Difference Between Retail Reward Credit Cards And Store Cards

If you are someone who likes to shop and has a clutch of different cards, deciding which one to use for what can sometimes be quite a problem. The only way to be sure you are getting the best deal and using the best payment card is to understand what each card is, and how it works.

The same goes if you are just looking to get a new card. Once you know what you will use it for you can decide which card is best, but only if you know the key differences between them.

All Cards Are Not The Same

It can be too easy to think that just because two cards are the same size and shape, go in the same slot, and even have the same symbols on the front that they are basically the same. That is not so. Consider for example the difference between retail reward credit cards and store cards.

The most obvious difference between retail reward credit cards and store cards is that the majority of store cards can only be used in the issuing store.

Although the benefits may appear to be good and you shop in that store a lot, why give up the freedom to shop anywhere, for anything that you can get with a retail reward card. Don’t let the word ‚Äòretail’ fool you. These cards can be used for anything and anywhere a true credit card would be accepted.

Most of this type of card will give a preferred rate of reward points at specific locations or for particular items, but you still get something wherever you shop.

Interest Rates

The next major difference between retail reward credit cards and store cards is the interest rates. If you pay the balances off in good time this may not affect you, but store cards have notoriously high rates if you leave a balance outstanding on the card. Retail reward cards are usually charging a similar rate to most normal credit cards.

You can’t get cash out with store cards. Although you may not want to use either of these cards for ATM withdrawals, at least in an emergency a retail reward card gives you this option.

Flexibility

You need to check the literature to see exactly what discounts and rewards you might receive on the two cards, but store cards will only offer you rewards that can be spent in their stores, so you have much less flexibility and may end up not wanting to use the points you have.

Although the retail reward card may not give you exactly the rewards you want, they will be a lot more flexible and varied than a store card can ever be.