12:48 18 March 2013
The new scheme guarantees that Tesco will check shoppers' baskets against prices at Sainsbury's, among other rivals.
And if the shopper could have bought the same items cheaper elsewhere, he or she will receive a voucher for the difference, up to a maximum of £10.
This is great news for regular Tesco shoppers who previously had to input their receipt details online to find out if they could have bought the same goods cheaper elsewhere.
But there are no such price promises on offer when it comes to supermarket credit cards - so if you were thinking of putting one in your trolley you will have to do your own homework as to which is the best deal. So what's out there?
Tesco Clubcard Credit Card
The popular Tesco Clubcard Credit Card comes in two guises: the Tesco Clubcard Credit Card for Balance Transfers and the Tesco Clubcard Credit Card for Purchases.
As the names suggest, the one you choose will depend on how you plan to use your card.
Either way, the introductory offers available are not too shabby at all.
The Tesco Clubcard for Balance Transfers, for example, offers an attractive 23 months at 0% on transferred debts (subject to a 2.9% fee).
It also offers nine months interest-free spending, after which the representative APR is 16.9%, as well as access to the Clubcard reward scheme.
That's still not the best balance transfer deal on the market though.
Both Barclaycard and Halifax are now giving new customers up to an incredible 25 months at 0% on balance transfers.
And while the Halifax balance transfer fee is nominally higher than Tesco's at 3%, Barclaycard's is the same on the 25-month deal, and lower at 2.8% on its similar card offering 0% for 24 months.
When it comes to the Tesco Clubcard Credit Card for Purchases, however, it is actually the market-leading card of its kind, offering a record16-months' interest-free on purchases made with card.
But the card also gives new customers nine months at 0% on balance transfers (again, with a 2.9% fee), plus access to the Clubcard scheme.
The representative APR when both 0% periods expire on the card is 16.9% (variable).
M&S Credit Card
The M&S Credit Card is aimed at people looking to avoid paying interest on their shopping for an initial period, as well as those who frequent M&S stores.
It sits just below the Tesco purchases card in the best buy tables with an offer of 0% on purchases for 15 months, as well as 12 months at 0% on balance transfers (subject to a 2.9% fee).
With a representative APR of 16.9% (variable) therefter, the M&S Credit Card is a better alternative to the Tesco card if you would prefer to collect M&S points or are looking for a flexible friend for both purchases and balance transfers.
It also offers fee-free travel money purchases, but is way off the market-leading balance transfer only offers.
Sainsbury's Low Rate Credit Card
Rather than fight Tesco and M&S on interest-free purchases or balance transfers, Sainsbury's is currently concentrating on other areas of the credit card market.
The supermarket chain's Low Rate Credit Card, for example, is the current market leader in its field.
It charges just 6.9% (variable) on both purchases and balance transfers and imposes no balance transfer fee.
Its nearest competitor - the Barclaycard Platinum Simplicity - has a representative APR of 7.9% (variable).
Sainsbury's Cashback Credit Card
This Sainsbury's card offers a generous 5% on all Sainsbury's shopping for the first three months and 1% on all retail purchases made thereafter.
However, as with all cashback cards, it is vital to clear the balance every month to avoid wiping out the benefits by incurring interest at its representative APR of 17.9% (variable) once the six-month 0% on purchases deal has ended.
It is a great choice for anyone who prefers to shop at Sainsbury's stores and pays off their balance in full every month.
What's more, all the cashback cards on the market at the moment offering a higher rate of cashback come with annual fees.
The Barclaycard Cashback Card, for example, charges £24 - pushing its representative APR up to 24.8% (variable) - for access to its cashback deal of 6% cashback on your top five purchases in the first three months and up to 2% thereafter.
The flipside is that it pays the top rate on all purchases, not just those made in a particular store.
Fans of the Nectar reward scheme may also prefer the Sainsbury's Nectar Card, which offers 10 points for every £1 spent in Sainsbury's in the first three months and points on all spending thereafter.
It too offers six months interest-free spending, after which the representative APR is 17.9% (variable).
Asda Money Credit Card
The Asda Money Credit Card is not a market leader in any area.
Its balance transfer offer of 12 months (with a 2.9% fee) is less than half the length of the longest deals on the market.
And its cashback offer of 1% on all Asda store and petrol station purchases, plus 0.5% elsewhere, is nowhere near the most generous deals available.
However, it remains an appealing option for anyone who does a lot of shopping at Asda and pays his or her balance off each month.
The representative APR is also on the low side at 14.9% (variable) for qualifying customers.
Whatever your priority, you can shop around for the best deal for you at MoneySupemarket's credit card channel.
Please note: Any rates or deals mentioned in this article were available at the time of writing. Click on a highlighted product and apply direct.
Disclaimer: Supanet is not responsible for, and disclaims any and all liability for the content of comments written by contributors to this website
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