Question

A credit card company wants to market a new scheme for its clients, offering them 5% of their yearly spending as a cash gift at the end of the year. How should the company refer to this rebate, and why?

Answer 1

Basically any offer by any bank is to attract customers and make them as their clients. Here in this case the bank is telling that it offers a 5% of the yearly spending of the client as cash gift at the end of the year. But it is not necessary that the gift needs to be given in physical form of money to the client's hands.

Here the bank should give that 5% gift to its clients. But at the same time the bank should not get into losses because of that offer. Basically the credit card meant to provide money for credit but not like savings to withdraw from an ATM. So now the bank can offer that 5% gift as eligible amount to withdraw from an ATM like withdrawing from debit card. This will be a win-win situation for the clients as well as for the bank.