Let’s Compare Credit Card Rewards Programmes
Comparing credit card rewards programmes
If there is one fact, that is apparent, South African consumers must become credit card savvy before applying to any particular bank. Banks vie for business using credit card rewards programmes as the lure. Banks often market credit cards using credit card rewards programmes as the bait.
However, each financial institution offers different incentives and we would advise consumers to be studious in their homework to avoid pitfalls.
Compare bank offerings
- Absa’s rewards programme offers a 1% cash return on debit and credit card purchases, 5% on fuel purchased from Sasol service stations and up to 10% for purchases at selected retailers. Gold card holders pay between 16% and 22% on debit balances and receive 0.20% on credit balances.
- Nedbank’s Greenbacks reward programme gives cardholders one greenback for every R5 spent. These rewards can be spent on Nedbank investment products, travel offers or purchases of selected products. Gold card holders pay 18.4% on debit balances and receive 0.25% on credit balances.
- One of South Africa’s best-known rewards programs if offered by FNB and RMB Private Bank. With their eBucks rewards, consumers can earn up to 3% cash back on purchases when swiping their credit cards. They can also receive up to 15% on fuel, prepaid electricity and airtime bought through FNB, as well as up to 15% when shopping at Checkers and Shoprite supermarkets. Link credit cards to an FNB current account to qualify for the eBucks Rewards programme. FNB gold card holders in debt will pay according to their risk profile. They receive 0.25% on credit balances.
- With Standard Bank’s UCount Rewards programme, consumers can receive up to 10% in rewards points on grocery purchases, 5% when shopping at specified retailers such as Makro and Clicks and fuel rewards of 1.5% when filling up at Caltex service stations. Ten Rewards points earn card holders R1. Gold card holders pay 19.5% on debit balances and receive 0.20% on credit balances.
More Bank Offerings:
- Discovery has two rewards programmes. Vitality members automatically qualify for discounts at selected retailers such as Pick n Pay, Woolworths, Cape Union Mart, Exclusive Books and Builders Warehouse. Card holders can also join the Discovery Miles programme that earns one Discovery Mile for every R12 spent. One can redeem these rewards on Kulula, through the online Discovery Mall and can then convert these rewards to Voyager and Avios Miles. Discovery Gold card holders pay between 19.8% and 22.10% on debit balances and receive 0.25% on credit balances.
- One of the most uncomplicated offerings is from Virgin Money. Its VIP loyalty programme offers cardholders instant discounts of up to 10% when shopping at selected retailers. Card holders pay between 14% and 18% on debit balances and receive 0.25% on credit balances.
Consumers are reminded that while rewards programmes may sound alluring, they are only really effective if credit cards are used on a regular basis for shopping transactions.
Also, it is imperative to remember that you should pay monthly credit card bills in full and on time.
It is only then that they will reap the real benefits of rewards programmes.
All info was correct at time of publishing