Credit card reward schemes dropping

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The number of credit cards offering rewards to consumers has fallen by 11% in the past 12 months, research by Sainsbury’s Finance has discovered.

In 2008, 78% of credit cards on the market offered a rewards scheme.

This figure has now dropped to 11%.

The rewards on offer have also changed, Sainsbury’s found, with air miles and loyalty points replacing cashback deals and shopping vouchers.

Over half (54%) of customers are cashing in their credit cards rewards, compared with just 23% a year ago.

Credit card holders who fail to redeem their rewards say its because the financial incentive is too low, or the redemption process is too complicated.

a�?The recession has made a lot of people reassess their finances and ita��s great to see that people are starting to make the most of the rewards on offer via their credit cards,a�? said Craig Hunter of Sainsburya��s Credit Cards.

a�?The credit card industry still has a lot of work to do however, as 46 per cent of people still say that they havena��t reclaimed the rewards theya��ve earned in the past year, often because of their view of the scheme they have.

a�?There is no point offering reward schemes if there is no perceived value or if it is too difficult to redeem the rewards.”

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