How have you been rewarded by companies that value you as a customer? Did you get a free cooler for opening a checking account at your local bank? What about a complimentary mug from your insurance company? If you have accumulated a closet full of freebies you don’t want then I have some good news. Now you may be able to pick out your own “prize” for being a new customer.
Some businesses are offering promotional “rewards” that actually do more than just collect dust. For example, where I live a local cable company is rewarding customers for upgrading their cable packages with “rebate cards.” The cards replace traditional rebate checks. They look like a typical debit card and come loaded with a specific amount of money. In the case of our local cable company the amount ranges from $25 to $50. It’s basically like having cash in your hands instead of a coffee mug.
Financial experts say the branded, prepaid cards are the hottest new way to give out rebates. In the financial world, they’re called “the open loop.” An open loop card works like this: the card has the brand of Visa, Mastercard, American Express, or Discover on it; the company issuing the card places a specific amount of money on it and distributes it to loyal customers. The recipient is then allowed to redeem the cards at merchants all around the world that accept them.
The cards come with some pros and cons. The good news: they carry the same protections as traditional debit or credit cards. The bad news: the cards tend to expire quickly.
Want to get your hands on one without having to open a new checking account or changing insurance companies? Here’s how: Inquire about them at your local car dealership. You may be able to earn one after test-driving a vehicle. Other companies plan to put them in cereal boxes and detergents. And be careful before tossing out extraneous DVD filler—there might be a card inside for you to use.
Some companies require you to complete paperwork, which asks for personal information prior to issuing you a prepaid rebate card. Financial experts say you don’t need to worry about information such as your address or phone number being handed over to a third party—under federal law, companies aren’t allowed to do so unless you give them approval.
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