Bank credit card that enables cardholders to earn discounts or rebates based on card usage. Cardholders earn a certain number of "points" for each dollar of purchases charged to a rewards credit card account; accumulated rebates can be applied to pay down bank loans or exchanged for services, merchandise, gift certificates, travel, or cash. Also called rebate card.

Dictionary of Banking Terms. Copyright © 2006 by Barron's Educational Series, Inc. All rights reserved.