New research reveals that five years after the passage of the Durbin Amendment, debit rewards programs have rebounded such that 50-60% of financial institutions in the USA are offering debit rewards in one form or another.
Mercator Advisory Group’s latest report, Top 50 U.S. Retail Banks and Credit Unions’ Debit Rewards and Loyalty Programs: 2014 Annual Review, says consumers find far too much value in debit rewards for retail banks and credit unions to eliminate them.
Instead, financial institutions are targeting the right rewards to the right consumer and trending toward real-time redemption of discounts and other rewards and toward implementation of mobile apps, mobile couponing, and location-based rewards. It is clear that both retail banks that are regulated by the Durbin Amendment and those that are exempt continue to provide debit rewards. Smaller financial institutions have in fact increased their offering of debit rewards.
Larger financial institutions are standing their ground, for the most part, with a few more or less offering debit rewards.
Mercator also noted consumers prefer cash rewards first and foremost on debit cards, and then traditional points or miles second. Issuers’ strong preference for merchant-funded rewards programs over traditional issuer-funded points programs is also evident.
Companies mentioned in the Mercator report include: Affinity Solutions, American Airlines Federal Credit Union, America First Credit Union, Bank of America, BB&T, Buzz Points, Cardlytics, Cartera Commerce, Disney, Dynamics, Edo Interactive, Golden 1 Credit Union, JPMorgan Chase, Linkable Networks, PNC Bank, Pulse, RewardsNOW, San Diego County Credit Union, SchoolsFirst Credit Union, SunTrust, TD Bank, Truaxis (MasterCard), U.S. Bank, Welcome Real-time, and Wells Fargo.
For data, background and forecasts on Debit Rewards: Search CardWeb.com’s CardFlash® Library of more than 58,000 archived articles; Access CardWeb.com’s CardData® for current and historical Performance, Portfolios, Profiles, etc. Visit RAM Research® (ramresearch.com) for quarterly and annual forecasts covering more than 150 metrics. [complimentary or deeply discounted access to CardWeb.com subscribers].
Additional database resources include CardWeb.com’s CardExecs® – comings & goings of payments movers & shakers; CardWeb.com’s CardWatch® – ears & eyes on marketing globally (57K items); and CardWeb.com’s CardPixes® – form & function of card design (7K items).