MILLIONS of credit card holders will soon be switched to Visa after a major bank signed a new deal with the card processor.
Customers of Lloyds, Halifax, Bank of Scotland and MBNA currently have Mastercards.
But now they are set to be issued with new credit cards after Lloyds Banking Group said it will make the move to a different card issuer.
Around 10million credit cards will be converted from Mastercard to Visa over the next two years.
This will include a combination of retail and business customers.
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It's not clear yet when this will start, but is understood to be a phased process set to be completed by the end of 2026.
Visa and Mastercard are the UK's biggest payments firms, accounting for 95% of transactions on UK cards.
The shake up won't affect how you pay or where you can use your card.
But at some point you'll be sent a new Visa card and PIN if you currently have a Mastercard credit card with any of these banks.
It's worth checking that your address and contact details are up to date so that you get yours.
Your Visa card won't stop working until you activate the new one though.
Customers who bank with Lloyds, Halifax, Bank of Scotland already have Visa debit cards.
The latest change means all types of card will now be Visa.
Marc Lien, credit cards managing director at Lloyds Banking Group said: "Our expanded partnership with Visa brings significant benefits to our customers, offering a seamless way to make payments, in addition to a range of upcoming innovative new products and services.
"We look forward to sharing the detail of these with customers in the future."
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Mandy Lamb, managing director, UK & Ireland at Visa, said: "We're excited to take our long-standing partnership with Lloyds Banking Group to the next level, building on 40-years working together, delivering solutions that customers use and love.
"Together we'll be enhancing the experience for debit card users, whilst launching innovative new products and services for credit card users too."
Banks can change the card network they use at any time, and this can be down to a variety of reasons, for example new partnerships, strategic decisions, or changes in contract terms.
Customers of Santander, First Direct and Natwest were sent Mastercard debit cards to replace Visa in a big shift in 2021.
Banks at the time denied their decision was linked to fees charged by Visa and said it was to improve customer experience.
But the change left some customers disgruntled due to their new cards failing at the checkouts.
IN OTHER NEWS
The cost of borrowing money on a credit card has hit a record high, new figures reveal.
Interest rates on purchases reached 35.3%, on average, in June this year, according to Moneyfacts.
It's the highest APR (annual percentage rate) since its electronic records began back in June 2006.
The APR indicates the cost of borrowing over a year, including the interest and any fees.
For instance, borrowing £1,000 at the average rate of 35.3% would cost you £1,173.49 in total.
Moneyfacts said that a combination of card withdrawals and interest rate rises have all contributed to this change.
The average rate at the same time last year was 31.2% and 26.7% in 2022.
The Bank of England (BoE) has left interest rates unchanged at a 16-year high of 5.25% since August last year.
The base rate is used by banks and lenders to set the rates they offer to customers, including loans and credit cards,
Although the rate has remained unchanged, it is far higher than the historic low of 0.1% in December 2021, pushing up borrowing costs.
The exact rate you get on a credit card depends on your circumstances though and shopping around can still get you a better deal than the average rates.
According to Moneyfacts the provider with the lowest purchase APR and purchase PA currently is from The Co-operative Bank's 3-year fixed rate Visa at 8.9%.
At the other end of the scale, American Express' Platinum credit card has a whopping APR of 704.6% and PA of 31%.
