Opinion: Issuers Must Play Their Cards Right as Customers are Willing to Switch for Premium Perks

Americans are reeling as they try to figure out what the new Trump Tariffs will mean for their financial wellness. Stocks tumbled in the days after the president revealed the details of his tariff plan, putting investors on edge.  

Billionaire Mark Cuban made headlines telling people to stock up on consumer goods before price hikes kick in. 

In the short term, if consumers take Mr. Cuban’s advice, that could lead to some panic buying at places like Walmart. 

But after we move through the knee-jerk buying phase, consumers may take a step back and start thinking about a longer-term approach to managing economic uncertainty. 

That could mean buying less, holding on to cash, and working to build up emergency funds as they pay down debt. But let’s face it: Americans still need to buy stuff. 

And they still want to go places and live their best life. 

While American wallets have been hit by inflation and tariffs, the points and perks consumers earn on their credit cards has been less impacted, though it’s true the purchasing power of points has been reduced by inflation.

Credit card points and rewards can cost money if consumers don’t pay their bills in full, or if they pay annual fees for their credit cards. But the reality is people don’t seem to mind. 

Although they are tied to consumer activity, points are still perceived by most consumers as “free.” Spending them doesn’t feel like we are spending real money. And yet, we can get real stuff from them. 

Americans can now cash in points for just about anything, including gift cards to places where we can buy everyday basics, including our beloved and high-priced eggs. 

But what Americans really covet is those travel perks. 

While we are past the Covid-19 epidemic, the cultural changes remain front and center. Today’s travelers don’t want to compromise when it comes to their travel experiences. 

Social media influencers’ sway remains as powerful as ever, and the quest for the perfect Instagram shot is still very real. 

Inflation be damned, Americans still want to be extra when it comes to their adventures. Paying for it becomes a question of finding a way to avoid downsizing those travel expectations. 

In other words, perks are a must and brand loyalty is just not a thing that matters all that much. 

Remember that famous line in the movie “Jerry Maguire”? Cuba Gooding’s character, football player Rod Tidwell screams at his agent played by Tom Cruise  “Show me the money!” 

There was no loyalty to his agent, or to a team. It was just about what was in it for him. That sentiment appears to be true when it comes to credit card loyalty as well.

Research reveals that 92% of credit card holders would switch cards for premium travel perks. In other words consumers are saying to credit card issuers: Show me the travel perks! 

Loyalty is out and consumers are following the perks. 

That’s both a green light and a red flag for card issuers. Issuers who can grab consumers attention can absolutely gain ground by tapping into their desire to maintain the experiences-driven lifestyle so many Americans have made an integral part of their life. 

Customers expect to be rewarded for their loyalty with rewards that matter to them and will help them maintain the lifestyle they have come to enjoy. 

They might cut back or put off buying cheap stuff that comes from overseas, but they will do everything they can to draw a line in the sand when it comes to their love of fabulous experiences. 

For that reason, the volatile markets and uncertain trade environment will only elevate the focus on points and perks as a desired currency. 

Complacency is out, and opportunistic behaviour is in. Card issuers need to step up their game if they want to attract and retain their best consumers.