Cash Back Rewards Preferred Among Canadians

In a recent RBC press release, an RBC poll found showed that 33% of Canadian cardholders prefer cash back to any other type of incentive, compared to merchandise rewards, where 27% of Canadians prefer this, or travel rewards, where 23% of Canadians prefer this type of reward.

Travel and merchandise are popular, however many Canadians want a reward card that gives back cash on everyday purchases noted Sean Amato-Gauci, vice president, RBC Credit Cards.

I would have thought people would prefer to be rewarded with some form of travel or merchandise to cash back. How I look at it, rather than get back a miniscule percent of what I spend, I would want some form of travel reward or merchandise, but getting back some cash is not that bad, however I find it is better used towards people who do not carry a balance on their credit card.

The RBC payment survey was conducted by Ipsos Reid, and found that 58% of Canadians hold a credit card with some form of reward.  88% of credit cardholders say that they pay for their travel with their credit card, and 53% have said that they use it to pay for retail purchases.

There are many cash back credit cards, which can help benefit those who wish to earn cash back rewards. What I find is that to properly make use of a cash back credit card, like any rewards card, you should use it frequently, however you should not carry large balance. You should use your credit card frequently, such as purchasing groceries, gas, etc.

On another note, for those who are interested in cash back rewards, the RBC Cash Back card offers a great feature at the moment. Currently, you can receive 5% cash back on grocery store purchases until December 31^st, 2010. If you do have this credit card, it would be a great idea to start using it for your grocery shopping compared to spending cash or using your debit card. Just remember, that when you use your credit card for everyday purchases you should continuously pay your Visa to maintain a low balance.