Determining which prepaid reward card to use can be a difficult decision because many factors come into play. Recordnet reports that these components include a consumer’s location, if he or she is using the card for business or pleasure, if the person is still in school and overall monthly budget.
Different cards work for different people based on these spending patterns. For example, some cards offer varying rewards for gas and grocery purchases. Capital One’s No Hassle Cash Rewards card provides 2 percent cash back for both expenses, while the BankAmericard Cash Rewards Visa Signature Card grants 2 percent for groceries and 3 percent on gas.
If a person is using a credit card for business purposes, they’ll likely begin to receive the option of more prepaid rewards. Debtmerica Relief reports that due to increased competition among credit card issuers to lure small business owners into opening an account, lenders have begun offering more perks to ease the burden of the higher interests rates associated with the cards.
The news source notes that American Express and Capital One Financial have already experimented with accounts that offer straight cash back or provide owners with lower interest rates based on business location.