Study Shows Fuel Savings Are Favorite Credit Card Reward
A new study shows that consumers prefer gas savings to other types of credit card rewards, including cash back rewards, coupons, frequent flyer miles, hotel points, and coupons.
The Road to Rewards, from the ExcentusInsights series, reports on the results of a survey from July 2015. The survey, which focuses on consumer behavior around credit card reward programs, showed that more than 54% of respondents belong to programs that offer savings on gas.
The finding is not surprising, considering how many people drive their cars every day in the United States. “In a country that’s highly dependent on vehicles for transportation, the ability to save on fuel can serve as a powerful driver of consumer behaviors and preferences,” said Brandon Logsdon, Excentus CEO.
Cash back takes a close second place to gas discounts
After fuel rewards, people preferred cash back. Thirty-seven percent of respondents ranked gas savings as their number-one preference for rewards, and 32% wanted to get cash back. Twenty-five percent preferred to get coupons from their favorite stores, while 24% liked to get instant discounts at the register. Seventeen percent want airline miles, 16% want restaurant or grocery rewards, and 14% like hotel points the best.
Earning rewards and using rewards
Sometimes people don’t use their credit card rewards, whether due to a complicated redemption process or lack of interest in the rewards. But when it comes to fuel rewards, consumers are not only earning them, they are using them. Almost half—46%–of people surveyed said they earn, buy, redeem, or check the status of their gas rewards every day or every week.
Forty-seven percent of folks said they join rewards programs because they like to save money any way they can, and 23% said they want to earn rewards for purchases they make every day.
Gas prices make a difference, but not enough to change preferences
Even when gas prices are lower, people still prefer to get fuel rewards, given the choice. Sixty-seven percent of those surveyed said they pay close attention to the price of gas, and 64% said they want to save on gas when prices rise. That makes sense, but even when gas prices are lower, people still appreciate saving when they fill up their tanks.
Fifty-four percent said they still want to save on gas when fuel prices fall, making gas rewards one of the most popular options for credit card rewards no matter what happens with the price of oil.
Latest Credit Card Rewards News
It has just been announced that Capital One and Walmart are preparing to release their new product – the Capital One Walmart Rewards Credit Card Program. The program will be available on two new co-branded credit cards that are specially designed for customers shopping at Walmart.
If you are lucky to own one of the Discover cashback bonus credit cards i.e. the Discover it® Cash Back, the Discover it® Balance Transfer, the Discover it® Student Cash Back or the NHL® Discover it® credit card, you most probably know that May brings the beginning of activating the 3rd quarter 5% cashback bonus category. But are you hip to the latest news about the categories update?
On April 22 the Canadian direct bank Tangerine Bank introduced an improved sign-up bonus offer for their no-annual fee cash back credit card – the Tangerine Money-Back Credit Card. Founded by ING Group in 1997, Tangerine Bank was acquired by Scotiabank in 2012 and now besides the Mastercard cash back card offers savings and chequing accounts, mutual funds and mortgages.
Capital One cardholders have a great opportunity to get cash for miles earned with the Venture Rewards or the VentureOne Rewards cards. The advertising says: “Just pick up and go.” And in fact, Venture travel rewards cards make it easy to earn unlimited miles and redeem for any recent travel purchase.