Barclaycard terminates its loyalty programme Freedom

By Raphael Michilis

Barclaycard has announced it is ceasing the offer of rewards through its Freedom loyalty scheme. And customers have until 26 July to redeem the rewards accumulated in the programme.

Although available to "over eight million cardholders", Freedom was being used by just over a million customers.

The unpopularity of the programme, the third biggest in the UK at launch two years ago, is attributed to limitations imposed to earning and redemption of rewards. 

The points were only granted for spending in selected stores and could only be redeemed at an even more reduced range of retailers.

The expenditure-rewards ratio in the Freedom scheme were also smaller than the offered by other programmes.

Barclaycard Freedom customers were rewarded 1%, and even less, of their spend in most of the for most of partners outlets.

Capital One loyalty card offers 5% in the first rewards, going to 1.25% after the third month. Santander 321 card gives from 1.5% to 3% reward, although it charges an annual fee.

Barclaycard said it is designing two new loyalty schemes to be launched by the end of 2012.

"These will provide tailored and valuable offers from thousands of retailers and allow participating consumers to earn freedom rewards on all spend, both at home and abroad," a spokesman said.

The credit card operator did not release further details.

Redemption

Earnings in the Freedom programme will cease on 21 June. 

Most cardholders will have their remaining rewards automatically credited to their account. However, those who have not used their cards in the last six months and have less than £3 rewards balance need to contact Barclaycard to redeem their points.