May 8, 2009

Credit Card Rewards, Pt.1
  New choices to pick from.

With the increasing rise in credit card interest rates, consumers need to be more aware of what lenders are offering and how reward incentives measure up. Although recent statistics indicate Americans have curbed spending and are using their debit cards over credit cards with greater frequency, both payment conveniences are here to stay. Banks are aggressively marketing incentive programs to loyal customers to capitalize on all those lost transactions and fighting to gain a larger market share by offering numerous reward systems. Many of the reward systems are very inviting while at the same time difficult to understand. Added to the problem is an unstable economy where large and at one time considered solid organizations are seeking relief in the courts from escalating credit card defaults and plunging stock prices. Some of these stumbling organizations have been strong supporters of rewards systems in the past by offering incentives to use their products.

A recent merger between Delta and Northwest Airlines has left many Northwest customers sitting with virtually worthless mile points. The latest casualty of the sagging market and decline in sales is General Motors (GM). The organization is currently considering a restructuring plan to keep from filing a Chapter 11 Bankruptcy. Many experts say a bankruptcy is inevitable. If so, the move would threaten yet another group of consumers who have earned thousands of dollars from credit card rewards. Affinity Solutions is an organization that manages rewards systems for leading retailers and maintains a marketing database that allows businesses to target consumer spending behavior. According to Jonathan Silver’s, CEO of Affinity Solutions, the company builds relationships with retailers and in turn, helps the retailers build relationships with their customers. In doing so, the retailer is better able to offer their customers a more secure credit card reward system that is tailored to their unique needs and spending habits.

Affinity Solutions maintains a marketing database which helps lenders identify organizations or local services that the end consumer would find valuable. Affinity partners with an impressive list of credit card providers, including JPMorgan Chase and Citibank in addition to over 400 major retailers. Companies like Affinity assist organizations in producing creative ways to offer inviting rewards systems to entice consumers to increase spending. With their mass marketing strategies, consumers can effectively choose the right rewards system to fit their unique needs and values.

Continued...
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