More and more financial companies are turning their back from cash back cards also known as cash reversal cards. From the 43 cards that had this reward program in 2005, it has dropped to only 13 this year. Some of the companies have invested into giving other kinds of programs to their customers.
In fact, Stuart McKeggie, Head of the Sainsbury Credit Cards, stated that they are offering other alternatives for their reward programs since a lot of companies do not have cash back cards feature anymore. He even noted that more consumer benefits will be offered, far beyond what this particular program has to offer.
As a result of this major change, consumers tend to get cards that have other reward programs such as the points system. Compared to the old program, customers can accumulate points based on how they use credit cards. The points can offer greater discounts in the end such as discounts in online shopping, travel miles, and even food prices.
Though most consumers are already used to using cards with cash back offers, the study of Financial Facts explained that these cards are slanted to a specific service only. For example, Barclays OnePulse credit card offers five percent of cash reversal only if a customer spends on Transport for London. Financial Facts stated that there is little benefit from this kind of card aside from the usual percentage of reversal. Therefore, people are only limited to take advantage of this kind of offer in certain instances only.
As for these changes, Financial Facts also suggested that people go for a more general kind of credit card. They are firm that cash reversal credit cards do not have any additional value to their customers. Therefore, people can benefit much from other cards given that their expenses are not focused on just one service or brand. If they are, the offers of the old program can definitely match their daily needs. However, they can still find opportunities in other types of cards with a different reward program offer.
In addition, Financial Facts advised customers that they need not be afraid of changing what they had constantly been using. They recommend trying other cards that offer different reward programs explaining that the credit market changes from time to time. Hence, if the cash reversal cards have become so helpful for them in the past, they still need to adapt to the market of credit cards to constantly live with it. This way, people can take more advantage and benefits of the card they have.