What do I earn per £1 spent on the card?

You earn 1 Clubcard point for every £8 spent on the card on a ‘per transaction’ basis.

It is important that you understand what ‘per transaction’ means. At the most extreme, if you bought 100 items at £7.99 in separate transactions, you would earn zero Clubcard points. A £15.99 transaction would only earn one point, whilst a £16.00 transaction would earn two points.

You earn 1 point per £4 spent in Tesco.

Review Tesco mastercard clubcard credit card

How does that convert to Avios or Virgin Points?

You will NOT be converting your Tesco Clubcard points to Avios. The partnership with Avios ended in January 2021.

Luckily, if you want to earn Avios points from a Visa or Mastercard, you still can. In February 2022, Barclaycard launched two excellent Avios credit cards with big sign-up bonuses:

Barclaycard Avios Plus card

Barclaycard Avios Plus Mastercard

Get 25,000 Avios for signing up and an upgrade voucher at £10,000 Read our full review

Barclaycard Avios card

Barclaycard Avios Mastercard

5,000 Avios for signing up and an upgrade voucher at £20,000 Read our full review

You can still convert your Clubcard points to Virgin Points although this isn’t the best way to earn them.

1 Clubcard point is worth 2 Virgin Points so every £1 spent on the card gets you up to 0.25 Virgin Points.  This rate is doubled for spending at Tesco. Your actual earning rate will be lower due to the way transactions are rounded down to the nearest £8.

You will receive a statement once a quarter containing your Clubcard vouchers, and you can convert these online to Virgin Points or redeem them for any of Tesco’s other Clubcard partner deals. You can even spend the vouchers in-store at Tesco at their face value, although this is a poor use of them.

If your goal is Virgin Points, do NOT get the Tesco Clubcard credit card. Get the free Virgin Atlantic Reward Mastercard instead which earns 0.75 Virgin Points per £1. This is triple the number of Virgin Points per £1 spent.

Virgin Atlantic Reward Mastercard

3,000 bonus points, no fee and 1 point for every £1 you spend Read our full review

Any other quirks?

Your Tesco credit card doubles up as a standard Tesco Clubcard.

It is perfectly acceptable to hand over your Tesco credit card in a Tesco store and ask them to swipe it as a Clubcard. You can then pay for your shopping on a more lucrative credit card!

What is a Virgin Point worth?

We value Virgin Points in line with Avios, at 1p each. Where British Airways and Virgin Atlantic compete, mileage costs and taxes are close enough to justify this.

Virgin Points are relatively worthless in small quantities, however, if your aim is free flights due to Virgin Atlantic’s lack of short haul options. Whilst you can redeem for many non-flight items via the Virgin Red app, the value you get is low at around 0.5p per point.

One key benefit of Tesco Clubcard points is that you do not have to convert to Virgin Points, of course. Unlike the dedicated Virgin Atlantic credit cards, you have the option to convert to Virgin Points, but there is also the flexibility to use them for any other good Tesco deals that come along.

I used to use a large pile of vouchers to pay a regular Safestore bill and then moved on to using them for Uber.  When those deals died I moved back to Avios – and have now moved across to Virgin Points – but it was good to have the choice.

Tesco Mastercard review

Is this a good card to use when travelling?

No. As Tesco Bank adds a 3% foreign exchange fee, you might want to get a separate free credit card to use abroad.

Unfortunately there are no credit cards with 0% foreign exchange fees worldwide which earn airline or hotel points. (The Virgin Atlantic credit cards have 0% FX fees in the Eurozone.) Currensea is a simple but clever idea. You pay abroad with your Currensea Mastercard debit card. Currensea translates the cost to Sterling with just a 0.5% fee (83% less than the Tesco card) and withdraws the money from your bank account. You can find out more by clicking here. Currensea is free so there is no risk in giving it a try.


With no sign-up bonus, there is no reason to get the Tesco Bank Mastercard for a quick points boost.

Assuming you convert your Clubcard vouchers to Virgin Points, the earning rate of 0.25 Virgin Points per £1 is not attractive.

You could be earning 0.75 Virgin Points per £1 with the free Virgin Atlantic Reward Mastercard.  Our review of the free Virgin Atlantic credit card is here.

Virgin Atlantic Reward Mastercard

3,000 bonus points, no fee and 1 point for every £1 you spend Read our full review

Whilst there is some value in the greater flexibility offered by the Tesco Clubcard Mastercard, due to its wider range of redemption options, this is not enough to justify accepting 0.25 Virgin Points per £1 when you could be getting 0.75 per £1 on Virgin’s own card.

Even the occasional conversion bonuses of 10%-20% to Virgin Points from Tesco Clubcard not go anywhere near justifying the gap.

The application form for the Tesco Bank Mastercard can be found here.

(Want to earn more miles and points from credit cards?  Click here to visit our dedicated airline and hotel travel credit cards page or use the ‘Credit Cards’ link in the menu bar at the top of the page.)

Disclaimer: Head for Points is a journalistic website. Nothing here should be construed as financial advice, and it is your own responsibility to ensure that any product is right for your circumstances. Recommendations are based primarily on the ability to earn miles and points. The site discusses products offered by lenders but is not a lender itself. Robert Burgess, trading as Head for Points, is regulated and authorised by the Financial Conduct Authority to act as an independent credit broker.

Comments (6)

This article is closed to new comments. Feel free to ask your question in the HfP forums.

  • Retron says:

    It also doubles your earning rate if you use it as your Clubcard at a “pay at pump” Tesco petrol station, earning you 1 point per pound.

    The idea is you then use a better card to actually pay for the fuel.

    • Jonathan says:

      I think they’re changing the earnings rate when you buy their fuel.

      But who’d want to put Tesco fuel in their car anyway ? I use BP and get Avios !

      • Tiger of ham says:

        You know it’s all the same fuel right. Tesco just buy it off the market.

      • Harrier25 says:

        I have no problem putting Tesco fuel in my car, but I do have a massive problem with this awful credit card!

  • Rob says:

    Going to be 1 point per litre.

  • ADS says:

    “the earning rate of 0.25 Virgin Points per £1 is not attractive”

    And as you point out earlier, with the £8 rounding per TRANSACTION, the 0.25 earning rate is more likely 0.1 in real life – which is positively vomit inducing !

This article is closed to new comments. Feel free to ask your question in the HfP forums.

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