Rebate Clearinghouses
Most rebates are handled under contract by rebate clearinghouses that specialize in processing rebates and contest applications. The source of their fees is not readily discernible with conflicting reports from different sides. Roger D. Andersen, former CEO of Young America Corporation, a rebate clearinghouse claims that "Young America receives the same fees whether a submission is valid or invalid," giving them no incentive to unfairly invalidate customer rebates. Young America is currently under investigation by the state of Massachusetts for keeping unclaimed rebate checks. Frank Giordano, founder of TCA Fulfillment, claims "We get paid for every redemption request we enter in the system. If we don't put it in the system, we don't get paid.". TCA is also notable for a "Rebate Redemption Guide" that was sent to prospective clients touting the low redemption rates that they would have with TCA as their rebate fulfillment center, promising 20% less than their competitors.
Read more about this topic: Rebate (marketing)