Released: June 07, 2007

Rewards cards can have problems

Source: Eileen Alt Powell, Associated Press [Wilmington Star]

Credit cards that offer rewards are increasingly popular, from gas company cards that give cash back to airline cards that award free tickets and retail cards that provide discounts on clothes.

But as they proliferate, so do the possible problems. The cards often carry hefty annual fees and complicated rules that make it hard for consumers to claim their bonuses. And there’s nothing that prevents card issuers or loyalty program sponsors from changing the rules at any time to make it harder for participants to claim a prize.

“You really have to look at whether the reward is something you want and worth what you’re investing,” said Robert McKinley, chief executive of CardTrak.com, an online publisher of information about payment cards.

For starters, most rewards cards have an annual fee - and the better the rewards, the higher the fee, McKinley said.

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