Cashback reward schemes a priority for cardholders
Published On 13 November 2006
Cashback reward schemes are now as much of a priority for credit cardholders as interest rates are, according to a new survey.A study by Morgan Stanley Credit Card has discovered that 70 per cent of people switching products for rewards will opt for the cash back option with retail rewards stuck in second place.
Some 29 per cent of cardholders who have recently switched or are planning to switch their credit card package said a reward or a loyalty scheme was a primary consideration in doing so.
This meant reward schemes ranked only marginally behind interest rates as the most important factor for 31 per cent of credit card switchers.
This is a massive increase compared to last year's figures when just seven per cent of cardholders said a reward scheme was a priority compared to 20 per cent who believed interest rates were most important.
Patrick Muir, Morgan Stanley spokesman, said: "With the majority of people paying off their credit cards in full every month, using a credit card with a reward scheme really makes sense.
"With focus shifting away from short term offers, the popularity of reward schemes is no surprise. People are increasingly savvy and are realising that credit cards, like the Morgan Stanley Platinum Card, can genuinely reward customers for everyday spending."
