What the Heck is REI?
For those of you who haven’t heard of it, REI is Recreational Equipment Incorporated, the Seattle-based retailer of outdoor and travel equipment and clothing with stores mostly in the West, a mail order catalog and a great web store at www.rei.com. REI is different from most retailers in that it is run on the cooperative principle, with most of the profits annually returned to its members in the form of a patronage refund. For many years, REI has been returning 10% on regular purchases. So, if you spend $500 there, you get back $50 at the end of the year. A lifetime membership costs $15, and you can join on the web or at one of the stores. Well, that 10% dividend isn’t exactly the whole story because it only applied to purchases by cash or check. Because of the cost of doing business by credit card, REI paid a lower refund for credit card purchases—around 7-8% Then, several years ago, REI joined with Seafirst Bank of Seattle to issue its own branded Visa card, with a full p
