Payment Industry Insider

The Cards & Payments June 2008 issue had a great article on “Rethinking Rewards.”  It talks about how issuers in US are updating their rewards program to reflect changes in the economy and consumer behavior.

Some of the additions considered are incentives such as cash back bonuses for paying credit card bills on time.  In addition, more and more financial institutions are offering debit and credit combined rewards participation.

Although the focus of the article is for issuers to start thinking about their product offering as downward pressure on interchange fees will make it harder to fund rewards programs - credit unions are at an advantage here.

Credit cards offered by credit unions have all the benefits and advantages that consumers look for.  Better interest rates, no obnoxious late or overlimit fees, no penalty pricing at 24.99%, hardly any annual fees, rewards program, rebate program, better service, personalized service, etc.

To offer a successful credit card program, it takes a combination of all the benefits. A rewards program alone is not going to be successful if you don’t have a decent rate - or when you charge a hefty annual fee.

Banks have always looked at each product or service as a way to increase revenue, while credit unions have looked at products and services to cost effectively increase member benefits.

Continue to offer a complete package to your member - that is your credit union advantage!