Around 21 per cent of UK cardholders have at least one card that offers cash back, compared to only 17 per cent of plastic users that have a zero per cent product.

The over-50s are the savviest spenders, as they are more than twice as likely (18 per cent) as their younger counterparts under 30 (seven per cent) to have a high-return reward-based card.

“We are seeing a shift in the dynamics of the credit card market as cardholders wise up to the long-term benefits of reward cards and turn their backs on short-term offers,” said Patrick Muir, marketing director for the Morgan Stanley Credit Card.

“We have found that an increasing number of our customers are using their credit cards for everyday purchases such as groceries and petrol to benefit from cash back and rewards, with our average cardholder redeeming £105 every year.”

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