Clipping of news on Brazilian Culture, Law and Citizenship
09/09/2016
This article was translated by an automatic translation system, and was therefore not reviewed by people.
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With interest on the credit card at 470% per year, buying impulse to gain benefits can have a high cost and void the advantages offered
State of Minas Gerais
Loyalty programs have multiplied in the Brazilian market and are already part of the consumer routine. Today there are more than 72 million registrations in the five largest companies in the sector, according to data from the Brazilian Association of Companies of the Loyalty Market (Abemf).
The opportunity to buy, earn points and be compensated with other products or services is interesting: consumers gain in times of economic tightening and companies try to retain customers. But like everything else that relates to consumption, you have to take some precautions to use the programs well.
Carolina Ruhman Sandler, a financial education specialist and founder of the Women's Finance website, gives some tips for consumers not to get financially involved or get lost at various points. "It's important to consume carefully, especially in times of economic crisis. Loyalty programs involve a basic consumption ratio: the more you consume, the more points you accumulate. So it's good not to get carried away, "he says.
Sandler reminds us that we must be careful not to get complicated with the amounts to be paid. "The interest rate on the credit card, for example, will certainly not offset the points accumulated in the program. It takes a lot of attention to avoid debt and delinquency: financial control should always be the main concern of the consumer. "
The financial education specialist points out that credit card interest rates are at 470% per year, according to data from the Central Bank (BC). "If the consumer creates the justification of always buying with the credit card to earn miles, for example, he can pay a high price. Credit card is a dangerous 'weapon' for people who do not know how to spend, "he points out.
In the case of miles, Sandler also points out that the consumer should be aware because sometimes one gets excited about credit purchases to earn miles and in some cases it may be that the consumer does not even enjoy the miles that expire. Data from the Brazilian Association of Companies in the Loyalty Market (Abemf) show that the rate of expired points was 16% in the first half of this year. "The consumer is in debt and ends up not even using the mileage points," he says.
For Idec, the consumer should check the status of the mileage program or points accumulated on the credit card in order to redeem the premium before the cancellation. "The rules of mileage programs and points change from company to company, so it is important to read the rules and clauses of the contracts signed."
"It is still important to evaluate if administration fees and, in the case of programs associated with the use of credit card, the annuity charged compensate the benefit offered. Credit cards with higher status offer better conditions for miles, for example, but the value of the annuity is also higher. You have to do the math and see if that trade is worth it, "warns Sandler.
Help in the hand The consumer who participates in loyalty programs must still be organized. "Keeping your eyes on the validities is a difficult task, but there are applications that can help you. This is the case with Oktoplus, which brings together more than 40 programs, "explains Sandler. The Brazilian Institute for Consumer Protection (IDEC) also recommends concentrating all points on a single program to facilitate control and focus efforts.
According to Idec, it is extremely important that the consumer read the membership agreement before joining the programs. Each of them has the specific restrictions and the conditions of use of the points must be understood clearly. It is important, for example, to understand whether it is possible to use miles for weekend passes and what is the minimum amount to accumulate to redeem the benefits. Loyalty programs must also comply with the Consumer Defense Code (CDC).
Types of Programs There are three categories of loyalty programs today. Coalition programs are those that bring together a network of partner companies, such as those offered by Dotz and Multiplus, for example. Individual programs are offered by the companies themselves and the points are exchanged for branded or partner products. This is the case, for example from the programs of various banks. There are also cashback sites, which allow you to redeem some of the money, such as Cashola and Méliuz.
"Cashback programs are always a good thing, but before participating in money-saving sites, you need to first research the price of the desired product directly on the brand site or even the physical store to see if there is, in fact, promotion. In most cases, cashback sites are true and still help customer loyalty, "he says.
Useful tips for making good use of your miles
Join the programs of the airlines that operate in
Sections that you would like to travel to.
Group your points in a single airline.
Schedule yourself to make longer journeys with miles. Sometimes a ticket to Rio de Janeiro demands the same number of points as one to Belém do Pará, for example.
Before the trip, read the contract and inquire about the conditions of the period in which you want to use the miles.
If you plan to travel on a holiday or on school holidays, issue your ticket well in advance.
Stay tuned for promotions. It is possible to get tickets to interesting destinations using only a few miles.
Always check your points statement for the date on
That they will expire, as well as whether the miles have been credited or discounted correctly.
Source: State of Minas Gerais
To access the Estado de Minas website, click here.
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This article was translated by an automatic translation system, and was therefore not reviewed by people.