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There are 11 plastic cards in my wallet, wedged between the debit card receipts and a few dollar bills.

They all promise me discounts, points toward greater savings or free stuff just for using them. But let’s face it. I use the grocery cards regularly, and the others just take up space. 

It’s been years since I shopped at DSW. And I don’t wear makeup or use hair products. So why did I agree to an Ulta rewards card? Because next time I shop at those stores, I want special deals.

I am not alone.

More companies now offer loyalty or rewards cards. And most of us have at least one.

Mike Gatti of the National Retail Federation says companies use loyalty programs to better serve and communicate with their customers. 

But is there a cost to consumers? Should we worry about what’s done with the information we provide when using these cards?

With each swipe, companies track spending habits to help make decisions about the kinds of promotions to run, or even where to open a store.

The kind of information companies seek through loyalty programs could be less personal than we think, according to author and consumer advocate Bruce Judson.

“... Ask yourself, what’s the worst that can happen? If it was publicly published (in a newspaper) what my family purchased and bought at a grocery store, would I care?”

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Loyalty programs emerged about 20 years ago, says Gatti of the National Retail Federation. Companies such as Kroger were among the first to embrace the concept. It was a way for them to track consumer buying habits.

“For grocers, it was a great way to get an understanding for what your customers are shopping for, prices they’re willing to pay. ... It’s a great way to gauge your relationship with customers,” Gatti says. “The main reason was to get people to want to shop in your store versus others. A lot of it had to do with discounts on products.”

And for consumers, it’s a fairly effortless way to save money. They aren’t required to clip and file coupons.

An American family of four spends about $9,000 annually on food, according to the federal government’s Consumer Expenditure Survey. Add another $1,000 for paper products and personal care. If a family can whittle those expenditures by 20 percent through coupons and loyalty programs, that’s $2,000 a year. 

Savings. That’s what motivates Jessica Humphrey, an Oak Ridge mother of three who also buys food for her church ministry.

For every $100 she spends at Lowes Foods, she receives 5 cents off gasoline. This enabled her to fill up her tank for $2.05 a gallon around Christmas.

“There are some perks I don’t want to miss out on getting, especially something for free,” she says.

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Loyalty card use now extends beyond the grocery aisles.

Gatti says the craze has exploded within the past five years, as more stores  — and even restaurants — started offering the cards.

Humphrey keeps her 14 loyalty cards on a separate key ring. They give her savings and perks at area grocery, office supply, pet, sporting goods and clothing stores.  

As for retailers, they now use loyalty programs to build relationships, analyze buying habits, target marketing efforts, and adapt products and store hours to customer preferences, Gatti says.

While grocers use a straightforward approach with savings immediately given at the register, other retailers customize their programs differently.

Rather than keep those without cards from receiving discounts, some companies give members occasional freebies or notification about special store sales.

Often, companies reward consumer loyalty with points. Take the beauty supply chain, Ulta. Members earn four points for every dollar spent. Over time, those points are rewarded with discounts at the register. 

Restaurants such as Panera and Smokey Bones reward their regulars, too. Panera prefers to reward its customers in “unexpected and surprising ways,” according to the company’s website. This means a free menu item at random or invitations to exclusive tastings or demonstrations.

Membership to the Bones Club at Smokey Bones, provides diners with a point for every buck spent. Spend $200 and get a $20 credit on the card.

The Sheetz convenience store motto — “Swipe, save and get free stuff” — guarantees customers 3 cents off every gallon of gas, plus occasional free merchandise.

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Marketing researchers and some consumers question whether such savings are truly beneficial. Do loyalty programs encourage consumers to buy things they don’t need, or bypass lower prices elsewhere, just to rack up the points for a future reward?

It happens, consumer advocate Judson says, but he doesn’t think it’s completely the fault of the retailer.

It’s a complex issue with many layers, Judson says. As a society, Americans purchase many things they don’t need. It’s why so many of us have credit card debts requiring credit counseling. He wonders if it’s more that consumers don’t want to pay full price for things.

Take Humphrey and her collection of loyalty cards. Some of them haven’t proved very rewarding, but: “It kills me that I’m paying for something, and the person in front of me could be getting the same thing for less,” she says. “I feel like I’ve been wronged.”

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Some consumers oppose loyalty cards because they don’t want companies to have access to their personal information.

They fear fraud or misuse of their information — a valid concern if companies find loopholes in their privacy policies or if they work with a third-party company with lax security measures.

Humphrey’s attitude: “Somebody’s tracking me somewhere, somehow. It’s just my phone number and address, and you can get that off of Google.”

Judson says retailers are more concerned with which products sell best and at what times. They’re looking for data that could direct them to open a new store in a different location, to stock more store-brand items or to carry a particular product in a different size.

But Judson cites drugstore, movie and book purchases as areas for higher consumer concern. He says consumers may not want what they’re reading, watching or taking over the counter to be tracked.

Gatti says companies closely guard consumer data because the last thing they want is to jeopardize customer loyalty should that information fall into the wrong hands.

A company’s privacy policy should be visible somewhere at the store, website or its rewards program brochure, Judson says. It often will indicate whether customer information is shared with a third party.

He also says consumers should consider a company’s reputation and track record regarding privacy breaches.

There are other positive uses for the data. In recent years, the Centers for Disease Control and Prevention used shopper loyalty information to narrow down the list of foods that made people ill. People often don’t remember what they ate or brands they purchased. Their shopping data helped the search.

The CDC obtained permission from consumers to review their shopping data, which helped them determine they were all sickened by the same product. The investigation led to food recalls.

Such information also proved useful in recent recall efforts. Companies were able to contact parents whose buying histories indicated they purchased particular cereal or toy brands.

Judson says he would be more concerned with information shared with credit card bureaus than with retailers tracking buying habits and seeking customer loyalty.

When it comes to loyalty programs, consumers ultimately have the power to share or withhold information.

Concerned about sharing personal data? The easiest way to avoid anyone tracking your spending habits is to pay full price for purchases and use cash.

News Researcher Diane Lamb contributed to this report.

Contact Tina Firesheets at 373-3498 or tina.firesheets@news-record.com