Discover Financial Services is adding prepaid cards to the redemption options in its credit card reward program.

Cardholders will be able to start trading in reward points for prepaid cards May 1, Dana Traci, a vice president of retail partner marketing at the Riverwoods, Ill., company, said in an interview last week. The nonreloadable gift cards will bear Discover's brand, and cardholders can redeem them once they accumulate at least $20 of reward points.

Cardholders will still be able to redeem points for credits to their accounts, gift cards for other retailers or merchandise.

The prepaid card option will give cardholders "more choices and more options of how they want to receive their rewards," Traci said. "It gives them a great alternative."

Discover has started alerting some cardholders to the prepaid option through its Web site and monthly statements, and it will use those venues and "other marketing channels" to inform others, she said.

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