A rebate card is a card that is similar to a debit card wherein accumulated rebates or points can be used to make purchases at establishments indicated by the issuer. Rebate cards are meant to promote loyalty to the rebate card issuer’s products, services or store. In these difficult times, rebate cards can be useful in increasing a consumer’s purchasing power. For businesses, rebate cards encourage patronage to the rebate card issuer’s business. Because of these advantages, both to the companies issuing rebate cards and to the consumers earning rebates, rebate cards are widely popular these days.
In general, rebate cards may be used anywhere a credit card is accepted. These cards carry the Visa or MasterCard logo and are also called ‘open loop rebate cards’. However, there are cases when rebate card issuers may only be used in limited locations, business types, or only at participating stores. In some cases, when rebate card issuers are also stores themselves, selling goods or providing service, rebate card use may be limited to the rebate card issuer’s store. If the card can only be used at the issuer’s store, the rebate card is called a ‘closed loop rebate card’.
Rebate cards are preferred to cash or check in distributing rebates. Companies have long recognized the efficiency of giving rebates or loyalty points to valued customers. Rebates used to have been distributed via rebate checks. The switch to plastic rebate cards is particularly advantageous to consumers because rebate cards may be sent via mail, while rebate checks take weeks to send.
Rebate cards are offered by many companies to reward customer loyalty. Customers can take advantage of rebate cards by earning points while spending, and consequently increase their purchasing power. Rebate card issuers also gain by encouraging their customers to patronize their products. Thus, rebate cards are advantageous to both customers and issuers. The issuance of rebate cards is an ongoing trend that will likely stay popular for a long time.