Frequently Asked Questions
General
How is this possible? Where does the money come from?
When you are issued a Cash Reward from a participating Cash Reward merchant, they are paying for your participation in the program with money they’ve redirected from their advertising and marketing budget. That money sits in a pool and it is paid out of this same pool on a monthly basis to certificate holders who properly redeem their Cash Reward. Although Cash Rewards is not an insurance product or an investment, it does make payouts much the same way an insurance company does – from the premiums (Cash Rewards certificate purchases) of its customers.
When do I get my Cash Rewards Certificate?
When you close a sale, you receive your certificate.
Why must I register for the CRI program and then redeem later?
Our member (your merchant) and our ITPA have a way to track and confirm participants in the program. Your registration is required to acknowledge your participation in the program and the redemption is required in order for you to get your check.
Am I obligated to keep my purchase for the deferred period?
No, you are not obligated to do so. You are, however, required to prove that your product was paid for as required by the program. For real estate and mortgage clients, you do not have to be living in the home you purchased when you were issued your Cash Reward at the time you submit your redemption.
There is one exception to this guideline. You may not return, or get a credit for, your product during the deferral period.
Who qualifies for a cash reward?
Anyone adult who purchases a product from a certified Cash Rewards merchant is eligible. Only one purchaser will receive a Certificate for each purchase.
How can the fund stay solvent?
Insurance, coupon and rebate programs like Cash Rewards work on the concept of “breakage:” not everyone who pays into the program follows the steps to collect on it. For example, the entire pool of an insurance fund contributes to the fund, but not everyone has an accident; health insurers collect from all the insured but pay out only to those who need medical services.
The difference between what is paid in and what is paid out - the “breakage” - is what makes it possible for the companies to pay legitimate claims and still stay in business.
Banks and many other large institutions also count on breakage. Some examples or where unclaimed money exists are unclaimed bank account balances, lottery winnings, PMI mortgage premiums, etc. – the list is huge. In all these cases, the unclaimed money remains in the fund and it is used to pay for future claims, winnings and redemptions. Did you know that the IRS is holding $2.5 million in unclaimed tax refunds for calendar year 1999 alone?
What if you go out of business?
It is important to Cash Rewards that the money available for redemptions is well cared for. In order to make sure that redemptions claims get honored whether or not we are in business, we have the program an ITPA. This way, whether we or a Cash Rewards Merchant go out of business, customers with valid certificates who follow the proper procedures will get a check.
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Claim Fund & ITPA
What is the Claim Fund?
The Claim Fund is an escrow account held at Citibank. All monies in the fund are paid either to customers who follow all the program conditions or nationally recognized charitable organizations that receive funds that are not claimed by reward-certificate holders.
How do I know the money be there when I submit my claim?
Most of the money in the Claim Fund will be invested in low volatility instruments like CD’s and Money Markets; the rest will stay in secured the Claim Fund account in Citibank.
What happens to the money if I don't claim it?
Funds not claimed by certificate holders are given to nationally known charities.
What do Independent Third Party Administrators (ITPA) do?
ITPAs review all Certificate registrations and claims for redemption and decide if the Certificate holder has met the terms of the program. If they have, the ITPA authorizes the escrow agent to pay the claim. ITPAs are unaffiliated with CRI or any potential beneficiary of the Claim Fund, so they which allows them to act objectively and independently.
The ITPA has access to the Claim Fund only through an appointed escrow agent and the agent can only pay funds to approved claimants or recognized charities.
Cash Rewards is not legally required to have a Claim Fund or an ITPA, or to give unclaimed funds to charity. The ITPA was put in place to ensure that the redemption process is impartial. The process of giving unclaimed money to a charity was decided upon because we want certificate holders to know that if they don’t collect their money, Cash Rewards and the merchant have nothing to gain from them not doing so.
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Registration & Redemption
Why must I use certified mail?
We ask you to do this so you can track when your documents were sent and delivered. Also, it helps prevent any disputes that may arise as to whether or not mailing deadlines were met.
What if my registration arrives after the 7-day period?
The paperwork only needs to be mailed (postmarked) within the 7-Day period.
Why does it take 36 months to collect my reward?
The Cash Rewards program is based upon paying out large sums of money to holders of properly redeemed certificates. In order for the fund to provide such large amounts on a monthly basis, it takes a much longer time frame than it does with similar programs with which you may be familiar.
Why do you require so many documents for redemption?
At first glance it might seem that many documents are required so that we can find an excuse to deny a claim, but in fact the opposite is true. Because amounts up to $10,000 are a substantial amount of money, we want to ensure you are who you say you are and that you are the correct party who is qualified to claim the reward. In order to do this, we require:
- Certified birth certificate.
- An invoice from your transaction.
- Your Proof of Purchase
- Current utility bill to ensure the reward is sent to a valid address.
The ITPA receives both the claim and the documents and reviews them very carefully to make sure your claim is handled properly.
What happens if I die before the redemption period?
The Certificate is redeemable only by the person it was originally issued to; it is not transferable for any reason. If you die before collecting your reward, your unclaimed funds goes back into the pool, used to pay other claims or donated to charity.
Can I have my merchant issue my certificate to someone other than myself?
No. The certificate must be issued to the purchaser. When more than one person makes a purchase together, you much choose someone to receive the certificate.
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