Consumers cash in on reward cards
Published: Dec. 31, 2005 at 9:54 PM
NEW YORK, Dec. 31 (UPI) -- Zero-percent balance-transfer offers for credit cards may be on the wane, but U.S. credit card companies are offering cash-back reward cards.
Since 2002, the number of U.S. households using a cash-back card has grown 38 percent to 32.6 million, and cash-back cards are considered the hottest segment of the credit card industry, the New York Times reported Saturday.
Discover, which pioneered cash-back reward cards, said it gave away $500 million in 2005, usually via a 1 percent pay-back in cash.
Discover's Platinum card pays 1 percent for all purchases made on the card, but gives a 5 percent rebate on purchases at Walgreen's, CVS, Rite Aid, LensCrafters and about 10 other merchants.
Credit card companies know that consumers use a reward card as their primary credit card -- 38 percent of reward cardholders said their cash-back card was their primary card, according to TNS, a global market research firm.
Since 2002, the number of U.S. households using a cash-back card has grown 38 percent to 32.6 million, and cash-back cards are considered the hottest segment of the credit card industry, the New York Times reported Saturday.
Discover, which pioneered cash-back reward cards, said it gave away $500 million in 2005, usually via a 1 percent pay-back in cash.
Discover's Platinum card pays 1 percent for all purchases made on the card, but gives a 5 percent rebate on purchases at Walgreen's, CVS, Rite Aid, LensCrafters and about 10 other merchants.
Credit card companies know that consumers use a reward card as their primary credit card -- 38 percent of reward cardholders said their cash-back card was their primary card, according to TNS, a global market research firm.
© 2005 United Press International. All Rights Reserved.
This material may not be reproduced, redistributed, or manipulated in any form.
This material may not be reproduced, redistributed, or manipulated in any form.
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