Rewards offered with traditional debit cards are still available from large and small financial institutions but are on the decline as debit card issuers look to cut costs in the face of ever smaller product margins. Forty percent of U.S. consumers surveyed by the author indicate that they are receiving rewards with their debit card today.
The author’s latest research report, Debit Card Rewards: Taking a Focused Approach, discusses new competition faced by debit card issuers and suggests how then can keep their programs motivating yet cost-effective.
"Consumers today may have a more difficult time finding debit cards rewards from traditional financial institutions, but digital-only or challenger banks and merchants are filling the void. Some consumers, particularly those in younger demographic segments, which financial institutions want as customers, appear motivated to spend more in the pursuit of rewards and are taking their transactions and balances to these alternative payment options," comments the author of the report.
Highlights of the report include:
- Review of the types of rewards that financial intuitions are providing to their cardholders
- Survey of debit card rewards programs of large financial institutions, institutions below $10 billion in assets, and digital-only banks.
- Survey of merchant segments with merchant-provided rewards
- A discussion of approaches that financial institutions can take to support rewards on debit cards through a narrower focus on customers most likely to benefit and be motivated by them.
1. Executive Summary
3. Consumer Perceptions of Debit Rewards
4. The Motivated Debit Rewards User
5. Predominant Reward Types
- Cash Back
- Points Programs
- Merchant Offers/Discounts
6. Survey of Debit Rewards Programs
- Survey of Large Banks and Credit Unions Offering Debit Rewards
- Survey of Smaller Banks and Credit Unions Offering Debit Rewards
- Survey of Digital-Only Banks
7. New Competition for Debit Rewards Programs
- Related Research
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- Axos Bank
- Bank of America
- Consumers Credit Union
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- Farmer’s State Bank
- Fifth Third Bank
- First United Bank and Trust
- Green Dot Bank
- JP Morgan Chase
- PNC Bank
- Randolph Brooks FCU
- Schools First FCU
- Security Service FCU
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