Barclaycard axes Freedom loyalty scheme
The Freedom scheme from Barclaycard is on its way out, leaving customers just two months to spend their Reward Money.
Credit card giant Barclaycard has announced it is scrapping its ‘Freedom’ loyalty scheme.
Customers will no longer be able to earn any Reward Money after the 21st of June 2012 and those with outstanding money points will have until July 26th to spend them.
So what went wrong?
How the scheme worked
The Freedom scheme was available across most of the firm’s credit cards and rewarded shoppers with 1% cashback .
The ‘Reward Money’ was credited immediately, allowing shoppers to save up enough to eventually pay for all or part their purchase on another visit to any of the selected shops.
Where it went wrong
Criticism came when people realised the restrictions on the card meant shoppers could not spend or redeem points as freely as the scheme’s name implied.
Unlike other cashback reward credit cards that allow you to earn wherever you spend, the Barclaycard version was limited to participating retailers, which on launch two years ago included LA Fitness, YO! Sushi, Firebox.com, Goldsmiths and Nationwide Autocentres.
To date the scheme has improved and there are now, according to Barclaycard, 20,000 high street and local retailers involved including Pizza Express, Spaghetti House and Mr Clutch.
What happens next?
The scheme, which was available to around 12 million customers, is being withdrawn so Barclaycard can focus on launching new products later this year.
Any unused rewards after the cut-off in July will be paid back to customers automatically, providing they have used their card in the last six months and have a balance of £3 or more.
Customer who have not used their card in the last six months, or have a balance of less than £3, will have to contact Barclaycard directly for a refund.
All refunds should be dealt with by September.
So did you use the scheme? Will it be missed? Let us know your thoughts.
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Comments
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I have been a member of this scheme since it started. Barclaycard have written to me to tell me the scheme is being scrapped and that (to date) I have earned 7 pence! I will not let this windfall change my life.
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Another example of the t***s that work for retail banks dreaming up a product that no-one really wants. Just a card with a simple % off everything please - I have 2 (Amex and capital One) and the only thing I ever use Barclaycard for (despite being a current account customer) is as an Oyster card.
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I ended up with this card, as I did have a Leeds BS card (with normal cashback) that was taken over by Barclaycard. I found the "Reward Money" scheme totally pointless. I have no idea which shops did or did not result in getting rewards, and life is too short for me to waste my time finding out. No doubt the intention was that it would encourage me to shop at the shops that did offer rewards over ones that don't, but I'm going to shop where I want to shop based on price, quality and service, 1% (or even the odd "special event" 3%) cashback will have no affect on that decision. I put most of my normal shopping on my American Express card - that gives more cashback, and pays it wherever I shop, not just specific shops. OK, some places don't take AmEx, but the sort of places that don't are almost certainly not on Barclaycard's rewards program either. I only keep the card at the moment because I have a balance transfer on it that needs clearing; once that's paid off, the card will go.
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25 May 2012