Owing to the high level of competition in the credit card market, card issuers frequently come up with new products to grab a greater slice of the market share. The recent flavor added in this market is the frequent flyer card named WorldMiles by Deutsche Bank.
Frequent flyer cards
Frequent flyer cards are specially designed to benefit people who travel frequently. These cards work on the principle of flyer miles. Every time a person makes some payment using these cards either for buying air tickets or for any other purchase he earns points referred to as flyer miles.
The number of points or flyer miles earned depends on the sum of money being transacted using the frequently flyer card.
When a definite number of points or miles are collected by the customer, then he can redeem these points to receive free airline tickets or concession on purchase of airline tickets. The number of points required for the purpose differs from one card issuer to the other.
The card company may have associations with one or more airlines. The flyer miles can be redeemed while traveling with only that airline which has association with the card company. The airline company provides added benefits to the card holders. In addition to free airline tickets, these cards also offer reward points for hotel accommodations, car rentals and other similar offers.
The fundamental characteristics of these cards are similar to other credit cards. It includes general charges and interest calculated on the amount of purchase that needs to be paid to the card company. These cards also have grace periods associated with them like other credit cards.