Rewards credit cards are on the rise again, thanks to banks that are trying to shift cardholders away from less-profitable debit cards. After a lull during the recent recession, banks are once again flooding mailboxes with credit card offers, and many of them carry those little extras that consumers have come to love: airline miles, travel points, free merchandise and cash back. Now’s a great time to review the many benefits rewards cards offer to cardholders and businesses alike.
There are many different types of credit cards — “plain vanilla”, premium, corporate, B2B — but rewards cards rank high in popularity with consumers. And why not? Who doesn’t love being rewarded for spending money?
Consumers who were surveyed for the TSYS 2013 Consumer Payment Choice Study confirmed that. When asked what features they most valued with their preferred payment type, 36 percent said the rewards or offers associated with the card. And 32 percent indicated that they had received more offers to open rewards credit cards — including cash back and loyalty points — than they had in the past.
Rewards customers have become very savvy about and loyal to their favorite rewards cards, using them to their best advantage. A recent Aite Group survey of rewards cardholders revealed that after no annual fees, the rewards themselves were the second most important reason they chose a specific card, ranking higher than low interest rates.
Obviously, rewards card shoppers are ready to take full advantage of their credit lines, which can pay off for merchants by delivering more and higher transactions. Credit card customers are already known for spending more and purchasing higher quality merchandise because of the freedom paying with plastic gives them. Add rewards to the mix and you’ve got shoppers who are motivated to buy because each purchase adds to their accumulated points/miles/cash.
Of course, to benefit from all this, merchants must be ready to accept rewards cards — and for that, they need a merchant account. TransFirst® can offer you the best credit card processing solution regardless of your business: traditional retail, online, brick and click, mobile, and MOTO.
Credit cards that carry rewards are a winning combination for both shoppers and merchants, so don’t lose out! Claim your share of the rewards credit card market by establishing your merchant account with TransFirst today.