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3 On Your Side: Loyalty Programs

By Jim Donovan

PHILADELPHIA (CBS) -- When it comes to shopping, retailers try everything they can to keep customers coming back. That includes offering loyalty programs. Whether it's for gas, food or to buy airline tickets, loyalty programs lure many of us in.

3 On Your Side consumer reporter Jim Donovan takes a look at one program that is taking a slightly different approach.

You may have heard about it, it's called the Plenti card. Unlike most other programs it links together different retailers.

It seems every time you turn around there's a new loyalty program being pitched to shoppers.

One of the newest is called the Plenti Card.

Run by American Express' loyalty program, it has nothing to do with their cards.

Instead it allows you to spend and accumulate points at one place - and cash in at another.

"Looked into it and actually became rather surprised," said Edgar Dworsky with ConsumerWorld.org.

Dworsky says despite the fact you can earn points at a slew of retailers, right now you can only redeem them at Macy's,  AT&T, Exxon, Mobil and Rite Aid.

"The truth tends to be in the fine print, the headline, sometimes they play a little fast and loose with it," said Dworsky.

Marketing expert George John says the broadness of the program makes it stronger than most but it might not lead to big savings.

"People buy things they shouldn't buy because there's a reward sitting on the cusp. Are we gaining psychologically? I would say yes.  Are we gaining financially? Not really," said John.

The Plenti Card was launched in May and American Express says it already has 20 million users.   They say they plan on adding more retailers where points can be redeemed in the future.

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