CHICAGO MasterCard International Inc. is hoping to dispel consumer confusion about debit products with a new brochure and educational campaign developed with a U.S. government agency.
The campaign, announced here during the American Bankers Association National Bank Card Conference, responds to research showing that consumers don't understand how debit cards work.
The bank card industry is mainly to blame for this state of affairs, according to the New York-based card association.
"Debit has not been positioned right," conceded Arthur D. Kranzley, general manager of MasterCard's debit services and chief executive of its Maestro U.S.A. debit affiliate.
MasterCard is hoping to rectify the industry's marketing tubs by issuing "millions" of the new informational brochures. It has already produced 250,000.
The next step is delivering the pamphlets to consumers with the help of the Consumer Information Center of the U.S. General Services. which was established in 1970 to help federal agencies develop, promote, and distribute consumer information to the public.
The Extension Service of the U.S. Department of Agriculture will distribute MasterCard's brochure called, "Shopping With Your ATM Card," through its 3,000 offices across the country. The partnership represents the first time MasterCard has cosponsored consumer education materials with a federal agency.
This latest effort is part of MasterCard's overall push to redefine how consumers perceive debit. Earlier this month. the association unveiled "The Complete Debit POgram;' and renamed its off-line debit product MasterMoney.
MasterCard's research revealed that educating consumers will increase the use of debit products. For example, a recent survey showed that 65% of consumers say they want debit cards, compared with previous surveys in which only 25% to 40% of the respondents desired a debit card.
The difference between the two groups, according to MasterCard, is that the former group received better information on debit.
"A huge consumer need exists for information about POS debit, and education is the key to unlocking the potential of this business," said Mr. Kranzley.
The new brochure, subtitled "A Consumer's Guide to the Expanding Uses of ATM Cards," includes tips on managing money, information on merchant acceptance, how to apply for an ATM card. and how to make best Use of the card.
In the coming weeks, the association said it plans to launch print and broadcast media advertisements as well as name a national spokesperson.
In addition, the brochure will be promoted in the Consumer Information Catalog, produced quarterly by the Consumer Information Center for distribution to schools, libraries. consumer groups and federal and congressional offices.
