Nearly Half of Rewards Card Holders Aren't Planning to Do ANY Shopping -- Online or In-stores -- on "Black Friday"

  Nearly Half of Rewards Card Holders Aren't Planning to Do ANY Shopping --
                   Online or In-stores -- on "Black Friday"

Capital One Survey Reveals Rewards Redemption is on the Rise as the Holiday
Season Approaches

PR Newswire

MCLEAN, Va., Nov. 14, 2012

MCLEAN, Va., Nov. 14, 2012 /PRNewswire/ --This "Black Friday," the
traditional prime holiday shopping day, nearly half of rewards card holders
are not planning to hit stores or online retailers according to the latest
Capital One (NYSE: COF) Rewards Barometer (, a quarterly
survey among American consumers that focuses on how they accumulate and redeem
credit card rewards. However, that doesn't necessarily mean holiday shopping
budgets are down as more than half of rewards card holders' (58 percent)
budgets remain the same as last year and 14 percent are planning to spend more
this year. Credit card rewards can help supplement these holiday budgets, yet
only 18 percent are taking advantage of redeeming rewards for gifts. 

"Consumers' shopping habits are really changing. They 're becoming more
accustomed to sales all the time, every day—not simply using coupons or on
specific dates anymore," says Jacqui Stafford, style expert and author of The
Wow Factor: Insider Style Secrets for Every Body and Every Budget. "You really
don't need to be a bargain hunter to score some fabulous deals this year."

Holiday Spending: Men versus Women
More than one-third of respondents said the economy has changed how they use
rewards, especially women with 23 percent reporting that they now use rewards
to offset essential expenses like gas and groceries. Further, this holiday
season, more women plan on spending less than the prior year in comparison to
men (24 percent vs. 18 percent). Thinking ahead to post-holiday shopping
bills, men and women are on the same page with one-quarter planning to use
their cash rewards earned from holiday shopping as a credit on their statement
to offset holiday expenses.

Holiday Travel
The hustle and bustle of holiday travel is the ideal time to take advantage of
rewards, but more than a quarter of those who tried to redeem rewards for
travel were unable to do so with blackout dates to blame. With 24 percent of
respondents still undecided as to whether they'll plan to travel this holiday
season, these blackout dates as well as rewards restrictions may prevent their
last minute travel. In fact, more than half would consider traveling during
peak holiday periods (e.g. within 1-2 days of Thanksgiving, Christmas and New
Years), if guaranteed to be able to use rewards for their trip. Interestingly,
nearly 80 percent of respondents haven't even tried to redeem for holiday
travel this year, with many saying that they thought it was too much of a
hassle (28 percent) or they didn't have enough time to plan (29 percent).

"Traveling during the holidays can certainly be stressful, but using your
rewards to book your trip doesn't have to be a hassle," said Amy Lenander,
Vice President of Rewards Programs at Capital One. "Not all rewards programs
are alike and blackout dates are not universal, so look at the fine print for
restrictions to make sure you are able to travel any time you want."

Rewards Trends
Additional trends stemming from the Rewards Barometer this quarter include:

  oSince 2011, the top three credit card rewards have been cash, gift cards
    and domestic airline tickets.
  oSince the spring of 2012, 40 percent of rewards card holders consistently
    reported they prefer a simple rewards card offering the same rate across
    all purchases.
  oApproximately one-third of consumers remain unaware if they are charged a
    fee or additional expenses when using rewards to book travel.
  oOver the last year, approximately half of rewards card holders remain
    unaware that they may be charged foreign transaction fees for purchases
    made while traveling abroad.

Rewards Tips
Capital One offers the following tips to help consumers use their rewards to
simplify the holiday season:

  oRedeem for Gifts: Rewards can help ease the financial burden of the
    holiday shopping season so join nearly half of rewards card holders who
    are considering redeeming rewards for gifts this year.
  oCan't Decide, Get them a Gift Card: For family or friends that are
    difficult to shop for, use rewards for a gift card so they can get what
    they truly want this holiday season. Of those who plan to redeem for
    holiday gifts, 58 percent plan to redeem for gift cards rather than
  oBook Now, Redeem Later: If you plan to use your Capital One rewards card
    for all your holiday travel, you can retroactively redeem rewards online
    and on your Smartphone within 90 days of your travel purchase with
    Purchase Eraser.
  oBook Travel without Hassles: Get a rewards card that offers the
    flexibility to redeem rewards for future travel without fear of blackout
    and expiration dates. One quarter of rewards card holders surveyed plan to
    use the rewards earned from holiday shopping toward spring or summer
    travel in 2013.

Survey Methodology
This BIGinsight survey was conducted from September 20–25, 2012 among U.S.
Adults 18+ who indicated that they currently have a "rewards credit card" –
that is, a credit card with a rewards program that is issued by a bank or
credit card company. The total sample size for this survey was N=1,045, with a
margin of error of +/- 3.1%. BIGinsight delivers executives timely,
consumer-centric insights from multiple sources. As a comprehensive resource
of information, BIGinsight represents the voice of the consumer and provides
knowledge to marketers regarding consumer views on the economy, personal
finance, retail, lifestyle, media and domestic and world issues.

About Capital One
Capital One Financial Corporation ( is a financial holding
company whose subsidiaries, which include Capital One, N.A., and Capital One
Bank (USA), N. A., had $213.3 billion in deposits and $302.0 billion in total
assets outstanding as of September 30, 2012. Headquartered in McLean,
Virginia, Capital One offers a broad spectrum of financial products and
services to consumers, small businesses and commercial clients through a
variety of channels. Capital One, N.A. has approximately 1,000 branch
locations primarily in New York, New Jersey, Texas, Louisiana, Maryland,
Virginia and the District of Columbia. ING DIRECT, a division of Capital One,
N.A., offers direct banking products and services to customers nationwide. A
Fortune 500 company, Capital One trades on the New York Stock Exchange under
the symbol "COF" and is included in the S&P 100 index.

Capital One is committed to driving industry leading rewards by consistently
engaging its customers with rich rewards, perks and benefits. The No Hassle
Rewards^®program from Capital One offers easy ways to earn rewards and a
flexible suite of redemption options including travel, cash back, merchandise,
gift cards, experiential rewards and more. With No Hassle Rewards, there's no
limit to the amount of rewards a customer can earn and rewards don't expire.

*Survey conducted among U.S. Adults 18+ who indicated that they currently have
a credit card with a rewards program that is issued by a bank or credit card

Contact: Pam Girardo

SOURCE Capital One

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