Consumers ripped off by credit card loyalty programs

Credit card reward programs have been around for a while, but do consumers actually benefit form them? According to consumer watchdog Choice, no they don’t.

A recent study conducted by Choice found that the credit card industry offers little reward to consumers who spend less than $2000 a month on their card, with many actually paying more in fees than they get in rewards.

The study, which looked at frequent flyer points, shopping vouchers and cash rewards found that consumers would need to spend at least $6600 to earn enough points for a $50 toaster.

Choice spokesperson Christopher Zinn said that the rewards are minimal compared to the amount of money consumers must spend in order to receive them.

“You need to spend at least $2000 a month on a reward card to get any sort of decent return once you have taken in the average fee.”

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