Reward Playing cards: The Benefits and Disadvantages

Everybody loves receiving and giving reward playing cards for particular events. They scale back the stress of worrying if the recipient will like these denims or shirt you acquire them. They remove the faux smile and the “I can at all times use a brand new pair of denims” routine from the particular person getting the reward. Nonetheless, watch out for the dangers and hidden price whereas utilizing your reward card.

Shopper Benefits

Yearly, reward playing cards are rising in recognition. Typically, there are three totally different playing cards: store-specific reward playing cards, restaurant reward playing cards and general-purpose reward playing cards. Retailer-specific reward playing cards are meant for use on the specific retailer and often include much less hidden charges. Some shops like Outdated Navy and Banana Republic have grew to become companions and permit their clients to make use of the reward card at both retailer. Restaurant reward playing cards are similar to store-specific reward playing cards. They will let you go and revel in a pleasant dinner as a present. Simply be sure to tip the server the identical share as you’ll if you happen to had been paying the overall invoice. Normal-purpose reward playing cards give the patron a broader vary on the place to make use of the cardboard. A lot of these playing cards are usually Visa, MasterCard or American Categorical and can be utilized anyplace these main bank cards are accepted. The flexibleness is the principle advantage of utilizing the general-purpose card. You possibly can replenish your gasoline tank, exit to eat, purchase live performance tickets or what ever else you wish to do with it

Shopper Disadvantages

Many common function playing cards come loaded with charges. Based on The Lowdown on Reward Playing cards article on, some gift-card applications will situation you one other card in case your card expires. These alternative playing cards will price you from $5.95 to $10. When you order the cardboard on-line or by telephone you may be charged a $four.95 to $eight.95 transport and dealing with payment and a $three.95 to $11.95 service payment. Some reward playing cards will cost you a month-to-month upkeep payment if you happen to nonetheless have a stability in your card after six months or a 12 months. When you nonetheless have a stability after this time period, a $2 to $three month-to-month payment kicks in.

In case your reward card is misplaced or stolen, good luck! Some retailers is not going to exchange a lacking reward card. Different retailers equivalent to Macy’s and Bloomingdales are extra easygoing and can situation you a brand new card if you happen to can present a receipt exhibiting your most up-to-date buy. Some general-purpose playing cards will cancel the lacking card and can re-issue a brand new one for a $5.95 to $10 payment.

So be sure to preserve your card in a secure place, use it earlier than it expires and purchase it immediately from the merchandiser and you’ll keep away from most of those charges.


Based on the Retailers Simply Love Them article on CBC Information On-line, the gross sales of reward playing cards have exploded from $1 billion in 1995 to an anticipated $70 billion in 2006 in america. As of 2004, 68 p.c of all main retailers supply some type of a present card. The quantity might be even larger now that it’s 2006. Espresso big, Starbucks, has estimated that 10 p.c of all their gross sales come from reward playing cards.

One more reason retailers love reward playing cards is customers can pay much less consideration to gross sales they usually are likely to spend greater than what they’ve on the cardboard. Retailers discover that customers will spend the entire quantity on the cardboard and have a small stability of $2 or $three left on it. Chances are high, customers won’t ever use the cardboard once more and this works to the retailer’s benefit.

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