Egg launches 1% cashback credit card

Egg launches 1% cashback credit card

Internet bank Egg has launched a new credit card paying 1% cashback.

The Egg Money World MasterCard has a A?1 per month fee, and charges 16.9% interest on purchases and 8.9% on balance transfers.

Items costing over A?75 are protected against theft, loss or damage for 90 days after the day of purchase.

Electrical items bought with the card receive a 12 months additional warranty, while event tickets over A?20 are covered against event cancellation.

Egg said the card was designed in consultation with customers to meet customer needs.

“Egg Money is for people who want to earn cash back from either everyday spending or expensive purchases and be protected at the same time,” said Egg CEO Bert Pijls.

“It is also for customers who want certainty in their transfer rate so they can take more control of their finances whilst continuing to be rewarded for any new purchases.”

Consumer rights group Which?, however, criticised the A?1 monthly fee on the card.

“It’s disappointing to see Egg charging its customers a fee just to hold the new card,” said Which? credit card expert Martyn Saville.

“Consumers already pay for using their credit card through the interest rate charged, so to add an extra fee on top of the APR punishes low spenders disproportionately.

“The annual fee means you’d have to spend at least A?100 a month to earn enough cashback just to cover the cost of the fee.”

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