Chase Manhattan Corp. has revised the terms of its Toys 'R' Us Visa card, raising the cash rebates on store purchases.
Cardholders can now get 4% back on all purchases made at Toys 'R' Us, Kids 'R' Us, and Babies 'R' Us. All other purchases still earn a 1% cash rebate.
Rebates are redeemed through "Geoffrey-dollar coupons," which are gift certificates issued in increments of $10. Geoffrey, the store's mascot, is a giraffe.
Chase is bidding to boost the program's popularity.
"We do external research with customers and prospective customers and we determined that the value proposition for the Toys 'R' Us card wasn't as compelling as we would have liked it to be," said Paul Keiser, vice president of partner management at Chase.
The bank tested the new card terms on Toys 'R' Us customers and found that they now see the card as worthwhile. The old card came with a 3% rebate on purchases at Toys 'R' Us and its sister stores.
The card's annual interest rate is the prime rate, 8.25%, plus 9.9%- making it 18.15%. Balances can be transferred at 9.9% until those amounts are paid off. There is no annual fee.
Chase is designing a Web site for the card with a link to the Toys 'R' Us home page. The companies are also using direct mail and in-store promotions.