25% of Shoppers Rotate Cards; Custom Offers Can Win Them

A new study reveals that 1 out of 4 credit card users strategize when shopping, rotating cards to pay with the one that most enhances the rewards they can earn, according to a report from PYMNTS Intelligence. 

With a quarter of shoppers open to switching cards for different transactions, credit card issuers who meet a cardholder’s needs with a personalized offer can stand out in a consumer’s crowded wallet. 

Customizing offers to align with individual cardholder preferences may sound like a tall order, especially for companies that have millions of credit cards in circulation. But issuers can use technology-driven solutions to help them meet the task.

“Whether issuers focus on entry-level cards, premium ones, or both, they have a powerful new tool: Recent advancements in data analytics give them the ability to design offers and rewards that are more predictive of future spending patterns, thus making a certain card more likely to be used,” the report’s authors wrote.

Issuers can examine highly detailed data, such as purchase category, the date and time of a purchase, and the location of a transaction, to customize rewards offerings to individual cardholders. 

For example, a credit card issuer or a retailer who offers a loyalty card program can use item-level data to offer enhanced rewards on future coffee purchases to cardholders who use their card to purchase coffee on their way to work each day.

The PYMNTS Intelligence study used a survey of more than 3,000 U.S. consumers to inform its findings. The results indicated that 43% of respondents own either a store card or a co-branded card.

Baby boomers and members of Generation X use store or co-branded cards more than younger generations.

But store cards and co-branded cards have room for improvement when it comes to rewards, according to survey data.

More than 59% of respondents said they want those cards to include better rewards or cash back programs.

And nearly half of respondents said they want store and co-branded credit cards to allow them to accumulate loyalty points faster.

Deeper discounts on purchases, free shipping and extended warranty programs, and personalized benefits are among the improvements cardholders say they would like in store and co-branded cards.

Consumers have been using more revolving credit lately. Recent data from the Federal Reserve shows that consumer revolving credit grew at an annual rate of 7% in April, the highest monthly rate on record thus far in 2025.

With consumers turning to revolving credit to fund more of their purchases, now may be an ideal time for credit card issuers to capture a larger share of cardholder spend.

The PYMNTS Intelligence report found that nearly 60% of cardholders own no or low-fee entry-level rewards credit cards. But issuers may have more success in motivating cardholders who own premium cards to take advantage of card-linked offers.

Card-linked offers allow consumers to earn rewards by connecting their cards to apps or websites they frequent to make purchases. The cardholder receives the rewards when they use their linked card to complete the transaction.

Nearly 6 out of 10 cardholders own entry-level credit cards with minimal or no annual fees.

Those who own credit cards with annual fees of more than $100 are more than twice as likely to enroll in card-linked offers than cardholders who use cards without an annual fee, according to PYMNTS Intelligence findings. 

Issuers should consider updating rewards programs to align with cardholder preferences regardless of whether they target premium card users or those who own basic, no-fee cards.

“Cards with robust rewards systems get recommended more often to cardholders’ friends and family,” the authors of the PYMNTS Intelligence report concluded. “Money spent on referral systems could be put to better use enhancing existing rewards programs that boost cardholder satisfaction and encourage recommendations.”