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Industry News

'Retirement rewards' programs add to the ranks of unique credit card processing incentives

By Kristen Lawrence

20/01/2010 - The credit card processing industry has been slowly losing ground to the debit card industry, thanks to a recessionary focus on having more control over finances and avoiding debt. However, the credit card processing industry is not going down without a fight, and credit card companies are unveiling innovative new rewards programs to try to lure consumers back to credit card spending.

One new offering that has recently gained popularity actually aims to capitalize on the saving and financial conservatism trends that have dominated the past year - "retirement rewards."

The Wall Street Journal reported that some credit cards now allow consumers to redeem their points for cash deposited into individual retirement accounts or other investment accounts.

"These [cards] offer a way to make consistent contributions to a retirement account without having to think about it, which is always a good thing," Doug Miller, a senior analyst at financial services consulting firm Corporate Insight, told the Journal.

Some cards offering this service include the Fidelity Investments Retirement Rewards card through American Express and the Ameriprise Financial MasterCard, the Journal reported.

Other unique credit card rewards that have cropped up recently include an American Express program that allows cardholders to redeem their points for tax payments. ADNFCR-2514-ID-19568177-ADNFCR

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