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John Lewis Partnership credit card: What HSBC to NewDay switch means for customers

·3-min read
The John Lewis reward credit card was first launched in 2004, and allows customers to earn points when they shop. Photo: Leon Neal/Getty
The John Lewis reward credit card was first launched in 2004, and allows customers to earn points when they shop. Photo: Leon Neal/Getty

John Lewis is set to relaunch its partnership credit card this summer in collaboration with consumer credit provider NewDay.

From 9 May, the department store stopped accepting applications for its partnership card with its current credit provider HSBC UK (HSBA.L).

The relaunch is part of John Lewis' wider plans to provide a broader range of financial products and services to customers. Here's what the change means for customers.

John Lewis partnership credit card. Photo: John Lewis
John Lewis partnership credit card. Photo: John Lewis

What is changing with the partnership card?

The reward credit card, which was first launched in 2004, allows shoppers to earn five points for every £4 spent at Waitrose and John Lewis, or one point for every £4 spent elsewhere.

Points earned by shoppers can be exchanged for vouchers. Users receive a £5 John Lewis or Waitrose voucher for every 500 points they earn

According to John Lewis, £230m has been issued to customers in vouchers over the last five years.

The card has no annual fee and also offers interest-free spending for nine months plus 18 months 0% on balance transfers (with a 2.9% balance transfer fee).

Based on an assumed credit limit of £1,200 and a purchase rate of 18.9% (variable) the card would cost a representative 18.9% APR variable. Credit is subject to status and terms apply.

From this summer, the card will be relaunched with credit card provider NewDay.

The retailer has not yet given an exact date for when card applications will reopen for both existing and new customers.

However a spokesperson for John Lewis told Yahoo Finance UK that they will be "inviting customers to apply for the new card soon", but provided no further details on whether there will be any changes in the number of points people will earn, APR and interest-free spending period.

Watch: The risks of buying now and paying later

What does this mean for existing customers?

In an email sent to an existing customer, seen by Yahoo Finance UK, John Lewis said the card will become inactive from 6PM on 31 October.

The email adds that users can continue to use their cards as normal up until that time, after which it will stop working, and customers will no longer be able to make purchases or use the card at ATMs.

"You’ll continue to earn points on spend, including at John Lewis & Waitrose, until your current card stops working from 6PM on 31 October 2022," the email stated. "You’ll receive any vouchers you are due by the end of October 2022 as normal. Any additional vouchers that you earn during October 2022, will be issued in November 2022."

Customer accounts that have a zero balance on or after 1 November will be "automatically closed", John Lewis said. Users do not need to take any action themselves.

Those who wish to close their account before this date, are asked to call John Lewis 0345 300 3833.

Credit card users with an outstanding balance on their account on after 1 November should "continue to pay as usual" until the amount is paid in full. The retailer said the account will be closed automatically when the balance is repaid in full.

It added: "If you pay by direct debit or standing order, please keep these active to ensure your payments are maintained.

"You will continue to receive monthly statements until the balance is paid in full. For this reason, it is important that you let us know if your contact details change."

The change also affects any additional cardholders on customers' accounts. "You will need to let anyone else who has a card linked to yours know that their card will stop working."

Watch: How to save money on a low income