I have a few cards that have no rewards. When the companies want to change the terms, they just send one of those small booklets and then change them.

Now for adding rewards, they all seem to want me to opt in. I don't get it. What am I missing? Why would they send me emails each month wanting me to opt in with one click so they can give me 5% back on purchases I make with the exact same card I already have?

I keep wondering if there's some sucker clause buried in the fine print.

Same reason you have to print, copy, assemble, hold your mouth just right and wait 10 weeks after mailing in a rebate form. The frequency of non-compliance or not making the election reduces the cost of the program.

Many years ago, talking with customer service at Verizon, I was informed I was basically paying the highest possible rate for my home phone. The reason? I hadn't asked for a lower rate.

quote:

Originally posted by cas:
Many years ago, talking with customer service at Verizon, I was informed I was basically paying the highest possible rate for my home phone. The reason? I hadn't asked for a lower rate.

That's certainly a way to piss your long time customers.

OP, because if the credit card company just send you an email what the special is this month, you probably won't remember it. But if you do click on something to activate it, you remember it more plus you feel like you invested something into the process and you will, at least, use that card when you're buying the special reward of the month.

Meh. I have 2 debit cards, one of which is used for most ordinary purchases and the other just for trips and tours. I don't get any feedback from either one and don't care.

flashguy

It's a game of attrition.

They probably don't really want to give those benefits to anyone, so various barriers are implemented to dissuade, discourage, and otherwise increase the number of people who give up, just like how phone queues are often designed and coupon rules and the rest.

They're doing their best to offer it and reap whatever benefits they can from that, and also keep it from happening as much as possible, and also not break the law or drive away too many customers, all at the same time.

I think the answer is much simpler...

It's just data collection. The credit card company wants the data that shows that they are able to drive a certain amount of sales as a result of their promotional efforts.

quote:

Originally posted by Aeteocles:
It's just data collection.

And marketing. You get 'rewards' and increased rewards for patronizing specific vendors, some on a rotating basis. Your purchasing patterns are released to a wider group of market researchers, a right you sign away in the increasingly fine small print of their agreements.

They definitely want you to get those rewards. I had to spend $10k in five months on my newest Amex Card to get the 60k membership rewards points. I don't know how much Amex made in merchant fees off that $10k, but they are in the business of getting paid merchant fees, so they want cardholders to feel invested and use their cards. Getting cardholders to call in or go online and choose from a list of benefits is a great way to get them to see other deals and offers that would be ignored if put on a flyer and mailed. What company doesn't want more website traffic and especially if it requires a login?

Rebate processing is totally different. Once you send in the claim, it can take a while to process it, verify it, then cut the check or print the gift card and mail it. And the companies that offer them definitely want you to redeem the coupon or rebate or whatever the incentive is. They've already accounted for the cost and they're not in business to lose money. Getting customers engaged, visiting the company's website to submit the claim, etc. is just what they want.