This article studies and identifies factors that affect the redemption of reward points under customer loyalty programs commonly adapted by Chinese credit card issuers. This article also studies the customer awareness of reward-point programs for Chinese credit card users. Regression analysis based on over 400 telephone interviews in China was conducted. Furthermore, many examples from different countries are introduced to compare with Chinese consumers. Results from the study show low customer awareness about point-based reward programs and low redemption rates. Further study shows the strong correlation between lack of awareness about the reward-point program and the low level of interest among customers toward the program. Key factors that affect the redemption of reward points include the awareness of the reward-point program, the attractiveness of the incentives, duration of the credit card, and frequency of credit card usage. This article suggests that effective communication by credit card marketers and customers' experience with the benefits are essential to promote awareness of the point-based reward programs. This study on credit card reward programs in the banking industry focuses on the lower-middle-income segment in the developing market. © Taylor & Francis Group, LLC.