What are custom reward programs?

Custom reward programs are reward programs are aimed at prestige credit card users.  As these users tend to accrue a large number of reward points they tend to find it hard to spend these points.  

Prestige cards are the more expensive cards such as the gold, platinum and black credit cards.  They tended to have generous rewards programs and card users who spent a lot on their cards.  These card users were not interested in most of the rewards offered, particularly the flights as they tended to fly on business and so already built up flights through frequent flyer programs, and so were finding it hard to use the rewards schemes.  They were building up too many reward points

The non-flight rewards were generally aimed at the mass market and so not attractive to the more well off part of the population.  High end prestige cards proved hard to sell as many of the target market could not see any benefit from the card.

This was a big problem because rewards points are a big inducement for prestige cards that can not only charge higher interest rates, but they can also have higher annual fees and set up charges.  The rewards programs were not the only reason for these higher fees, but they were a major factor.

The custom reward programs can allow a card to choose any reward that they want, such as a luxury cruise, and this can be traded for reward points which are taken off the card balance with the card user paying any difference.

Prestige cards have started to offer concierge services, where a personal assistant can be phoned up to carry some of the time consuming menial tasks such as personal shopping or booking restaurants.  Concierge services are a crucial element in custom reward programs as they research the elements that have to be purchased, whether the reward program can cover them and the points needed for the whole experience.  The concierge service can do this without charge.

These custom rewards programs allow card holders to pay for luxuries that they would otherwise worry that they would be too frivolous.  There are restrictions that are made on what the reward points can be spent on so that it is restricted to luxuries.  This will mean that they are not used to buy necessities or investments, although the restrictions can be narrowly drawn.