Taking a cue from c0branded programs that give cardholders back a portion of what they spend, Visa U.S.A. has started a rewards program of its own.
For every $1 spent on a Visa classic or gold credit or debit card, the cardholder will earn a 10-cent credit that can be redeemed for savings on a wide range of products and services.
"This is obviously a major new marketing strategy for us," said Jan Soderstrom, senior vice president for advertising and marketing services at Visa. "We think it's going to raise the stakes in the business."
Participating travel and dining peers for the tint promotion will be announced Oct. 1 when the marketing initiative, called Visa Rewmxls, begins.
Visa customers can earn travel discount credits worth at least 10% of the value of purchases made through Dec. 31. These credits can be applied to dozens of vacation offers from travel merchants.
Next summer, Visa will roll out another major frequent-user program, enabling cardholders over a three-month period to earn discounts at national restaurants.
All future Visa promotional campaigns will be united under the Visa Rewards platform, which will range from national frequent-user programs to dollars-off coupons for branded merchandise to instant savings at nationwide retailing chains.
"It's clearly a brand-equity device," said Michael I. Guidry, senior vice president of First Bank Card Center, First Commerce Corp.'s credit card arm in New Orleans.
Visa Rewards "brings together various promotional things Visa does under a single umbrella," he added.
This fall's debut program is being supported by a multimillion-dollar national television, radio, billboard, and print advertising campaign. Future programs will be supported by extensive marketing campaigns, featuring a Visa ReWards logo.
"It sounds analogous to [MasterCard International's] Master Values program, although that's not across the hoard:' said C0rey 'Stone, a principal with Easton Consultants in Stamford| Conn.
Master Values program, introduced in 1990, offers MasterCard holders 10% to 25% in savings on name-brand products. MasterCard alerts cardholders through statement inserts and freestanding inserts in Sunday newspapers. Nearly 2,000 retailers have participated so far.
Master Values has evolved to encompass a number of MasterCard products, including gold and business cards; specific places, such as factory outlets and malls; and specific users, such people who shop with catalogs, holiday shoppers, and college students.
Like Master Values, Visa Rewards is designed to add value.
The hope is that it will influence the choices people make when deciding to apply for credit cards, Mr. Stone said.
Visa has been running a 30'second TV spot leading up to the October launch that prompts consumers to sign up for a Visa card to take advantage of Visa Rewards.
"The level of competition has risen dramatically," Ms. Sealerstrom said. "We want to reward loyalty and continued usage of the card, and to add value."
