Direct cash rebates and student credit card
Another industry tactic is direct cash rebates. Among the many innovative programs is "virtual" (on-line) Principal Bank’s direct deposit of as much as 1.25 percent cash rebate (minimum of $100) of charges on its Principal Platinum Visa into a free checking account. NationsBank even offers baby boomers an opportunity to prepare for the golden years with its Start card. The latter funds a tax-deferred annuity for retirement with Metropolitan Life based on a 1 percent rebate of cardholder charges. Although these membership benefits are touted as "free rewards," the fine print will probably surprise you. The Associates National Bank Visa proclaims "up to 3 percent cash back’ but only if you are a "revolver," that is, paying at least 19.9 APR. Like political freedom in any democracy, "free" in the student credit card Nation has varying meanings and costs. Indeed, these membership benefits are paid by relatively higher finance charges and annual account fees, and a "free" airline ticket may be much more expensive than a discount fare depending on the cost of membership fees and the volume of credited charges.
Even more insidious are the aggressive efforts to recruit the newest and least experienced consumers–college and, increasingly, high school and junior high school students. This is exemplified by Citibank, the largest issuer of "kiddie" student credit card. Its sophisticated targeting of adolescent vulnerabilities and youthful ignorance is illustrated by a 1993 advertisement: "The Citibank Classic Visa instills in students feelings of safety, security, and general wellness not unlike those experienced in the womb. Therefore it is the mother of all student credit card. . . [it offers] a sense of Identity . . . Security . . . and Autonomous Will
from your newfound financial independence . . . don’t be crazy . . . Call (students don’t need a job or a cosigner)."
Today, student-targeted advertisements emphasize how student credit card reduces the stress of college life, contribute to social independence (especially from parents), offer conveniences for coping with modern life, enhance social status, and facilitate those special moments. This marketing equates the use of student credit card with freedom from many of the commonplace hassles as part of the normal transition to adulthood. For instance, a 1998 mass mailing by Associates National Bank Visa exclaims, "Free from parental rule at last. Now all you need is money." A 1998 MasterCard television ad discusses a first date and declares, "Dinner $40. Movie $15. Second date with the right girl: Priceless.”