Consumer Payment Card News

GM REDEEMS ONE MILLION REBATES

SUMMARY:
The General Motors MasterCard passed the one millionth redemption last week as a California woman traded a Nissan 280SX and approximately $350 in GM card earnings toward the purchase of a 1997 Pontiac Grand Prix. GM officials confirmed Friday that approximately 10% of all GM retail sales involve a GM card earnings redemption. Beginning this morning GM will run a one-week print and television advertising campaign to commemorate the redemption milestone. Household Bank currently services about 8 million GM card accounts. According to latest figures the average GM card redemption for 1995 was $690. During 1995 GM amassed a redemption liability of $2.5 billion while redeeming about $300 million.

FULL STORY:
Since setting industry records with the most successful credit card launch in history just four years ago, GM MasterCard earnings have been redeemed toward the purchase or lease of more than one million new General Motors cars and trucks – a milestone unmatched by any automotive credit card in history. Today, approximately ten percent of all General Motors retail sales involve a GM Card earnings redemption.

In recognition of the achievement, The GM Card awarded a package of gifts from Accelerated Earnings Network partners GM Vacations, Mobil Corporation, MCI and Marriott Hotels, Resorts and Suites tot he designated one-millonth redeemer — a California woman who traded a Nissan 280SX and approximately $350 in GM Card Earnings toward the purchase of a 1997 Pontiac Grand Prix.

“Credit card customers have become very savvy consumers over the last few years, and they recognize The GM Card is a program which provides tremendous value,” said Hank Wood, managing director, GM Card Operations. “This milestone proves we are striking an appropriate balance between providing consumers a highly desirable reward credit card while establishing long-term loyalty resulting in the sale of General Motors cars and trucks.”

To commemorate surpassing the one-millionth redemption milestone, The GM Card will introduce a one-week print and television advertising campaign to begin running nationally on October 21, 1996. The campaign will highlight both the one-millionth redemption milestone, as well as The GM Card’s recent number on ranking amongst reward credit cards in overall customer satisfaction by an independent survey conducted by J.D. Power & Associates.

“Although the reward credit card industry has experienced enormous growth over the past few years, very few programs have yielded the sustained success of The GM Card,” said Weed. “We see it as a testimony to the simplicity of the program, our dedication to customer service, the high value of the five percent earnings feature and the highly desirable end benefit of the program — substantial savings toward the purchase or lease of a new General Motors car or truck.”

The GM Card is a MasterCard with no annual fee and a variable APR. Its autombile earnings program allows cardmembers to accumulate five percent from GM Card transactions toward the purchase of lease of a new car or truck from Chevrolet, Geo, Pontiac, Buick, Oldsmobile, Cadillac or GMC. GM Card earnings can add up to a maximum of $500 per year, $3,500 over seven years.

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