The holiday season is synonymous with shopping, or in other words, putting a snowball-sized dent in your wallet. The good news? According to Discover's annual holiday shopping survey, many consumers plan to turn some of their holiday shopping into cashback and other rewards. This Smart News Release features multimedia. View the full release here: http://www.businesswire.com/news/home/20161115005420/en/
When it comes to converting credit card rewards, 67% of consumers say they prefer to earn cashback during the holidays, while 16% prefer to earn travel rewards. (Graphic: Business Wire)The survey found that consumers plan to spend an average of $1,159 this holiday season, with much of the holiday tab being charged to their credit cards. Thirty-eight percent of those surveyed say they'll use a credit card for most of their holiday purchases, making credit cards the most popular form of payment during the holidays. That's followed by 28 percent who say they'll mostly use a debit card, 19 percent who say they'll pay cash for most purchases and 8 percent who will favor redeeming gifts cards or rewards/points. Of those who plan to use a credit card for most of their holiday shopping, 46 percent say their biggest reason for doing so is to earn rewards. That's compared to 27 percent who cite convenience, 16 percent who cite the ability to track their spending and 11 percent who say they won't have enough cash on hand. Among credit card users, 33 percent say they focus on earning rewards while holiday shopping, compared to 10 percent who say they focus on redeeming rewards. Thirty percent say they are equally focused on earning and redeeming rewards.