May 26, 2006
Reward cards
What is it about cash-back reward cards that has people gunning for them? It probably is simple human nature. Not many people can say no to rewards that are offered for doing what you like to do most – shop. And the market for these cards is growing enormously – at last count, over 32 million people across the country were using reward cards!
So, why is the credit card industry, which is not known for its generosity, making such a magnanimous gesture? When any credit card company offers a cash-back or reward scheme for using its credit card, customers are known to usually use this particular card more than the regular ones. So now you have companies like Discover giving away almost $500 million in 2005 alone. Discover was the company that introduced the cash-back scheme nearly two decades ago. Soon other credit card companies like American Express, Citibank, Visa, and many others were offering reward cards and business was booming.
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