Just recently got through a Best Buy reward's card debacle in an honest attempt to be frugal. Started in November when I bought the Switch SSBU LE bundle, I signed up for the rewards card because I figured the 10% store credit out of 380$ would be enough to buy at least half a game.
So life takes over, and I only get around to using my credit until last week, which is fine because the salesman says my account stays active... and I come to see that there is no credit. Turns out I get the full story after trying to complete a new purchase-- truth #1: the card only offers 10% back in rewards. So instead of store credit, you get 10% back in their contrived rewards point program which go towards your next purchase, creating a token economy where you end up spending more and more to save something very minuscule, say 5$ after 500 points. The only reason I came back was due to sunken cost, wanting to use up the credit, only to find it really did not cover as much as (apparently) advertised.
Truth #2: if you do not use your points in a span of time, they expire, creating a sense of urgency to spend quickly on stuff you likely do not need in order to score more "points" and save money.
I thought this was worth sharing, because on the surface it may seem frugal; constantly pay your credit limit, get free credit and more things. But there are these systems in place that play on your psychology that actually encourage you to spend more money and defeat the purpose of trying to save money.
The rewards programs may make sense for someone who frequents a place very often, spending large amounts of money. Going in understanding the systems at play can help consumers make more informed decisions and understand that these cards are not without their risks.
May 18, 2019 at 12:19PM
