PaymentsJournal
No Result
View All Result
SIGN UP
  • Commercial
  • Credit
  • Debit
  • Digital Assets & Crypto
  • Digital Banking
  • Emerging Payments
  • Fraud & Security
  • Merchant
  • Prepaid
PaymentsJournal
  • Commercial
  • Credit
  • Debit
  • Digital Assets & Crypto
  • Digital Banking
  • Emerging Payments
  • Fraud & Security
  • Merchant
  • Prepaid
No Result
View All Result
PaymentsJournal
No Result
View All Result

Are Debit Rewards Back in Vogue?

By Sarah Grotta
May 30, 2018
in Analysts Coverage
0
1
SHARES
0
VIEWS
Share on FacebookShare on TwitterShare on LinkedIn
debit

debit

Rewards on debit card transactions have become less available, watered down, converted to merchant-funded program or promoted within a relationship rewards scheme that also considers other banking transactions and activities.  Larger financial institutions that saw millions in revenue disappear after Dodd-Frank were the first to retract debit rewards.  Smaller institutions that retained full interchange revenue levels were able to continue to offer debit rewards and promote them as a differentiating factor.  With downward pressure on interchange more recently across the board and the expense of managing a debit card portfolio rising, there has been a strain on maintaining rewards for institutions of all sizes.  So it seems an odd time for large banks to be getting back into the debit rewards game, but a few examples have emerged as reported in a PaymentsSource article:

Citigroup Inc. is considering the idea, as well as other types of rewards for checking and savings accounts, to entice customers to sign up for its fledgling online bank, which it began to roll out nationwide earlier this year.

Instead of offering higher rates to attract deposits, Citigroup will work with retailers it already partners with — such as American Airlines Group Inc. — to tailor rewards to existing credit-card customers, encouraging them to open new accounts, Stephen Bird, chief executive officer of Citigroup’s global consumer bank, said at a conference in New York Tuesday.

“They are self-selected members of the American Airlines club and they love miles,” Bird said. “Until now, nobody has said to them, ‘Why don’t you earn those same miles on your checking and savings accounts?’ You’re going to be able to do that.” 

Offering rewards on both credit and debit, and thereby rewarding most of a consumer’s spend can be meaningful.  Discover is offering cash back on both credit and debit cards also.  Will other banks follow?

Overview by Sarah Grotta, Director, Debit and Alternative Products Advisory Service at Mercator Advisory Group

1
SHARES
0
VIEWS
Share on FacebookShare on TwitterShare on LinkedIn
Tags: Debit Rewards

    Get the Latest News and Insights Delivered Daily

    Subscribe to the PaymentsJournal Newsletter for exclusive insight and data from Javelin Strategy & Research analysts and industry professionals.

    Must Reads

    Embedded Finance

    Embedded Finance: Bringing Payments Under a Single Umbrella

    July 14, 2025
    Making Real-Time Payments a Reality

    Fulfilling the Promise: Making Real-Time Payments a Reality

    July 10, 2025
    mortgage

    The Rich Benefits of In-House Payment Systems

    July 9, 2025
    digital cards

    Beyond Plastic: Why Digital Cards Are the Future

    July 8, 2025
    What Premium Card Overhauls by Chase and Amex Reveal About the Credit Card Market

    What Premium Card Overhauls by Chase and Amex Reveal About the Credit Card Market

    July 7, 2025
    Rewire Acquires Imagen, Looking at Prepaid Cards for Migrant Workers

    Smells Like Team Spirit: What Makes Cobranded Credit Cards Work

    July 3, 2025
    uk banking outages

    New Continuous Strategies for Battling Account Takeovers

    July 2, 2025
    Fraud Monitoring

    What to Expect When Nacha’s Fraud Monitoring Rules Take Effect

    July 1, 2025

    Linkedin-in X-twitter
    • Commercial
    • Credit
    • Debit
    • Digital Assets & Crypto
    • Digital Banking
    • Commercial
    • Credit
    • Debit
    • Digital Assets & Crypto
    • Digital Banking
    • Emerging Payments
    • Fraud & Security
    • Merchant
    • Prepaid
    • Emerging Payments
    • Fraud & Security
    • Merchant
    • Prepaid
    • About Us
    • Advertise With Us
    • Sign Up for Our Newsletter
    • About Us
    • Advertise With Us
    • Sign Up for Our Newsletter

    ©2024 PaymentsJournal.com |  Terms of Use | Privacy Policy

    • Commercial Payments
    • Credit
    • Debit
    • Digital Assets & Crypto
    • Emerging Payments
    • Fraud & Security
    • Merchant
    • Prepaid
    No Result
    View All Result