January 26, 2010
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News: Barclay Launches Rewards Program
Residents of the United Kingdom now have a credit card program that rewards cardholders for increased spending. Monday Barclay launched a new program that is expected to revolutionize the rewards market and is considered to be the largest ever offered in the nation. The new program will be made available to all of its eight million credit cardholders. It's a surprising move in light of the fact that Barclaycard had announced in December just three weeks before Christmas that it would be cutting 350 positions in its Glasgow operations. Credit cardholders will automatically be enrolled in the new program and will not need to contact the company to take advantage of it.
Barclaycard customers will be able to use their reward points at over 30,000 participating merchants. One percent of all credit card purchases will be earned that can be saved or applied toward future purchases. According to Sarah Newman, a spokesperson for Barclay, said that cardholders will not be required to collect or save vouchers. Special offers and gifts will be used to reward customers for their loyalty. Furthermore, merchants joining the program gain the extra advantage of being a part of a major credit card brand, a valuable perk in the midst of a difficult trading market.
Most credit card rewards program in the UK offer a 0.5 percent cash back reward. Barclay's one percent program has the potential to push the company's major competitors out of the market. They will be forced to either match the offer or pull out. Critical to the success of the program will be list of merchants joining up. Having the ability to give an immediate cash back reward will certainly push Barclay to the top. Nevertheless, experts are warning UK residents to remain cautious when considering any card program. Cardholders should consider all the pros and cons of any card prior to accepting credit. For customers who pay their balance in full each month, the program is sure to be a winner.