Understanding interest rates and fees for our Credit Cards
Understanding the fees and interest on your credit card can help you avoid unexpected costs. We’ve outlined our key charges so you’ll know exactly what to expect.
Our fees
We charge fees on some transactions - here’s a quick look at the standard fees for our Credit Cards. If you already have one of our Credit Cards, you can also check your monthly statement or credit agreement for your individual interest rates and any introductory fees.
Default fees
These are charges you pay if you break the rules of your credit card agreement with us, like missing a payment.
You will not be charged a fee if you go over your credit limit.
Clubcard Credit Cards and Premium Credit Cards
You'll be charged £12.00 if you don't make your minimum payment on time. You'll pay interest on this 28 days from when we tell you that the fee has been charged. Interest will be charged at the rate we charge for purchases, and you will not pay interest on this interest.
Clubcard Plus Credit Card
If you applied for your Clubcard Plus Credit Card before 21 July 2020 you will not be charged a late payment fee.
Other card fees
If you make a balance transfer to an existing Tesco Bank Credit Card, you’ll be charged a handling fee of 3.99%. The fee will be charged on the day we receive the money. You’ll pay interest on the fee at the same rate that applies to the balance transfer.
If you make a money transfer from an existing Tesco Bank Credit Card, you’ll be charged a handling fee of 3.99%. The fee will be charged on the day the money is sent. You’ll pay interest on the fee at the same interest rate that applies to the money transfer.
If you withdraw cash from an ATM, over the counter, at a bank or from a cash provider, you’ll be charged a handling fee of 3.99% with a minimum of £3.00. You’ll also pay interest on this fee from the day you withdraw the cash at the same rate that applies to the cash withdrawal.
You'll be charged a 3.99% fee on cash transactions. Visit our Credit Card FAQs for details of the types of transactions we class as cash and some examples. You’ll pay interest on this fee from the date you make the transaction at the same rate that applies to the cash transaction.
Clubcard Credit Cards and Premium Credit Cards
You’ll be charged a 2.75% fee on any transactions you make in a foreign currency. You’ll pay interest on this fee at the same rate that applies to the transaction you made.
Clubcard Plus Credit Card
No fee.
Clubcard Credit Card
No fee.
Premium Credit Card
You'll be charged a £36.00 annual fee on the statement after you make your first transaction. It will then be charged every year on the month you first opened your account. You'll pay interest on this fee at the rate we charge for purchases.
Clubcard Plus Credit Card
You pay £7.99 a month for your Clubcard Plus subscription.
Understanding interest
If you pay off your statement balance (excluding any balances on a 0% rate) in full each month, you will not be charged interest on your purchases. However, we'll charge interest at the applicable rate on your other balances, excluding those on a 0% rate. If you can’t pay your balance in full, make sure you pay at least your minimum payment to avoid unexpected fees. Interest is charged from the date the transaction or fee is added to your account. For cash withdrawals and cash transactions, it’s charged from the date the withdrawal or transaction is made.
You’ll pay interest on default fees 28 days from when we tell you that the fee has been charged. Interest will be charged at the rate we charge for purchases, and you will not pay any interest on the interest.
If you only pay your minimum payment each month, it will take you longer to clear your balance and cost you a lot more in the long term. If you pay at least double your interest, fees and charges every month, you’ll reduce your balance much quicker.
If you have one of our Credit Cards you can check your credit agreement or monthly statement for your individual rates and fees.
If you have taken out a new card, you may have an introductory or promotional interest rate. This rate could apply to purchases, balance transfers or money transfers.
We’ll let you know how long the introductory/promotional rate will last when you open your new card, or when you take up an offer on an existing card. We'll remind you on your statement two months before your introductory rate ends. We’ll also send a letter or email one month before the rate ends as a final reminder. When the introductory/promotional rate ends you’ll be moved to the standard rate of interest for your card. You can find this on your monthly statement.
How to manage your account and avoid fees
- If you use your card, you’ll need to make a payment every month - even if you're on a 0% interest rate.
- We’ll send you a statement every month to let you know when, and how much you need to pay.
- If you forget to pay, or make your payment late, where applicable, you’ll be charged a £12 late payment fee.
- Refunds don’t count towards your minimum payment - you’ll still need to make a payment if a refund has been made to your account.
- Don’t go over your credit limit. If you do, you’ll need to pay back anything above the limit as soon as possible. Spending over your limit could affect your credit score.
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