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If you're in the market for a new set of tires, a rebate can make your next purchase a great deal. With rebates, you pay the full price at the time of purchase and submit a form with your documentation (such as the receipt) to get money back. If you've taken advantage of a rebate in the past, or are considering taking advantage of a tire rebate this year, you may have noticed that manufacturers like to give money back in the form of a prepaid card.

But why?

Today we're taking a look at why rebates offer prepaid cards and the advantages of this option for customers and tire manufacturers. Convenience, speed, cost, and even psychology play a role in why plastic beats paper when it comes to issuing rebates today.

Reason #1: People Like Prepaid Cards

It's true. One of the primary reasons that prepaid cards are offered is due to the convenience and versatility they provide customers. Prepaid cards are widely accepted, and the funds are available almost instantaneously after activation (you usually have to call a 24/7 automated number or go online to activate the card). You can then use the card for just about anything, including online shopping. The freedom to spend the rebate money on what you need when you need it is an attractive incentive.

In a survey, five times as many respondents chose a prepaid card over cash when given the choice of either.

Reason #2: Processing is Faster

Checks require manual input, printing, sorting, and mailing – a process that can be lengthy and prone to human error – while prepaid cards are often generated and dispatched through automated systems. Once your rebate is approved, the card can be quickly prepared and mailed out without as many steps as issuing a check.

Prepaid cards also bypass the need for banking verification processes that checks go through. When you deposit or cash a check, the bank must verify the funds and process them, which can add time before the money is available in your account.

The logistical and administrative efficiency associated with prepaid cards also tends to be better. Manufacturers and rebate processing companies often have existing systems and partnerships with prepaid card providers. This infrastructure is geared towards quick delivery, leveraging bulk mailing and distribution processes that are not as easily accessible or streamlined when issuing checks.

Reason #3 - The Costs are Better for the Manufacturer

The administrative workload and costs associated with issuing checks are higher for manufacturers. Checks require account management, reconciliation, and a higher level of customer service support when a check is lost, incorrectly issued, or unreceived. Prepaid cards reduce these burdens.

Issuing rebates in the form of a prepaid card can also offer financial benefits for the manufacturer. There may be agreements in place with the card issuers that limit the cost to the manufacturers, making this option more attractive from the business standpoint.

Additionally, not all rebates are redeemed. In some cases, cards may have an expiration date, after which time the unspent balance is no longer available. While this isn't a benefit to the customer, it does reduce the total cost of the rebate program for the manufacturer.

Shop 2024 Spring Tire Rebates in Kensington, MD

You can score your own prepaid card when you shop tires at Quality Discount Tire and Auto in Kensington, Maryland and take advantage of any of the tire rebates offering them. If you have questions on which tires are eligible for a rebate, let our team know. We'll assist you in locating the right tires for your make and model.