As Good as Cash

Credit card issuers try to entice us to choose theirs over the competitors by offering up points and rewards for every transaction we execute. The points, they will remind us, are just like cash.

And for many of us, that usually means accumulating them more than using them…until something changes. And that ‘something’ was the COVID pandemic.

Redeeming points became a thing during the lockdown.

CIBC reports redemption of points on their Aventura card went up 72-percent since March. And, even though they promote the card as one directed towards people looking for travel points, it was home improvement goods that drew the most attention. It was the Electronics, House and Home Improvement categories that saw the 72-percent hike. Clearly the trend towards people investing in their Stay-Cation property showed up here too as only eight-percent of the points were directed towards gift cards for groceries.

So paying for necessities like food was not big on the list, playing second fiddle to upgrading things around the house without having to make a dint in the checking account.

Source:

http://cibc.mediaroom.com/2020-08-06-Redemption-of-credit-card-reward-points-for-everyday-purchases-surges-during-pandemic