Credit card airmiles
Credit card has become a true substitute for cash now and most of the credit card holders prefer to carry a credit card compared to cash. Carrying a credit card will basically reduce the tension of people carrying cash and difficulty in managing the cash. Nowadays most of the purchase transactions happen through credit card and many stores or businesses prefer to have a credit card transaction because of the difficulty in handling cash and depositing the same in the Bank. If it is a credit card transaction, the money is directly transferred to the Bank by the credit card company.
Co-branded Credit cards: Credit card companies make association with various Business organizations to create a credit card to encourage customers to purchase a particular product or service offered by that Business organization. They introduces credit cards, which is called the co-branded credit cards, which will offer benefits to the credit card holder, if he purchases a particular product or service using that co-branded credit card.
Benefits of Co-Branded Credit cards Air Miles: These co-branded credit cards offer benefits in the form of discount, gifts, or accumulation of points or any other Business promotion schemes. Accumulation of points is one of the common benefits that are offered to the co-branded credit cards. It is basically, the credit card holder accumulates points based on the amount of purchase made through the co-branded card for a particular product or service. These points can be later converted to equivalent currencies as defined by the credit card company or any other benefits.
If the co-branded credit card is offered by any Airline company, then the points which the credit card holder accumulates by purchasing the service of that particular airline company is converted to something called Air Miles. The ratio of amount of purchase to the air miles is defined by the credit card company. The number of Air Miles is equivalent to the number of Miles the credit card holder is entitled to travel in that particular airline.
Benefits of Air mile cards: If the customer travels frequently, he can opt for the same airline according to his convenience and utilize the Air mile program offered by the credit card company. Once the points are accumulated, he can make a free travel equivalent by utilizing the Air Miles accumulated or earned by him over a period. The Airline Company also benefits from this co-branded card, by getting more business from the same customer or creates loyal customers so that the customer chooses the same airline, whenever the customer chooses to fly.
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