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Coupons tied to credit card purchases?

By Leslie McFadden · Bankrate.com
Thursday, May 6, 2010
Posted: 3 pm ET

Would you let a company monitor your debit or credit card purchases so it could send you relevant shopping discounts? That's the aim of a new service called Offermatic. An article in TechCrunch describes it  as "the freak love child of Mint, Groupon and Blippy." That is, the service blends transaction monitoring and e-mailed coupons. Only, Offermatic send you coupons based on the stuff you buy.

You register your cards, up to four, and Offermatic downloads your purchases from your bank. The service will then e-mail you discount offers from merchants based on your transactions. Taking an example listed on the website, if you purchase a subscription to the Wall Street Journal, then you'd receive an offer for a free, six-month trial of the Economist.

Sign up is free and Offermatic says its exclusive discounts range from 40 percent to 90 percent off the retail price.

Offermatic also offers a little payout just for using your credit cards. I do mean little. You earn $1.25 each month per registered card on which you make at least 20 transactions totaling $1,000 or more. So, that's $15 annually per card (and $12,000 of yearly spending). Sixty bucks is the annual cash-back cap.

I wonder how many people would actually benefit from the cash-back component. You get nothing unless you spend $1K on your card. Even worse, if you use your credit card and don't pay it in full every month, the interest will bury the spare change you earn. Don't overspend to save, folks. As my dad likes to say, you save even more if you don't buy it.

Of course, you'd have to trust that your credit card information would be protected, which has been a recent issue for Blippy, a social networking service that shares credit card purchases.

Offermatic launches publicly in about a week, according to its website.

What do you think of sharing your purchase history in exchange for discounts based on your interests? Will you sign up?

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2 Comments
Anne Jordan
May 12, 2010 at 5:35 pm

No, thank you. I'll find my deals in other ways.

Joyce
May 11, 2010 at 6:01 am

There is no way I will participate it this program! My credit history is my business, not some outfit's who would offer me a pittance for this information. This is intrusive on so many levels. It also encourages a person to spend more and more money on credit card purchases instead of spending less using plastic. I am sure they did the demographics before launching this scheme and will snare some takers but in my book, this is extremely foolish. I have never approved of targeting people, for any reason. This company exemplifies the adage about there being one born every minute.