The rebate processor Ohana Cos. Inc. said it will offer rebates on MasterCard Inc. prepaid cards.
Ohana, which works with such retailers as Sears, Roebuck and Co. and Kellogg Co., will continue to offer consumers rebates by check. The companies said that rebates are a good niche for prepaid cards.
"We believe [product rebates] are a strong segment for prepaid cards and one that shows the flexibility of prepaid to offer an efficient, effective payment tool for consumers," said Neil Dugan, MasterCard's vice president of prepaid, Americas. Ohana has relationships with multiple prepaid issuers. Ohana announced the move on Tuesday.
Such partnerships provide "opportunities for prepaid in areas such as rebate fulfillment," Dugan said.
A struggling economy has spurred consumers to seek the best deals and "best overall experience from their retail interactions," he said. "As a result, retailers and manufacturers alike are looking to incentive options such as rebates as an opportunity to attract and retain their customers."
Prepaid cards can help enhance rebates because they "provide customers simple and flexible redemptions while also providing greater opportunities for merchants and manufacturers to increase loyalty and spend," Dugan said.
Besides a rebate process linked to a merchant's point of sale system, Ohana's platform also provides "valuable redemption offers to customers," Ohana said.
