Scott Calliham has joined First Annapolis Consulting Merchant Acquiring as a Principal, bringing with him 15 years’ experience in payments. Most recently with Bank of America for the last seven years, Scott held various positions in both Payments and Strategy and Merchant Services. In Payments and Strategy, he was responsible for several projects focused on payments related initiatives across Bank of America’s Debit, Issuing, and Acquiring businesses. Additionally, Scott spent the last five years in Merchant Services at Bank of America holding multiple roles, including leading Corporate Strategy, Pricing and Portfolio Management, and Product Development and Support. Most recently, Scott was Executive Vice President of Bank of America Merchant Services with responsibility for Emerging Payments and Strategy. Scott was also employed with First Annapolis before Bank of America for the previous seven years. He holds a Bachelor’s Degree from San Jose State University and earned his MBA at Carnegie Mellon University.
TSYS has renewed its agreements with Canadian Tire Financial Services to
process both its payment cards programs, which includes its MasterCard
and private label retail portfolios, and merchant acquiring services.
Under undisclosed terms, TSYS will also provide fraud management, risk
management, portfolio analysis and a rewards/loyalty program for
Canadian Tire, which has been a client of the former since 1998.
Moreover, Canadian Tire operates over 1,160 retail locations serving
nearly 4.6 million Canadian Tire MasterCard accountholders and employing
57,000 Canadians while TSYS outsourced
payment services provides issuer and acquirer processing to
organizations around the world.
First Annapolis has hired Frank Andrews, a fifteen-year veteran of MBNA, as a member of its Card Issuing team. Andrews will focus on serving the evolving needs of partnership finance clients in the affinity, agent, and retail sectors. He brings proven experience in the areas of card marketing, customer research and segmentation, and loyalty/reward program development. At MBNA he held management positions in a variety of partnership market segments, fraud and collections, channel optimization, and card network relationship management. He graduated from the United States Naval Academy and served on active duty in the Navy’s nuclear submarine force. Andrews earned a M.S. in Computer Science from George Washington University.
A new report has calculated that rewards payment cards accounted for 77% of credit card volume in 2005, compared to just 40% in 2001. The research found that credit card spend on rewards card is growing at a CAGR of 31%, compared to 12% for non-reward cards. The white paper by FischerJordan says that basic rewards offerings are becoming a market necessity; no longer a competitive advantage, but instead a commodity. The form says it is clear that program cost containment coupled with commoditization will spur a change in program substance and management. Reengineering will give way to a revision of traditional program economics, including a change in program structure and management. Coalition programs, white labeling, and association rewards will provide the models of industry externalization. The external result of these changes will be that the largest loyalty programs will emerge bigger, permeating multiple industries; while internally, program value will be unlocked, turning a cost center into a profit generating activity.
Seventy percent of high-income earners are more loyal to companies that offer rewards programs. When it comes to redeeming those rewards, more high-income earners prefer to receive cash back (70%), than free travel (62%). Half have “re-gifted” their rewards to others. The survey by St. Louis-based Maritz Loyalty Marketing also found that nearly 90% have been enrolled in a rewards program for two years or more compared to 69% of all survey respondents. Forty-five percent of high-income individuals are enrolled in multiple credit card programs and currently 41% of this demographic group receives credit cards through their main bank. Sixty-four percent of high-income earners would increase business with their main bank if they were rewarded for doing so, representing a huge opportunity for banks to cross-sell their products to customers by offering a bank-wide reward incentive.
Credit card reward programs that take a long time to accumulate points do not work well according to a new report. The research showed that 70% of cardholders leave a loyalty/rewards program due to the length of time it takes to build up points. Maritz Loyalty Marketing says the number jumps to 79% in the 18-24 age group. The Maritz Poll also found that customer defection resulted from other perceived problems with rewards programs, such as: “not being rewarded properly” (23%), “disliked the fee” (22%), “disliked the reward options” (20%), “program rules kept changing” (17%), “poor customer service” (16%) and “other programs seemed better” (18%). More than a quarter of this high-income cardholders left a rewards program because “another company’s program seemed better” or they didn’t like the reward options.