Tesco Bank has announced the national rollout of its new Clubcard Pay+ bank account, enabling customers to earn Clubcard points as well as manage their budget and round up their savings. It has been available on a limited basis since March 2021 but is now being rolled out to all Tesco Clubcard members across the country.
What is Clubcard Pay+?
Clubcard Pay+ is a combination of a Clubcard Pay+ payment account, a Clubcard Pay+ prepaid debit card, and a round-up savings feature. It is designed to make grocery shopping easier - helping you make purchases, manage your budget, and see all of your spending in one place.
You can connect your Clubcard Pay+ payment account to your Tesco Clubcard to view your Clubcard points and rewards. It also comes with a prepaid Clubcard Pay+ debit card to make purchases at Tesco and other retailers, and a linked Round Up savings account, which lets customers round up their change to the nearest £1 and add it to a separate savings account.
Clubcard Pay+ payment account
A Clubcard Pay+ payment account is a bank account provided by Tesco Bank which can be managed from the Tesco Bank Mobile Banking app. You can deposit funds into your Clubcard Pay+ account and use it to make purchases at Tesco and other retailers.
However, a Clubcard Pay+ payment account cannot function as your primary bank account and does not support the following features:
- Direct debits
- Standing orders
- International transfers in or out of account
- Sending of CHAPS payments
- Use of cheques or bankers drafts
A Clubcard Pay+ payment account can be linked to your existing Clubcard account number to view your Clubcard points and rewards. Or, if you are not already a member, you will be automatically enrolled when you open a Clubcard Pay+ account.
There are several types of transaction which you will not be able to earn Clubcard points on, however, including:
- Refunds
- Debit card transactions of £100,000 or more
- Paying for gambling
- Purchasing foreign currency
- Purchasing shares
Clubcard Pay+ prepaid debit card
A Clubcard Pay+ account comes with a prepaid debit card which you can use to make purchases and collect Clubcard points anywhere Visa debit cards are accepted. Your Clubcard Pay+ card functions as your Clubcard, so you can collect the usual 1 Clubcard point for every £1 you spend in Tesco and on Tesco fuel (in-store and online), but you can also use it at other retailers to collect 1 Clubcard point for every £8 spent outside Tesco.
You can also use your card with Scan as you Shop by entering your Clubcard number on your Clubcard Pay+ debit card at the start of your Scan as you Shop journey. You can then pay with your Clubcard Pay+ card at the till as usual.
There is also an introductory offer which boosts the amount of Clubcard points you can earn when you first get your Clubcard Pay+ account. For the first 100 days, you can collect 2 Clubcard points for every £1 you spend on qualifying products in Tesco and on Tesco Fuel (excludes Esso). This amounts to 1 extra Clubcard point for every £1 you spend. The offer is temporary and will return to the standard points rate after the first 100 days are up.
You will also incur a 2.75% foreign exchange fee for all transactions made on a Clubcard Pay+ debit card outside of the UK, while ATM withdrawals made outside of the UK in foreign currencies (excluding Euros) will be charged an additional 1% cash withdrawal fee.
You will have to periodically top up your Clubcard Pay+ card. There is no overdraft available but your balance may fall below £0 if a retailer accepts the payment when there is not enough money in your account. In this case, you will immediately be sent a text to your mobile phone reminding you to top up your Clubcard Pay+ card. If you fail to do so, Tesco reserves the right to suspend your account.
Anyone who is unable to restore the balance on their Clubcard Pay+ card above £0 should contact Tesco’s Clubcard Pay+ Customer Services team.
Round Up savings account
A Clubcard Pay+ account also has a Round Up feature, which rounds up each transaction on your Clubcard Pay+ card to the nearest £1 and deposits the difference into a separate Round Up savings account paying a variable rate of 0.25% AER. Interest is paid annually and at the point of closure.
Your Round Up balance can be transferred out of your Round Up savings account into your main Clubcard Pay+ payment account or any other UK bank account under the same name. You can then manage both accounts through the Tesco Bank Mobile Banking app.
Although there is a transfer limit of £100,000, you can make an unlimited number of withdrawals from your Round Up savings account to your Clubcard Pay+ account or to any linked UK bank account. Bear in mind that moving your money to an external account will require telephoning Tesco Bank for permission to transfer.
Are you eligible for Clubcard Pay+?
Tesco Clubcard Pay+ is provided by Tesco Bank and is available to all Tesco Clubcard members who meet the following criteria:
- Are resident in the UK
- Aged 18 or over
Accounts are subject to status. If you have been declined for Clubcard Pay+ and you are unsure why, you should contact Tesco’s Clubcard Pay+ Customer Services team to discuss the matter further.
Is Clubcard Pay+ safe?
The money in a Clubcard Pay+ payment account is held by Tesco Bank, which is protected by the Financial Services Compensation Scheme (FSCS) up to a total of £85,000, but this applies to all funds held in Tesco Bank under your name. This means that if you hold any other bank accounts with Tesco Bank - such as an ISA - you will only be protected for up to £85,000 and anything over this amount will not be guaranteed if Tesco Bank were to go bust.
Will applying for Clubcard Pay+ affect your credit score?
Applying for Clubcard Pay+ will not affect your credit score even if your application is unsuccessful. Tesco Bank will however carry out a soft search which may appear on your credit file, but this will only be visible to you and will not impact what other institutions can see on your file.
How to apply for Clubcard Pay+
You will need to be both registered and signed in to an existing Tesco account to be able to apply for Clubcard Pay+. The application process is entirely online and should only take you a few minutes to find out if you have been successful.
