Barclaycard Targets Good Payers Now

Barclaycard has reduced its interest-free period on purchases by six days, in an attempt to squeeze more revenue out of customers who always pay their bills on time.

People used to paying at a certain time may now miss the deadline, resulting in a £20 penalty fine.

More card providers are now expected to follow suit, as they attempt to offset revenue losses from rate tarting and prudent card use. Card firm MBNA has already instigated a £25 annual fee on customers who regularly pay off their balance.

Nick White, head of personal finance at uSwitch.com, commented: "Undoubtedly Barclaycard will get some flack for doing this and some customers may choose to go elsewhere - but I also think they should be applauded for being upfront about it.

"One of the issues with the credit card market is that they are often perceived as being sneaky, and this sort of change could quite easily be introduced in that sort of way," he added.

According to a Barclaycard spokesman, the bank will reduce the interest-free period when it notices a customer has been paying their bill regularly for about six months.

The changes could potentially affect nine million people who hold accounts with Barclaycard.