Asda flier promotes expensive cash withdrawals
The ‘Asda Price’ slogan took on a whole new meaning after a flier, designed to look like a Christmas card, suggested that Asda Money customers should withdraw cash from an ATM using their credit card.
Customers withdrawing cash on their credit card are charged 3 per cent of the amount withdrawn, or £5, whichever is greater, making it a very expensive transaction.
The flier, which was sent out by Solihull-based Creation, the card issuer, failed to explain that customers would be charged for their withdrawal.
It simply said: ‘Visit your local ATM for extra cash this Christmas…why not use the cash facility on your Asda Money Credit Card. You can withdraw up to £300 a day.’
Customers who followed the advice and withdrew the maximum amount would have been charged £9.
A statement on Asda’s website on Tuesday said: ‘There have been some reports online today suggesting we are encouraging customers to pay for Christmas by withdrawing cash on credit cards – this is not the case.
‘It appears that the company which issues credit cards for us has sent a flyer out to our customers suggesting that they use their credit cards to withdraw cash.
‘Customers of other brands which use this card issuer have also received this flyer.
‘We are looking into how this happened and would like to apologise to anyone who has received one of these flyers.’
Creation entered into a partnership with Asda in July to launch the Asda Money Credit Card, which was the UK’s first supermarket cashback credit card.
It offers 1 per cent cashback on Asda shopping and petrol and 0.5 per cent cashback on all shopping outside of Asda.
Creation is part of LaSer UK which also operates as Sygma Bank UK.