Trading stamps are premiums or bonuses that a retailer gives with a cash purchase of goods. The usual rate is one stamp for every 10 cents spent. People collect the stamps to exchange them for some item of value or to receive a discount on the retailer’s merchandise. Trading-stamp companies sell the stamps to retailers. They also redeem (exchange) them for various products. Some states prohibit trading stamps. The American businessman Thomas Sperry set up the first independent trading-stamp company in 1896. Though use of trading stamps has declined, they are still given by some companies to stimulate sales.
