Prediction #2: Merchants Will Be Key

Bartlett, Michael
February 2011
Credit Union Journal;2/21/2011, Vol. 15 Issue 8, p16
Trade Publication
The article presents the prediction of Sara Petty, vice president of client development for the Members Group Inc., on the role of merchant-funded rewards when the new interchange provisions are carried out in the U.S. According to Petty, credit and debit rewards programs will remain the same and will not be greatly affected by the new policy. She predicts a domino effect due to marketplace competition involving financial institutions under the 10 billion threshold.


Related Articles

  • Prediction #1: Card Rewards To Grow. Bartlett, Michael // Credit Union Journal;2/21/2011, Vol. 15 Issue 8, p16 

    The article presents the prediction of Tom Gandre, executive vice president for PSCU Financial Services Inc., on the changes in interchange transactions and its impact on credit reward programs of credit unions (CUs) in the U.S. According to Gandre, credit cards and credit card reward programs...

  • Five Reasons Why Durbin Rules Will Add To Need For Rewards. Bartlett, Michael // Credit Union Journal;2/21/2011, Vol. 15 Issue 8, p17 

    The article describes five reasons why Durbin Amendment rules in the U.S. will enhance the value of debit and credit rewards programs.

  • Rewards Programs: The New Credit Card Battlefield. Windish, Joe // Moderate Voice;2/23/2010, p10 

    The article focuses on the rewards programs of credit cards. It says that credit cards have a profit shift from penalties to rewards. It mentions that previously banks make money on interest-rate increases and fees. It tells that the best customers for credit card issuers are people who the...

  • Australia: Reserve Bank keeps card regulations.  // MarketWatch: Financial Services;Oct2009, Vol. 8 Issue 10, p6 

    In this article the author discusses the decision of Reserve Bank of Australia's Payment Systems Board (PSB) to retain the regulations on interchange fees paid during card transactions. He points out that PSB imposes a reduction of fees on Visa or MasterCard transactions but has set back its...

  • PNC Scales Back Rewards, Cuts Bonus Points. Finkle, Victoria; Witkowski, Rachel // American Banker;5/29/2012, p5 

    The article discusses plans by financial company PNC Financial Services to scale back bonus points its debit- and credit-card customers can earn on purchases. Analyst Marty Mosby of Guggenheim Partners says many banks have curtailed their rewards programs following the imposition of caps on...

  • Interchange Doomsday Never Came. Kahr, Andrew // American Banker;3/6/2012, Vol. 177 Issue 35, p9 

    The article argues that interchange fees are like a hidden sales tax which make purchases more expensive and disproportionately benefit heavy spenders in debit or credit card reward programs. Why the U.S. has the highest credit interchange rates among 13 countries and how interchange fees affect...

  • Durbin Amendment Shakes Up Debit Rewards. Totty, Patrick // Credit Union Magazine;May2012, Vol. 78 Issue 5, p52 

    The article focuses on the impact of the Durbin amendment to the U.S. Dodd-Frank Wall Street Reform and Consumer Protection Act of 2012. Credit Union 24 Inc. executive vice president Mansel Guerry says that it restricts debit interchange fee income for large financial institutions. It states...

  • Regions Suspends Debit Rewards Program. Lepro, Sara // CardLine;3/4/2011, Vol. 11 Issue 9, p29 

    The article offers information on the suspension of the debit rewards program by Regions Financial Corp. It states that the suspension is the result of reduced interchange revenue from pending rate caps proposed by the U.S. Federal Reserve Board. It mentions that the banks will not accept the...

  • Getting Merchants To Foot The Bill For Card Rewards. Johnson, Andrew // CardLine;5/28/2010, Vol. 10 Issue 22, p6 

    The article reports on the move of issuers to pass on more of the costs of rewards programs to merchants on the threat of increasing interchange fees in the U.S. According to Beth Robertson of Javelin Strategy and Research, rewards should be reformed in order to appropriately target rewards to...


Read the Article


Sorry, but this item is not currently available from your library.

Try another library?
Sign out of this library

Other Topics