A report in Dallas claims that dominant retail chains and credit cards issuers are in the process of improving their reward programs to encourage their clients to have credit with them.

David Robertson, publisher of the credit card industry publication “The Nelson Report”, says that all the big chains have discount deals. This, he adds that are helped by recession improvement and retailers are attracting customers through discount.

For instance, Target stores through its cards, REDcard debit and credit accounts, are offering to their customers 5% on all purchases, and Toys Us are to increase to 10% on a purchase of $500 for loyalty. Other company’s in the business like Chase Freedom cards are offering 5% on all purchases in department stores, supermarkets and movie theaters, up to $ 1,500 to December 31.

The market has even led to mergers to remain relevant in the competitive market. U.S Bank and supermarket Kroger have merged and announced a new program, 1-2-3 Rewards MasterCard or other store-braded or debit accounts. This will lead to their customers earning points whenever they shop at the supermarket and be allowed to redeem them for free groceries.

Kroger, and its subsidiaries are offering double points on purchases made using credit cards at their location, and a further three points for selected articles, the report added.

The increase in the usage of credit cards and new offers has not led to popularity of existing programs, including airlines, another report by Reuters claimed. This is usually used by high-income consumers to earn points for every for dollars they spent and compile miles, upgrading their flights and perks.

Consumers enroll in the program to earn rewards but are advised to do a good research on which program is providing the best offers in terms of value per dollar basis.

Image Credit: