Prepaid Debit Card Reviews, Complaints, Etc

Tag: debit card marketing

  • Banks Are Falling In Love With the Debit Card All Over Again

    Banks Are Falling In Love With the Debit Card All Over Again

    When financial reform targeted the lucrative overdraft and interchange/“swipe” fees, the banking industry began to move away from debit cards, but now banks are singing a different tune. With new Federal Reserve data showing that caps on swipe fees are working as intended, banks are going a different route to make up for the lost revenue: volume. Targeting tech savvy millenials, banks are marketing debit cards now more aggressively than ever; even resurrecting rewards programs in some areas.

    Last year, banks sent out 42 million direct-mail offers for new debit cards, up 6% from 2011 according to Mintel Compermedia. “It does appear that banks have regained their footing to some degree and are beginning to focus on debit card marketing,” says Susan Wolfe, vice president of research at Mintel Compermedia. Numbers don’t take into account the exponential rise in online marketing that’s taking place. With online marketing being far more cost effective than direct-mail, actual numbers are probably a lot higher.

    “Interestingly, banks are promoting online banking, mobile banking and text banking as ways to stay on top of debit card spending,” Wolfe says. “Debit is also positioned as a better way to manage finances,” since users can keep track of account balances in real time via text or email alerts on their cell phones.

    While debit card usage is up, credit card usage among 18-24 year-old college undergraduate students fell by 10% in just two years. Millenials are more money-conscious now, opting for debit card rewards, rather than credit card fees charging them to use their own money.

    For more information on this story, visit: http://business.time.com/2013/03/28/why-banks-love-debit-cards-again/

    For more from this author visit:  Tameka Riley’s Author Page

  • Durbin Amendment Not Slowing Debit Card Marketing

    Durbin Amendment Not Slowing Debit Card Marketing

    With the estimated 42 million offers for new debit cards that hit American homes in 2012, it’s no wonder how debit cards remain the most popular plastic payment type among Americans. In 2012, debit purchase volume jumped 12%, versus an increase of only 8% for credit card purchases.

    Comperemedia reports that bank offers for new debit cards increased over 6%, despite the October 2011 Durbin Amendment which caps debit swipe fees and profitability for banks. While direct marketing volumes are up only slightly, it’s taken two years for banks to determine how to tackle debit cards, resulting in new ad content that has changed drastically. Consumers are now encouraged to use debit cards for security and convenience for everyday purchases. High value incentives have become a thing of the past, replaced by incentives with a much lower value while reward programs entice customers to take advantage of new card features.

    “Banks have a vested interest in increasing debit card usage, as increasing volumes will increase revenue,” said Susan Wolfe, VP of research at Mintel Comperemedia. “Getting customers to use their debit cards throughout their day could have a big impact in transaction volumes and thus the revenue.”

Prepaid Debit Card Reviews, Complaints, Etc