Today’s credit card rewards programs strive to appeal to themodern-day consumer, but their roots go all the way back to thelate 1800s. Founded in 1896 by Thomas Sperry and Shelly Hutchinson,S&H Green Stamps was one of the firstretail loyalty programs in the United States. Merchants bought thestamps and distributed them to customers based on the amount oftheir purchases.

Although the S&H catalog is a distant memory, customerloyalty programs remain popular – and competitive. Today, industryestimates report that more than three out of five credit cards issued in theU.S. are linked to rewards programs. For credit unions andfinancial institutions considering a card loyalty program, it’suseful to know the factors driving consumer engagement with cardreward programs and how cashback compares to loyalty points interms of their preference.

Vantiv and Socratic Technologies recentlyteamed up to survey 500 consumers about card rewardsprograms. The survey uncovered the following: