Rebate card
Encyclopedia
A rebate card is a debit card
that provides funds promised by a business as a rebate
. They are often offered to those who make a specific purchase, or for loyalty to a company
by accumulating a certain amount of money or number of points worth of purchases from a particular company.
While some rebate cards are valid anywhere where a major credit card
is accepted, others can be used at a more limited number of locations, such as certain companies, business types, or localities, or at participating retailers.
. A purchase for less than the amount remaining can be made with the card, but a purchase for even one penny above this amount will be declined. Very few stores will allow split-tender transactions (transactions in which the rebate card is used for part of the purchase, and some other form of payment for the remainder. Due to the likelihood of a purchase being equal to the remaining amount being so low, most consumers do not get every penny that can be found on a rebate card, and the companies offering them pocket the remainder.
Rebate cards often have expiration dates, allowing very little time for consumers to use them. Some deduct a certain amount from the card as time passes during their life.
To combat these problems, critics recommend consumers exchange their rebate cards on websites like Cardpool, eBay, or Craigslist, where consumers can receive cash or cash equivalents for their rebate cards.
Debit card
A debit card is a plastic card that provides the cardholder electronic access to his or her bank account/s at a financial institution...
that provides funds promised by a business as a rebate
Rebate (marketing)
A rebate is an amount paid by way of reduction, return, or refund on what has already been paid or contributed. It is a type of sales promotion marketers use primarily as incentives or supplements to product sales. The mail-in rebate is the most common...
. They are often offered to those who make a specific purchase, or for loyalty to a company
Loyalty marketing
Loyalty marketing is an approach to marketing, based on strategic management, in which a company focuses on growing and retaining existing customers through incentives...
by accumulating a certain amount of money or number of points worth of purchases from a particular company.
While some rebate cards are valid anywhere where a major credit card
Credit card
A credit card is a small plastic card issued to users as a system of payment. It allows its holder to buy goods and services based on the holder's promise to pay for these goods and services...
is accepted, others can be used at a more limited number of locations, such as certain companies, business types, or localities, or at participating retailers.
Criticism of rebate cards
Rebate cards have been criticized for not offering consumers the full amount of their value. With many of them, it is impossible to know exactly how much is remaining on the card at the point of salePoint of sale
Point of sale or checkout is the location where a transaction occurs...
. A purchase for less than the amount remaining can be made with the card, but a purchase for even one penny above this amount will be declined. Very few stores will allow split-tender transactions (transactions in which the rebate card is used for part of the purchase, and some other form of payment for the remainder. Due to the likelihood of a purchase being equal to the remaining amount being so low, most consumers do not get every penny that can be found on a rebate card, and the companies offering them pocket the remainder.
Rebate cards often have expiration dates, allowing very little time for consumers to use them. Some deduct a certain amount from the card as time passes during their life.
To combat these problems, critics recommend consumers exchange their rebate cards on websites like Cardpool, eBay, or Craigslist, where consumers can receive cash or cash equivalents for their rebate cards.
See also
- Gift cardGift cardA gift card is a restricted monetary equivalent or scrip that is issued byretailers or banks to be used as an alternative to a non-monetary gift....
- Entrust BankcardEntrust BankcardEntrust Bankcard is a payment processing company based in Phoenix, Arizona in the United States. Founded in 2006, Entrust Bankcard was listed at #18 on Inc.'s 2011 "Inc. 500" of the 500 fastest growing companies in America. Entrust Bankcard provides point of sale, online gateway and wireless...
- Loyalty programLoyalty programLoyalty programs are structured marketing efforts that reward, and therefore encourage, loyal buying behavior — behavior which is potentially beneficial to the firm....
- Frequent-flyer program
- Bait and switchBait and switchBait-and-switch is a form of fraud, most commonly used in retail sales but also applicable to other contexts. First, customers are "baited" by advertising for a product or service at a low price; second, the customers discover that the advertised good is not available and are "switched" to a...