Information on a Cash rewards card

2007-03-08 10:33:40

( Financial )



Plastic money is a way of life for many people. It offers great convenience for shopping. Having a statement of account also helps track expenditure. With many players in the arena, it was natural for the companies to come up with ways to attract new customers and to retain them.

A Cash rewards card can provide you with the benefits of cash and plastic money. There are many things you can consider when it comes to daily expenditure. And, in such cases, a cash rewards card suits best the requirement of using it without having to worry about the credit.

Cash rewards were introduced by all card companies. Cash rewards are another way of discount. The card companies give a discount on the purchases. These are a way of cross promotion between the product vendors and the card companies.

Consumers like you and business establishments benefit in terms of increased volumes in business. With margins shrinking, more volumes can alone shore up the bottom lines of business. This is achieved through loyalty programs like cash discounts. A cash rewards card is but another instrument, so to say.

A cash rewards card stores money which can be retrieved at outlets. More like a debit card, you can use your own money, paid in advance. Cash payments are getting scarcer since plastic money is taking over.

However, the cost to the user of a Credit Card is often too much, bordering on fleecing. Such bad experiences have prompted customers to move away from Credit cards to Debit cards and smart cards.

In the case of Credit Cards, the card company is financing the transactions and collects fees. In Debit cards and cash cards, the card company just manages the card holder’s money and provides you the facility. The income stream of the card company is from the service charges it collects from the point of sale.


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