Industry News

15/03/2010 - With the recession just now beginning to lift, credit card companies are looking for ways to encourage credit card processing activity and customer loyalty, and as a result are ramping up their rewards programs.

CNN reported that, given the recent hikes in interest rates and fees that many customers experienced, card companies are looking to boost their trust and loyalty rates, and as a result are focusing on their rewards programs.

For example, JP Morgan Chase is increasing its miles-to-dollar ratio on its British Airways cards as well as increasing the rewards offerings for its Marriot cards. In addition, the company increased the rewards points on its Chase Freedom card from 3 to 5 percent of purchase amounts in many categories.

Another company upping its rewards is Citibank, which also increased its miles-to-dollars ratio for American Airlines cards.

CNN noted that card companies are focusing on rewards because it builds loyalty, because those using rewards cards are typically unlikely to default, and because it encourages credit card processing activity - which then brings in more money from interchange fees.

For businesses whose merchant services include credit card processing, an uptick in sales may soon be seen as customers try to take advantage of earning rewards points. For businesses without credit card processing abilities, now is a better time than ever to consult a merchant account provider.