Halifax to offer cashback on debit cards
15 December 2004 | 4524 views | 0
The Halifax is stepping up its attack on the Big Four banks by launching the first ever current account in the UK paying cashback on debit card purchases.
The new product, called the Moneyback current account, offers 1% cashback on debit card purchases up to a total of £10,000 automatically payable tax-free once a year to the account holder. Halifax calculates that cashback potentially worth approximately £100 a year is available to the average UK household.
Debit cards now account for 65% of all card purchases and more than eight in ten adults have one. NOP World research, conducted on the Halifax's behalf, found that 71% of UK adults would find a current account offering cashback an attractive proposition.
Customers who credit their account with £1000+ a month will be eligible to apply for Moneyback. For qualifying Visa Debit transactions up to a total of £10,000 each year, customers will receive 1% cashback and 0.1% thereafter. At the end of each calendar year, the cashback earned will automatically be paid to the relevant account.
The bank believes the new service will help it achieve its target of doubling the number of current account customers who have their main banking relationship with Halifax or sister outlet Bank of Scotland.
Peter Jackson, Head of Banking at the Halifax, says: "Moneyback opens up a new front in the battle for UK current accounts. Up until now, loyal customers, who frequently pay by debit card have been ignored by the major banks."