Tesco introduce Clubcard Pay in the UK which limits spending

The debit card will allow customers to claim extra points when doing their shopping as well as being rewarded for shopping at other shops.

There will be no overdraft and shoppers will be able to use it the same as they would a normal debit card.

Users will be able to withdraw cash from machines and use the card when at checkouts, all the while earning Clubcard points.

Tesco is trialling a new prepaid debit card in stores

Here's what we know about the card:

What is Clubcard Pay?

It's a debit card that you can use anywhere Visa debit cards are accepted, and you'll collect Clubcard points on most of your shopping, both in and out of Tesco.

It also comes with a Round Up savings account, which lets you build up your savings pot seamlessly, by rounding up your spending to the nearest £1.

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This helps you save the change away to use on a rainy day. Your Round Up balance can be transferred out of the account to any other bank account anytime.

You can see and manage both accounts on the Tesco Bank Mobile Banking App.

Am I eligible to open an account?

Tesco Clubcard Pay is available to Tesco Clubcard members who are a resident in the UK and aged 18 or over. Accounts are subject to status.

How do I apply for Clubcard Pay?

You'll need to be registered and signed into your Clubcard account to be able to apply for Clubcard Pay.

The application is all online and should only take you a few minutes to apply and find out if you've been successful.

What is Round Up?

It's a savings account provided with Clubcard Pay, which helps you build your savings pot by rounding up your change to the nearest pound.

What have Tesco said? 

“This innovation by Tesco to grow its younger demographic customer base is a significant move for the industry and challenges the challenger banks, such as Starling and Monzo who offer similar products,” Marketing agency Tcc chief executive Simon Hay told Charged.

“Emotionally connecting with customers to create long lasting loyalty remains a constant challenge for every retailer.”