As of today (1 February 2017) all customers with Santander’s 123 credit card will see cashback earned capped.

The changes affect all existing holders of the 123 credit card, which is no longer available to new customers. Previously, the only cap that Santander imposed was £9 cashback on fuel and rail (including Transport for London) spends. The new cap means that there is a maximum of £3 a month cashback awarded in each of the categories below:

  • 1% cashback at all major supermarkets (on spend of up to £300 per month)
  • 2% cashback at all major department stores (on spend of up to £150 per month)
  • 3% cashback at all major petrol stations and on National Rail and Transport for London (TfL) travel (on combined spend of up to £100 per month)

The £3 monthly fee remains unchanged. Holders of the 123 credit card would be wise to check their credit card statements over the coming months to identify whether the cashback earned outweighs the monthly cost of the card and if the card still works hard enough for them.

There are a number of other credit cards that offer cashback, some which don’t even charge a fee, such as Asda’s own cashback credit card (though Asda also offers a “cashback plus” credit card, giving more cashback in exchange for a £3 monthly fee).

Before applying for a credit card, we recommend using MoneySavingExpert’s eligibility calculator, which reduces (but does not completely eliminate) the risk of being rejected and having a mark left on your credit file.

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