Credit card companies woo customers with holiday savings

For credit card customers season`s greetings come early this year as major credit cards and retailers team up to give shoppers the most bang for their buck with increases in rewards for the holidays.

Recent caps on intercharge fees have drastically reduced the amount banks can charge merchandisers for debit card transactions, so banks and credit card issuers alike want to steal consumers away from competitors and debit card use by offering customers fantastic incentives for making holiday purchases with plastic.

Cardholders can enjoy increases in cash back amounts and extra air miles while they shop for presents. Cardholders with good-to-excellent credit scoreswho pay their bills in full every month will find opportunities for even more savings and perks.

For example, Discover has teamed up with Amazon.com to bring customers a new rewardsprogram that offers cardholders 2% cash back on up to $250 in purchases each billing period until the end of the year at Amazon.com. Customers can also make purchases at Amazon.com using their cash back bonus to pay for purchases. By linking you credit card to your Amazon account, cardholders can use their points in a dollar-for-dollar exchange at the check-out.

Discover is also offering card members 5% cash back on a wide variety of fashion retailers and restaurants.

The Upromise World MasterCard, issued by Bank of America has its own shopping portals that combine its rebates with rebates from retailers, so that you can get up to 11% cash back on purchases. Shopping for kids? Do not worry because you have not been left out. CitiBank is offering customers 5% cash back on purchases at toy stores.

There are a few things to keep in mind when trying to get the most perks from your purchases. First, if you have more than one rewards card, compare the savings and rewards programs. Then use the one that is going to give them the maximum cash back or rewards for each purchase.

Also, be aware of where you apply for a card because that may change the terms of the rewards program. For example, if you apply for a Citi credit card using their website, they offer $150 cash back on the first $500 of spending. However, by doing a Google search for Citi dividend $200, you will actually get results with a better bonus.

Bear in mind that most cards with revolving rebates require customers to register on the issuer`s site for quarterly rebates every three months.

Doug Nicholas

Doug Nicholas, a financial consultant by profession with a Masters degree in International Business from Brown University, is also an ardent writer. Though he has a full time job at one of the companies listed on Wall Street, he does manage to squeeze in time to follow his passion. He puts his ideas to words in his articles related to finance and business.