Clipping of news on Brazilian Culture, Law and Citizenship
09/29/2016
This article was translated by an automatic translation system, and was therefore not reviewed by people.
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With interest in the 470% credit card a year, impulse shopping to gain benefits can be expensive and nullify the advantages offered
Loyalty programs have multiplied in the Brazilian market and are already part of the user routine. Today there are over 72 million registered in the five largest companies, according to the Brazilian Association of Loyalty Market Companies (Abemf).
The opportunity to buy, earn points and be compensated with other products or services is interesting: consumers gain in times of economic distress and companies try to build customer loyalty. But like everything that relates to the consumer, you need to take some care to use good programs.
Carolina Ruhman Sandler, an expert on financial education and founder of the website Women Finance, gives some tips for consumers not to curl financially or get lost in the various points accumulated. "It is important to consume carefully, especially in times of economic crisis. Loyalty programs involve a basic consumer relationship: the more you consume, the more points accumulated. So it is good not to get carried away, "he recommended.
Sandler recalls that one must be careful not to get complicated with the amounts to be paid. "The rate of credit card interest, for example, certainly will not make up the points accumulated in the program. close attention to avoid debt default and is necessary: financial control should always be the main consumer concern. "
A specialist in financial education notes that credit card interest rates are at 470% per year, according to Central Bank (BC). "If the consumer creates the justification always buy with a credit card to earn miles, for example, it may pay a high price. The credit card is a 'weapon' dangerous for those who can not spend, "he says.
In the case of miles, Sandler also points out that consumers should be aware that sometimes gets carried away on purchases on credit to earn miles and in some cases it may be that consumers do not enjoy the miles just exhaling. Data from the Brazilian Association of Loyalty Market Companies (Abemf) show that the rate of expired points stood at 16% in the first half of this year. "The consumer is indebted and not just using mileage points," he points out.
For Idec, consumers should check the status of the frequent flyer program or points accumulated on the credit card to redeem the prize before the cancellation. "The rules of mileage programs and points change from company to company, so it is important to read the rules and provisions of the signed contracts."
"It is important to assess whether management fees and, in the case of programs associated with the use of credit card, charged annuity outweigh the benefit offered. credit cards with higher status offer better conditions for the exchange of miles, for example, but the annuity value is also higher. You have to do the math and analyze if the exchange is worth it, "says Sandler.
Help at hand The consumer who participates in the loyalty programs should also be organized. "Keeping track of the validity is a difficult task, but there are applications that can help you. This is the case of Oktoplus, which brings together more than 40 programs, "explains Sandler. The Brazilian Institute of Consumer Protection (Idec) also recommends concentrating all the points in a single program to facilitate control and focus efforts.
According Idec, it is extremely important for consumers to read the subscription agreement before joining the programs. Each has specific restrictions and conditions of use of the points must be understood clearly. It is important, for example, understand whether you can use miles for weekend passes and what is the minimum amount to be accumulated to redeem the benefits. Loyalty programs must comply with the Consumer Protection Code (CDC).
Types of programs Today, there are three types of loyalty programs. Coalition programs are those which bring together a network of partner companies, such as those offered by Dotz and Multiplus, for example. As for the individual programs are offered by the companies themselves and the points are exchanged for branded products or partner. This is the case, for example different banks of programs. There are also cashback sites which allow rescue of the money, as Cashola and Méliuz.
"The cashback programs are always a good choice, but rather to participate in the cash surrender sites, you need to research before the price of direct desired product in the brand site or in the physical store to see if, in fact, there is a promotion. In most cases, the cashback sites are true and also help in building customer loyalty, "he says.
Helpful hints to make good use of your miles
Filie to the programs of airlines operating in
sections for which you would like to travel.
Group your points into a single airline.
Plan to make longer trips with miles. Sometimes a ticket to Rio de Janeiro demand the same number of points a to Belém do Pará, for example.
Before the trip, read the agreement and inquire about the conditions of the period you want to use the miles.
If you want to travel on a holiday or school holidays, send your ticket well in advance.
Stay tuned for promotions. You can get tickets to interesting destinations using fewer miles.
Always check your statement points to know the date
they will expire, as well as the miles were credited or deducted correctly.
Source: State of Minas
To access the site Estado de Minas, click here.
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This article was translated by an automatic translation system, and was therefore not reviewed by people.