Merchant Services – Merchant Accounts – Credit Card Payments – Consumer Guides

The competition among credit card companies is intensifying by the day and in order to beat the competition, card issuers are coming up with new offers and incentives to entice customers each and every day. Reward credit cards have gradually evolved in this race for survival among credit card issuers and banks. Why would reward credit cards, which were once issued only to the loyal customers of a credit card company, be promoted and distributed in such large numbers? Well, market conditions have pressured credit card issuers into providing newer more compelling credit card offers, allowing the common man on the street to gain immensely from the newest and best reward credit cards currently available. This article will describe the various types of reward credit cards, features, benefits, tips for use, and things to watch out for maximum advantage.

In essence, reward credit cardholders are entitled to receive rewards based on the points he or she gains through their card purchases over time. The most common types of reward credit cards seen in the marketplace are air miles credit cards and cash back credit cards.

Air miles credit cards provide air miles for each dollar spent using the card and allow the user to redeem the accumulated miles for hotel accommodations, air travel or car rentals. Such offers are especially beneficial for those who are frequent fliers. Cash back credit cards typically give back a set percentage of total purchases as a cash rebate based on the total bill, either monthly or annually.

Who Should Be Using a Reward Credit Card?

Although the credit card companies are undoubtedly aiming to profit from every type of credit card they roll out in the market, one can expect some economic advantages behind the reward credit cards for consumers as well. Reward benefits for cardholders are usually offset by higher interest rates and additional fees and surcharges that exceed what a normal credit card might incur. Reward credit cards are best suited for individuals that can confidently pay off their card balance each and every month so as not to incur finance charges by carrying a balance. The points that you earn from your purchases can be built up progressively but are better suited to individuals or businesses that use their cards often and are probably not best for those who use credit cards very sparsely primarily because by the time the cardholder builds up enough points for a viable reward redemption, many times, the expiration date on those points will have already expired.

Tips for Use

So if you do plan on acquiring a reward credit card, to get the most out of the card, you should try to use it extensively, including virtually every bill you pay, including electricity and gas bills, phone service expenses, weekly grocery shopping, and internet and cable TV, etc. If you are financially sound enough to make the repayments in time, there are even some reward credit cards that will allow you to charge your mortgage or rent payment on your card.

Also, it is a good idea to apply for an add-on card for your spouse and distribute the spending on both. This way the customer could gain more bonus points for the same expenditure and hence better rewards.

To sum it up, the trick is quite simple, use your reward credit card as often as possible (well within your repayment ability, of course), always pay off the card balance at the end of each month, and reap the reward benefits.

Finally, before concluding, a word of advice; prior to applying for a reward credit card, do a bit of research to see which companies are offering the best reward credit cards and which among them is the most advantageous for your personal situation. The Internet provides a wealth of information on various card types and offers so be sure to utilize the information available online. A little bit of homework will make all the difference in your reward credit cards selection.

There are hundreds of new credit card offers available in the U. S market. The credit card companies compete against each other with attractive incentives such as cash back, points reward schemes and balance transfer offers at zero percent. There are lot of new offers have been introduced in U. S by worldwide banks. Among those new offers some credit cards are specially introduced as reward credit cards. Let see some good deals and their detailed descriptions. Platinum Business FreedomPass Credit Card from OPEN(sm) the small business team: This card offers 5,000 point welcome bonus with first purchase and the card member can redeem the points for savings on any flight, hotel, car rental or cruise. There are no blackout dates and no travel restrictions. The card members will earn 1 point for every dollar they spend and provides option to pay over time or pay in full. There is no annual fee and 0% intro APR for 12 months. Provides OPEN Savings® like: Automatic discounts with FedEx, Delta®, Courtyard by Marriott®, and more. BoatU. S. ™ Platinum Plus® Visa® Card: This card offers 0% Intro Annual Percentage Rate (APR)on balance transfers and cash advance checks for the first 12 billing cycles. The card user can earn 1 point for every net retail purchase dollar spent and also he can redeem points for travel, merchandise, gift certificates, and cash. Provides Access to the MyConciergeSM service, a unique personal assistance service. There is absolute fraud protection against unauthorized use, online and offline. And there is no annual fee. Discover® Motiva Card: This card has its own specific advantages like the card members can Pay-On-Time bonus equal to a full month’s interest each time they make 6 on-time payments in a row– twice a year, every year when they pay on-time every month. Provides 5% to 20% Cashback Bonus at top online retailers through the exclusive online site. The card member will earn up to 1% Cashback Bonus on all other purchases and unlimited cash rewards that never expire as long as the card member use the card. There is no annual fee. The Knot Credit Card from American Express: This card provides start out with a great wedding gift – 5,000 Membership Rewards points the first time the card member use the Card, which can be redeemed for a $50 gift card. The card member will earn an additional 10,000 bonus points when they spend over $15,000 on the card annually. The card member can track all of their wedding related expenses with the Card on one monthly statement. There is no annual fee and the card member can pay the outstanding amount in over time or in full. The Intro APR is 12. 24% and there is no intro period. Provides exclusive welcome gift that the card members can plan every detail of their wedding with The Knot Wedding Planning Kit, including the Knot wedding binder, where they can manage wedding ideas, budgets, guest lists, to-do’s and more. Financial Rewards® Visa® Platinum Plus® Card: This card offers 0% Intro APR on purchases and balance transfers for the first 6 billing cycles. The card members will earn 5 bonus points with their first purchase and the earned points do not expire for 5 years. Provides online banking service and total security protection. There is no annual fee. Blue from American Express®: This card offers Fee-Free Rewards Program and 0% APR for up to 15 months. There is no annual fee. Provides low balance transfer APR – 4. 99% Fixed APR for the life of the balance. Actuallly Blue is named as the card members launch pad to standout shopping and entertainment rewards and one-of-a-kind experiences. Citi® Upromise® Platinum Select® MasterCard®: This card offers the 0% Intro APR and the Intro period is 12 months. There is no annual fee. Helps the card members to join useful programs through which the card members can Helps families and save some money for college and its free to join. The card members will earn 10% college savings on many grocery and drug store purchases, 2% college savings on purchase of gas at Exxon and Mobil locations and 1% college savings on purchases everywhere you shop. Citi® Home Rebate Platinum Select® MasterCard®: This card provides 0% Intro APR and the Intro period is 12 months. There is no annual fee. The card members will earn full 6% Rebate on Utilities, Cable/Satellite TV, Internet Connection, and Telecommunications for 6 months. The cardholders will get a statement credit instead to start saving for their dream house. Also provides full 1% on all other purchases and the rebate will automatically applied to the Cardholder’s Mortgage Principal. There are no cap or limits on the amount of rebates cardholders can accumulate in a Year. Citi® Driver’s Edge® Platinum Select® Card: This card provides 0% Intro APR and the intro period is 12 months. There is no annual fee. The card members will earn rebates for every mile driven and the rebates can be applied towards car maintenance, or to buy or lease a new or used car. The card members will earn 6% rebates on Gas Station, Supermarket, and Drugstore Purchases for 12 Full Months, 3% Rebates after, and 1% Rebates on all other purchases. Rebates can also be applied to the Thank You Network. Citi® Platinum Select®/AAdvantage® World MasterCard®: The Intro APR is 18. 24% and there is no annual fee. The card members will earn 15,000 Bonus Miles after the first purchase. There are no blackout dates for award travel on American Airlines, American Eagle, and AmericanConnection® Carriers. The card members will earn one mile for every dollar spent on eligible purchases – Up To 100,000 miles per year and the earned miles may never expire. The card members can redeem miles with over 25 of the World’s Top Airlines, Major Car Rental Companies, and Hundreds of Hotels Worldwide. Citi® Diamond Preferred® Rewards Card: This card provides 0% Intro APR and the intro period is 12 months . There is no annual fee. Provides $50 Gift Card — Redeem 6,000 Bonus Points after first purchase and also provides 0% APR on balance transfers for twelve months. The card members will earn five bonus ThankYou Points for every dollar spent at Supermarkets, Drugstores and Gas Stations for 12 months and earn one bonus ThankYou Point for every dollar spent on all other purchases. Citi® Hilton HHonors® Visa® Signature Card: This card offers 15,000 Hhonors Points with the very first purchase. The card members earn Double Dip® and receive both Hilton HHonors Points and Airline Miles for the same stay at Over 2,500 hotels and more than 55 participating airlines. The card members will earn three HHonors Bonus Points for every dollar spent using the card at Hilton Family Hotels, plus two HHonors Bonus Points for every dollar spent on other purchases. Provides complimentary silver VIP membership for the first year. There is no annual fee. The Chase Business Cash Rewards Card: The card user will earn up to 5% cash back with unlimited rewards potential. There are no merchant or category spending restrictions, the card memeber can earn points by shopping wherever he want, for whatever he want. Provides 0% APR

on purchases and balance transfers for up to 12 months. There is no annual fee. The card user can opt for additional cards for his employees. TripRewards® MasterCard® Credit Card: This card offers 0% introductory APR on balance transfers and cash advance checks for the first 12 billing cycles. The card member earn 2 points for every $1 in net retail purchases and earn 13 points for every $1 spent for qualifying TripRewards hotel stays. There is no annual fee. Provides 24-hour online access and Absolute Fraud Protection. Advanta Platinum BusinessCard with Rewards: This card offers 0% Intro APR and intro period is 15 months. There is no annual fee. Provides 0% APR for 15 months on Balance Transfers, 7. 99% fixed APR there after and 7. 99% variable APR on purchases. The card members have their own choice of 5% Cash Back or Travel Rewards and there is no limit on earnings. Provides $0 Fraud Liability. And the card members can get personalized card — their company name on the top of the card. American Express® Preferred Rewards Gold Card: This card offers 0% Intro APR and there is no intro period. There is no annual fee for the first year and $125 there after. The card member get 10,000 Membership Rewards® points redeemable for rewards right away and there is no pre-set spending limit. Provides exclusive Gold Card events such as exclusive access to tickets for select concerts, shows, major sporting events, and more in cities nationwide. Global Assist® Plus Hotline and many more benefits included. American Express® Preferred Rewards Green Card: This card offers 0% Intro APR and there is no intro period. The annual fee is free for the first year and $95 there after. The card members will get 5,000 Bonus Membership Rewards® points redeemable for rewards right away. The membership rewards program also let them transfer points to 11 frequent flyer programs: 1 point = 1 frequent flyer mile or frequent guest credit for most programs. Global Assist® Plus Hotline allows the card members to travel with total peace of mind when they are more than 100 miles away from home. Provides many other travel and shopping benefits and there is no preset spending limit. One from American Express®: The Intro APR is 14. 24% and there is no intro period. The annual fee is free for the first year and $35 there after. The card members never pay interest on new purchases and the Savings AcceleratorSM Plan contributes 1% of eligible purchases into an FDIC-insured High-Yield Savings Account in the card members name. Thereis no preset spending limit. Bank of America Rewards™ American Express® Card: This Card offers 0% Intro Annual Percentage Rate (APR) on balance transfers and cash advance checks for the first 12 billing cycles. There is no annual fee and the flexibility to pay over time. The user can reedeem the points for travel with no blackout dates, discounts at hotels, cash, brand-name merchandise, or gift certificates. Earn one point for every net retail purchase dollar. The card user gets Access to special Cardmember offers from American Express to save on shopping, dining, travel, hotels, and much more. Provides free 24/7 Concierge Service. Business Green Rewards Card from OPENSM The Small Business Team: The card member receives 5,000 bonus points to start. The annual fee is free for the first year and a $95 savings. There are no preset spending limit or finance charges. The card members will earn One membership reward point for virtually every dollar they spend and discounts with FedEx, Delta®, Courtyard by Marriott®, and more. The card members can redeem their points for top-tier rewards including travel, merchandise, office equipment, and gift cards for them or for their employees. Platinum Business FreedomPass® Credit Card: This card offer 0% Intro APR and the Intro period is for 6 months. There is no annual fee. The card member will earn 5000 bonus points with first purchase and redeem for savings on any flight, hotel, car rental or cruise. There are no blackout dates and no restrictions. IN:CHICAGOSM Card from American Express®: This card offers 0% Intro APR and the intro period is 6 months. There is no annual fee. The card member will earn one INSIDESM Rewards point for virtually every eligible dollar they spend, whether they’re in Chicago or not. The earned points have no expiration date and the card members can redeem points for rewards in Chicago, New York and Los Angeles. IN:LASM Card from American Express®: This card offers 0% Intro APR and the intro period is 6 months. There is no annual fee. The card member will earn one INSIDESM Rewards point for virtually every eligible dollar they spend, whether they’re in Los Angeles or not. The earned points have no expiration date and the card members can redeem points for rewards in Los Angeles, New York and Chicago. IN:NYC® Card from American Express: This card offers 0% Intro APR and the intro period is 6 months. There is no annual fee. The card member will earn one INSIDESM Rewards point for virtually every eligible dollar they spend in New York city. The earned points have no expiration date and the card members can redeem points for rewards in New York. This card provides the option to carry balance. Chase Flexible Rewards Platinum Visa® Card: This card offers 0% Intro APR and the intro period is 6 months. There is no annual fee. The card members will earn 1 point for every dollar spent and the card members can earn travel fast! that means all their purchases earn points for them. Also provides 0% introductory APR for up to 12 months on all purchases and balance transfers. The card member can save even more with low rates. The time period for the introductory APR and the balance transfers to which it will apply will be based on the review of the applicant’s application and credit history. Chase Travel Plus Platinum Visa®: This card offers 0% Intro APR and the intro period is 6 months. The annual fee for this card is $29. The card members will earn 1 mile for every dollar in purchases and they redeem their points for flights, hotel stays, car rentals, cruises and more! Provides the option to choose from over 250 airlines without restrictions. Also provides 0% Introductory APR on purchases and balance transfers for up to 12 months. The time period for the introductory APR and the balances to which it will apply will be based on our review of your credit history. Discover® More Sealife Card: This card offers 0% Intro APR and the Intro period is 12 months. There is no annual fee. Also provides 0% Intro APR for purchases and balance transfers for 12 months. The card members will earn 5% Cashback Bonus on Get More purchases in popular categories that change four times a year like home, apparel and more. Also earns up to 1% Cashback Bonus on all other purchases automatically. Provides unlimited cash rewards that never expire,$0 fraud liability guarantee and easiest online account management options. The card members can double their Cashback Bonus (turn $20 into $40) when they redeem for gift cards or certificates from many of the 70 brand name partners. Bank of America Visa Signature® with WorldPoints™: This card offers 0% APR and the Intro period is for 12 billing cycles. There is no annual fee. Also provides 0% APR on balance transfers and cash advance checks for the first 12 billing cycles. The card members will earn 1 point for every dollar they spend in net retail purchases. § Points are redeemable for cash, brand name merchandise, travel with no blackout dates, dining certificates and more. Provides the advantage of preferred seating – Visa Signature Access gives the card members the exclusive entry to exciting events as well as the best seats at sports, entertainment, and cultural venues. The card members can reserve last-minute tables at popular restaurants – Visa Signature Dining makes it easy to get preferrred reservations, discounts, and special offers at the nation’s hottest restaurants. The card members also enjoy more savings and more extras – get discounts at select merchants, valuable upgrades, and savings of up to 50% on accommodations at spectacular places. Visa Signature Privileges make it possible. The card members receive personalized assistance – From hard-to-find gifts to travel and entertainment planning, let Visa Signature Concierge handle all the details. Provides absolute fraud protection. Pet Rewards™ Visa®: This card offers 0% Intro APR and the Intro Period is Six Billing Cycles. There is no annual fee. Gives 500 bonus points after first purchase. 1 point for every dollar spend on everyday purchases and rewards begin at just 750 points. The card user can earn points toward veterinary services, pet food discount certificates, and shelter donations also earn two PetRewards Points for each dollar spend at participating veterinary clinics, pet food retailers, farm and feed stores, and neighborhood pet specialty stores. 2% Back MasterCard This card offers 0% Intro APR and the card members get 2% back on every purchase, everywhere – automatically! The card members can manage their account with 24/7 online access and bill pay and the card members can choose a payment due date that’s convenient for them. Provides 100% fraud liability protection and great built-in MasterCard benefits. Discover® Business Miles Card: This card provides 0% Intro APR and the Intro period is 12 months. There is no annual fee. Provides 0% Intro APR on card purchases. The card user will earn Double Miles on travel and gas. The card member get up to 1 Mile per dollar on all other purchases. There are no restrictions on any airline, any date, any seat. Chase Freedom Cash: This card offers 05 intro APR and the APR period is for 6 months. There is no annual fee. The card member can Earn 3% cash back for every eligible $1 spent in purchases at Grocery Stores, Stock up on food, household goods and more. Also earn 3% cash back for gas station purchases such as using the card for fuel, repairs, car washes, and other purchases. The same 3% cash back offers also applicable for purchases at Quick Service Restaurants, the rewards add up fast from pizza to hamburgers to tacos – even sandwich shops, coffee houses and more. The card members earn 1% cash back for every $1 spent in purchases everywhere else. The card members get a $50 Check once they have earned $50 in rewards. The card members can save up to $200 in rewards and redeem for $250 cash back.

As the credit card market becomes more competitive than ever, banks and lending institutions are coming up with new marketing and financial strategies to obtain more customers. One of those strategies used to acquire more customers is through the use of a cash back credit card.

By definition, those are credit cards that will return a fixed percentage of cash back to the customer according to the amount of purchases charged on the credit card. Usually, the cash back rebate is typically anywhere between 1 to 2% and is computed within a given time frame. Therefore, cash back credit cards might result in a good saving tool if used properly and conscientiously.

Let’s assume that a given person will use his/her credit card and will also carry a monthly card balance. If the ongoing interest rate is very high, the finance charges will or than likely offset any of the savings gained from the cash rebates. On the other hand, if the card balance is paid in full at the end of every grace period, the cash back rebates earned from the credit card will usually end up earning the cardholder money back and sometimes a significant amount depending on how often the card is used.

Cash back credit cards will payout the cash rebates earned either by crediting the actual earned rebate back against the existing card balance or will pay the cardholder with a rebate check, usually in $50 to $100 increments.

With the notion of accumulating cash with card purchases, people will psychologically tend to use their credit cards more than other payment options. Very often, cardholders will set a specific time frame for their card purchase activities in order to accumulate the most cash rebates possible. As more and more companies accept credit cards, cardholders are becoming more and more comfortable with using their respective cards to pay virtually everything including utility bills, mortgages and rent payments. With a 1% to as high as a 5% cash back bonus on all purchases, cardholders anticipate some hefty savings from a cash back credit card.

Not surprisingly, cash back credit cards are very popular with consumers. But cardholders must be wary of using them correctly, if they wish to derive maximum benefit. Banks and credit card issuers typically design the cards to maximize their own profit not the consumers profit because card issuers anticipate the cards will not be used efficiently by some, if not many of the cardholders utilizing these cards.

Cash back credit cards are among the many financial tools that can be truly rewarding for cardholders that use the cards effectively and look beyond just the pure attraction of receiving cash back. If cardholders are vigilante about paying off their card balances each and every month, they can potentially rack up significant savings from a cash back credit card. But if not, they might end up paying out significantly more in finance charges over time than their old credit card.