Credit card issuers can offer up to six promotions on their cards to boost credit card satisfaction, but a new research study suggests they’re not the best way to promote credit card issuments.
Credit card issuer issuers that offer six promotions are typically charged a 2.5 percent markup on purchases for every promotion offered, and they may also be required to offer a promotional rebate program for those promotions, according to a new study from Credit Card Market Intelligence, a research firm.
Credit cards with promotions that offer up a 2 percent discount on purchases are generally more attractive than those that don’t, according the study.
CreditCard Market Intelligence analyzed data from more than 3,000 credit card promotional offers offered by companies like MasterCard, Discover, American Express, and Visa.
Creditcard promotional offers offer cards that had a 3.5-percent markup on purchase prices.
The average promotional offer for credit card promotions was 2.8 percent, the study found.
Credit Card Market Analytics found that the top five promotions offered on credit card cards with promotion plans were:Ameritrite, the nation’s largest issuer of personal loans, offers a 3 percent discount off of purchase prices on its Discover credit cards.
Citi, the largest issuer in the U.S., offers a 2-percent coupon on a 2% discount off purchase prices for its MasterCard credit cards, and it offers a 5 percent bonus on a 1-percent discount off purchases on its Visa cards.
Capital One offers a coupon on purchases of $50,000 or more for a 3-percent cashback on purchases.
American Express offers a 15-percent bonus on purchases totaling $1,000,000 for a 1.5% cashback, a 1 percent bonus for $1 million, and a 1% bonus for up to $5 million.
And the Visa card offers a 4-percent fee discount on every purchase, and up to a 15 percent cashback bonus on $2,000 purchases.
These companies typically offer promotions for six to 12 months, with the full 12-month offer ending after one year, the report found.
In the case of Visa, for example, the company offered three promotional offers: one for $100 in cash and $100 cashback at participating retailers; a $100 bonus on the purchase of a $50 million mortgage, and an annual cashback for life of $1.25 million.
Capital one offers a 10-percent promotion on all purchases.
Citibank offers a $10 cashback coupon, a 10 percent cash back for the purchase and renewal of a credit card, and $25 cashback when the customer pays the balance in full within two years of the credit card’s purchase date.
American Airlines offers a 1 percentage cashback off purchases totaling up to 3,500 miles, and two cashback offers on the $1-million purchase.
Coca-Cola offers a free cashback offer for the first $100 of every purchase on every American Express and Visa card.
American Express offers the same $10 credit card offer.
Cotex offers a 6 percent cash-back on every dollar spent on purchases and an 18 percent cash rebate on all other purchases.
Visa offers a cash-refund coupon for $2 million of the purchase price.
American and American Express offer the same offers.