Cash Rewards

2007-04-27 07:29:02

( Financial )



Giving out cash rewards is one enticing way to lure prospective customers to sign up for credit card companies. Where do cash rewards come from? Instead of investing in a fancy commercial or advertisement, some companies channel their budget into giving out cash rewards especially to their loyal customers.

These companies believe that by giving out cash rewards to loyal customers, a steadier client base is created and customers become happy.

However, beware of cash back reward schemes that abound. Some will promise to give you back a certain amount when you pay a registration fee or a joining fee or others will promise you reward money when you refer more customers. One thing to remember is that you should not be paying a fee if you are being offered cash rewards. These cash rewards should be available at no cost to you.

How does the cash rewards promotion work? When you purchase a product using a certain credit card, you will accumulate points corresponding to a certain amount in the cash rewards promotion. If the points you accumulated are enough to claim the cash rewards, you may do so.

On the other hand, you might want to generate bigger cash rewards so what some customers do is defer claiming their cash rewards, accumulate some more points, and claim the bigger cash rewards at a later time.

This way, the customer keeps coming back and purchasing some more using the credit card and at the same time knows that he or she will be expecting something at a later time.

Some restriction on this promotion is that only the registered customer name will be entitled to claim the cash rewards. In the event that you encounter an accident and pass away, the cash rewards can not be redeemed by anybody else.


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