Starbucks Will Use DM for Credit Card

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Starbucks Coffee Co. will use direct mail and store displays to market a co-branded credit card in the fall with Bank One and Visa.


The card will do double duty as a rechargeable Starbucks store card, letting customers prepay for beverages or items by loading money onto the card. This reportedly is the first time a credit card in the United States will offer these dual payment options.


The Seattle coffee retailer's credit card will offer rewards to users toward free products and rebates. The rewards will be redeemable immediately, unlike card loyalty programs associated with airlines.


Starbucks debuted prepaid cards in November 2001. The intent was to solicit repeat business from existing customers and sales from holiday shoppers seeking gift options. The company claims about 7 percent of its transactions are made with the prepaid card.


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