Mercator research found that rich reward programs outweigh lower fees and higher credit limits for account satisfaction and card preference. The trend works for all income levels; the study saw that 57% of cardholders viewed more valuable reward programs as a usage driver.
Boost for Customers with More Rewards Day
Chalk one up for Bank of America’s novel “More Rewards Day.” On Nov. 5, Bank of America credit card customers will get a boost, according to a release from BoA. On top of their reward programs, special reward bonuses accumulate for transactions made on that date.
If the Bank of America card is one of the core cashback products, such as Bank of America’s Customized Cash Rewards program, or the Unlimited Cash Reward, the benefit comes in the form of a credit to the cardholder’s account. If the program is tied to an airline co-brand with Alaska Air or Air France, the reward comes as miles.
There is no cap on the benefit’s limit, other than the credit line, as the rules indicate:
- You may use all your available credit lines. Please visit your account details in the Mobile Banking app or Online Banking to see your current available credit.
If the consumer or a small business card does not carry a rewards program, the plastic will still generate 2% cashback on Nov. 5.
Perfect Timing for Credit Card Rewards
Timing for More Rewards Day is perfect as we approach the winter holiday season, with a recession on the horizon. The program is clever, brings attention to Bank of America’s credit card business, and presents a meaningful benefit for cardholders. The complete program details can be found here.
Bank of America launched the credit card business with the BankAmericard in 1958. Innovation in payment card rewards is nothing new at Bank of America. The company re-engineered its rewards program last year to provide enterprise rewards, with a clever strategy, driven by deposits.
My favorite reward innovation from BoA dates back to 2005, with their “Keep the Change,” which generates savings by rounding up, but Rewards Day will surely spawn some copycat programs in credit card payments.
Overview by Brian Riley, Director, Credit Advisory Service at Mercator Advisory Group.
