Tesco links with Avis in assault on Nectar

Tesco has signed up car rental giant Avis as the second earn and redeem partner for its Clubcard loyalty card scheme.

The deal means customers can collect points when renting cars from Avis and pay for car rental with Clubcard points. Tesco's other earn and redeem partner is Marriott Hotels.

The supermarket claims the agreement will enable it to offer up to 75% better value than rival scheme Nectar, which came under fire last week from consumer groups for increasing the amount of money that cardholders must spend to earn certain goods.

Nectar's 13m members have to spend £250 with partners such as Debenhams and Sainsbury's to earn enough points for a £2.88 McDonald's meal, while it takes £4200 worth of spending to earn enough for a £38 toaster.

Tesco said the agreement with Clubcard would allow its 11m customers to pay for their Avis car rental by redeeming vouchers at four times their value. Thus, a £2.50 Tesco voucher will provide a £10 discount at Avis.

However, Nectar has hit back at Tesco's claims, saying that 97% of Tesco's redemptions take place in-store and not through partners.

'This is equivalent to money off shopping within the Nectar scheme at Sainsbury's, Argos or Debenhams, which means the "75% better value" isn't relevant,' said a spokeswoman.

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