By Chron Contributor Updated January 19, 2021
What's a credit card promo code? Credit card offers arrive in the mail every week for many Americans. To convince recipients to open credit accounts, card manufacturers offer special benefits to customers. These benefits, called promotions, are targeted to certain customers, and those customers are provided with special codes. These promotion -- or promo -- codes are used by those who sign up to receive credit cards. The codes tell the company which benefits the customers are entitled to.
Finding and Using Codes
Recipients of credit card offers can find a promo code among the paperwork that accompanies the offer. For example, Visa will send you a Visa promo code. X1, which is a new type of so-called smart credit card that launched in 2020, may offer an X1 card bonus code. Alternatively, you can search the Internet for Visa promo codes, X1 card bonus codes, and any other promo code you'd like though it may not always return a result.
Promo codes normally appear as a series of digits or letters. To use the codes, recipients must follow the directions accompanying the credit card offer. In most instances, you can enter a promo code via the card company's website. Most offers also allow you to apply by phone and enter the code during the phone call.
Generally, a promo code cannot be used by anyone other than the person who receives the credit card offer, though that may not be the case for offers available online. Once approved for credit, new customers receive cards in the mail. When customers use their cards, they automatically receive the promotional discounts.
What's a Promo Code's Purpose
Credit card companies use promo codes to draw in new customers. Companies maximize success by targeting promotions to those who are most likely to find value in certain discounts. Companies also use promo codes to limit the availability of the offers to those who meet certain criteria.
Primarily, companies want to ensure that offers are only extended to those most likely to possess solid credit history. This isn't always the case though. For example, new credit cards like X1 may simply be raising awareness with their X1 card bonus codes. The waiting list is what limits the use.
Generally, promo codes provide discounts. Some promo codes offer cash back on purchases made using the card, which is a common Visa promo code offer. Other codes entitle customers to low interest rates or give a certain number of points, which can later be converted into deals. Common discounts and deals include reduced prices for hotel stays and airline tickets.
When Do Promo Codes Expire?
Card offers with promo codes typically include an expiration date. Recipients of card offers must use the promo codes by the expiration date to take advantage of the promotions. Some promo codes also only provide promotional benefits for only a limited period of time.
For example, some promo codes provide customers with a low introductory interest rate that changes to a higher rate after one year. Credit card companies can nullify promotional benefits when cardholders fail to make timely payments on their credit accounts.
What's a Concern of Promo Codes?
While promo codes provide some attractive benefits, they can motivate you to make purchases for items that you may not need. Beware of buying simply to save money on purchases or to take advantage of low interest rates. Credit must be managed with great care: You are borrowing money and will be required to pay back all that you borrow. Interest rates and late fees can eliminate part or all of the promo code's savings.
It's also important to compare interest rates and annual fees to other cards before jumping into opening a card based solely on offers. It may not pay in the long run, and closing a card with a high annual fee may be detrimental to your credit.
FAQs
Generally, promo codes provide discounts. Some promo codes offer cash back on purchases made using the card, which is a common Visa promo code offer. Other codes entitle customers to low interest rates or give a certain number of points, which can later be converted into deals.
What is promo card code? ›
What are promo codes? Promotional codes are alphanumeric strings that online stores offer to encourage purchases on their website and are typically associated with an overarching promotional marketing strategy. The discount associated with a promo code can apply to individual products or an entire order.
What is a promo code example? ›
A promo code is a random set of numbers and letters associated with a discount or advantage, such as 'free shipping,' 'free sample,' or 'buy one, get one free. ' Its benefit is applied during the purchasing process when the code holder presents it before making the payment.
What does it mean to have a promo code? ›
A promotional code is a code offered by retailers to customers who can use it to receive a discounted price when buying products online. The website lists hundreds of voucher codes and promotional codes which means you can save money instantly.
Are promo codes worth it? ›
Are coupon codes worth your time? 80% of consumers are more likely to shop from a new brand if it provides a discount coupon, and that number jumps to 89% for millennials.So, yes, in short, coupon codes are an effective marketing tactic...But there's a caveat.
How do I get a promo code? ›
If you're new to finding coupon codes, here are the most basic and tried-and-true methods for finding discount codes.
- Google search. ...
- Coupon toolbars & extensions. ...
- Coupon websites. ...
- Store's own coupon page. ...
- Newsletter signup. ...
- Live chat. ...
- Abandon your shopping cart. ...
- Slickdeals.
These benefits, called promotions, are targeted to certain customers, and those customers are provided with special codes. These promotion -- or promo -- codes are used by those who sign up to receive credit cards. The codes tell the company which benefits the customers are entitled to.
How many digits is a promo code? ›
A promo code is a four or more digit code that can be used to at checkout to receive a discount on items.
How to generate a promo code? ›
Create a promo code
- Choose a promo code name.
- Choose whether your discount is a percentage of the cost or a specific dollar amount.
- Choose which tickets or registrations your code applies to.
- Set the promotional period for your promo code.
- Limit the number of redeemable codes or make them unlimited.
Promo codes are synonymous with coupon codes; although a coupon code tends to activate a price discount, promo codes can unlock buy-one-get-one free deals and other offers. Promo codes can lure in new customers with lucrative discounts and offer existing customers the best deals on their favorite products.
Discounts and coupon codes can alter the perceived value of products or services by making shoppers feel like they're getting more for their money. One study found that consumers are approximately twice as likely to purchase a product that's 20% off compared to one at full price.
How do promo codes make money? ›
Voucher codes typically generate revenue through affiliate marketing. When users use a voucher code to make a purchase, the website or platform providing the code earns a commission from the retailer.
How do promo code sites work? ›
Coupon websites that generate coupons typically have partnerships with various brands and generate exclusive discount codes for their users. These codes are often unique and can only be found on the coupon website. Users can then use the coupon code during checkout to receive a discount on their purchases.
How do you know if a promo code is real? ›
The source of a coupon is one of the best ways to tell if it's a legitimate code or not. If the deal comes from the retailer's official website, email newsletter or a verified social media page, chances are it's legit. You can also trust well-known coupon sites, like CouponCabin, to have coupons that are real.
What is the psychology behind promo codes? ›
Scarcity: Promo codes often have limited availability or a specific expiration date. This creates a sense of urgency and encourages customers to act quickly before they miss out. The scarcity principle has been widely studied in marketing and consumer behavior.
What are the disadvantages of discount codes? ›
The biggest con of using coupons is that they cost businesses money and may lead to lower profit for that sale. Another drawback is when existing customers wait for coupons, cannibalizing existing revenue before the coupon program.
What is a promo card? ›
Promotional cards are different in that your customers do not purchase them. These are cards that represent a value (you choose what that value is) to the customer. As the merchant, you distribute these card to potential customers in order to attract business or build a promotion.
Is A promo card the same as a gift card? ›
Promo codes can be time-limited, and they can be used once or multiple times depending on how the store owner sets them up. On the other hand, a gift card is a prepaid card that customers can purchase (or given upon refund) and then give to someone else as a gift.
What is a promo code for a gift card? ›
Promotion codes are used to discount items quickly on the Retail screen or in your online store. You can create a promotion code to discount gift cards specifically but keep in mind that it can apply to both prepaid and assignable gift cards.
