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Published on: October 13, 2026
By: Steve Cocheo, Senior Executive Editor at The Financial Brand
Consumers Are Putting Rewards to Work
Competing to pay the restaurant bill is becoming increasingly common, according to Courtney Mitchell, head of credit card and unsecured lending at Citizens Bank. However, the motivation is not always generosity. Many diners want the entire purchase charged to their rewards card so they can earn points or cash back, while their friends reimburse them later through cash or a peer-to-peer payment service.
Mitchell recently experienced this behavior during a family meal when a relative took her card from the server before payment. He returned it and used his own card instead.
“He still expected me to send him my share. He simply wanted the rewards,” Mitchell explained.
The example reflects a broader trend identified in Citizens research: consumers are using credit card rewards more deliberately as they look for ways to stretch their budgets amid persistent inflation. Cardholders are paying closer attention to which card they use for routine purchases, large expenses and planned spending.
Key Findings from the Citizens Research
- Just over half of surveyed cardholders view rewards as a way to gain more value from purchases they already plan to make, rather than as a reason to spend more.
- Fifty-five percent say rewards and card benefits matter more when choosing a card than they did three years ago.
- Forty-one percent say rewards frequently or always affect where they eat, shop or spend. Among Gen Z cardholders, that figure rises to 72%.
- Seventy-six percent of households earning at least $150,000 annually prioritize rewards rates or cash back when selecting a card, compared with 58% of households earning less.
- Thirty-four percent have used card benefits to free up money for debt repayment, while 27% say rewards have helped them add to savings or investments.
- Thirty-nine percent say rewards help offset the cost of social activities such as dining out, while 33% cite travel and 25% mention gift purchases.
Rewards Have Become a Cardholder Expectation
The research followed Citizens Bank’s redesign of its credit card lineup. Mitchell said the bank wanted to better understand what consumers now value most in a card.
Rewards were once a major point of differentiation between card issuers. Today, however, many consumers view them as a basic expectation. Cardholders understand that credit cards can deliver meaningful value, and they may look elsewhere if their current issuer does not provide it.
Growing credit card surcharges may also be increasing customer expectations. When consumers pay additional fees for using a card, they are likely to demand stronger rewards and benefits in return.
For 36% of consumers, the most satisfying benefit is receiving the same experience for less money. Another 26% enjoy obtaining a premium product or experience without using their savings. Fourteen percent are most interested in upgrades involving travel, dining or entertainment.
Many Consumers Believe They Are Leaving Rewards Unused
Despite the growing focus on benefits, most cardholders do not believe they are maximizing their rewards. This concern is particularly apparent among higher-income consumers.
Only 11% of respondents earning $150,000 or more say they are making full use of their card perks. By comparison, 26% of those earning less than $150,000 believe they are maximizing their benefits.
Mitchell attributes the gap partly to the types of cards used by different income groups. Higher-income consumers are more likely to carry premium cards with extensive features, exclusive offers and complicated benefit structures. The broad range of options can make it difficult to track and use every available benefit.
Consumers with lower incomes often choose straightforward cash-back cards. These products make it easier to connect spending with rewards and understand the value being received.
Better Communication Could Increase Card Engagement
Issuers can help customers capture more value through stronger and more timely communications, Mitchell said. Marketing materials typically outline a card’s benefits at the time of application, but follow-up messaging after account opening could reinforce how and when those benefits should be used.
Mobile banking tools may also improve engagement. A digital dashboard showing redeemed, pending and available perks would give cardholders a clearer view of their remaining value and help them decide which card to use for each purchase.
Personalized alerts could be especially useful when spending behavior suggests that a customer is not taking advantage of a benefit. These reminders can turn a static rewards program into an ongoing relationship between the cardholder and the issuer.
Exclusive Experiences Are Becoming More Important
Effective card rewards programs require continuous engagement, not just a strong launch promotion. Periodic reminders about selected benefits can keep the card top of mind, while behavior-based messages can alert customers when they may be missing valuable opportunities.
One-time events and exclusive access can also create powerful opportunities for customer reengagement. In July, Citizens hosted a Summit Reserve event alongside the Major League Baseball All-Star Game at Citizens Bank Park in Philadelphia. Cardholders received access to player meet-and-greets, a pregame gathering and discounted game tickets.
Mitchell noted that exclusive event access is becoming an important differentiator in the premium card market. Airport lounge access, once considered a standout feature, is now increasingly viewed as a standard benefit for high-end cards.
Citizens does not operate its own lounge network like some major card issuers. Instead, its Summit Reserve World Elite Mastercard includes Priority Pass membership and four complimentary lounge visits each year.
What the Trend Means for Card Issuers
Credit cardholders are becoming more strategic about earning points, receiving cash back and using premium benefits. In an inflation-conscious economy, rewards are no longer viewed simply as extras. They are increasingly being used to reduce expenses, manage cash flow, repay debt and support savings goals.
For banks, the opportunity extends beyond offering attractive rewards. Issuers that clearly explain benefits, personalize reminders and create distinctive experiences may be better positioned to increase card usage and build long-term customer loyalty.
Source: TheFinancialBrand.com