What Is a Rebate Card?
A rebate card is a debit card loaded with a specific dollar amount and issued by a company as a rebate--a partial refund of the original purchase price--for a purchase at a later date. Don't confuse it with a credit card that offers rebates.
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Using a Rebate Card
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Rebate cards are treated as credit cards--not debit cards--at the register. They do not use PINs, and they are accepted wherever the credit card issuer (Visa, etc.) is accepted.
Exchanging for Other Tender
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Some companies will deactivate the rebate card and issue a check upon request. Banks will pay cash for the card.
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Common Complaints
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Buyers beware: There are two big complaints often associated with rebate cards. The first is that when making a purchase, the cardholder must know the exact amount on the card, or it may be declined. The second is that some cardholders find that vendors withhold more money than is spent to ensure payment.
Tips
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Check for an expiration date. Some cards may charge a fee after three months. Know the amount on the card and use it immediately for the full amount to best avoid problems and frustration. If you use the card at a gas pump, you will be required to go in to the cashier for confirmation of payment.
Why Do Retailers Offer Rebates?
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The balance on the card is in the retailer's account--not yours--until you use it. If you don't use it, you lose it and the retailer gets to keep it.
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References
Resources
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