Spend, and you Can Receive

Consumers expected to reap benefits of credit card rewards during holiday season

By Stephen Mazeika

So it’s drawing towards the end of another year, and the holidays are quickly approaching. Many people that are planning on spending money on gifts and other items during the season are also hoping to maximize purchases by cashing in on bonus incentives offered by credit card companies.

Data from a recent survey compiled by Kelton Research Company found that out of 1,000 people sampled, 50% of the respondents said they intended to use credit and debit cards that offer bonus incentives for purchases this year. These rewards can range from cash back to airline flight miles, and may cause a lot of folks to use these credit cards in order to give themselves a little something in return this holiday season. Not only is this great for cash-strapped American consumers, but also for retailers, who have forecasted lower than average holiday sales this year.

Stores Still Preferred for Purchases vs. the Web

Despite the convenience of online shopping and the increased security of credit and debit card purchases while doing so, most people still prefer to visit physical retail stores as their point of purchase rather than on the internet. It appears that many people only use the internet for researching prices and descriptions of items they may purchase, and then tend to visit store locations to follow through with the sale.

This news was also supported by Lars Holmquist of Vesdia Corporation, a leading supplier of merchant funded reward networks for credit and debit card programs.

"Consumers can earn double to as much as ten times the standard reward program earnings rate by shopping at participating merchants. These accelerated earnings are gained on top of the sale price or best offer that a consumer can find in-store or online."

A Word to the Wise

It’s no secret that people are looking for what they can get in return; and there are ways that holiday shoppers can take advantage of what’s out there. Let’s face it; no one wants to be left out on gaining something for the money they spend.

"Before you kick-off your holiday spending, take a few minutes to learn about your credit card or debit card benefits, and use the one with the richest earning incentives” Holmquist states.

“In this difficult economy retailers value customers' business more than ever and card issuers are offering a broad range of benefits to incent cardholders to use their card versus others - this year the consumer is in the driver's seat."