WARMINISTER, Penn.-With BofA's $5 debit charge firmly planted in the minds of many consumers, Freedom CU is giving that same amount back to its members for using the CU's debit card.
The $500-million credit union will be paying members $5 each month they make a purchase with their debit card up to one year.
"Five dollars is what you are hearing from the big banks as the average debit card fee," said Kirby Wood, marketing manager. "The banks are taking that out of consumers' pockets. We thought we'd go the other way and put it back."
The credit union's "It Pays to Switch" campaign is being featured on billboards in and around Philadelphia. The campaign also is promoted via direct mail, search engine advertisements, and social media updates on Facebook and Twitter.
The offer is good for existing members and new members who open Freedom's Free Interest Checking that charges no fees, carries no minimum balance requirement, and pays .25% interest. Wood said that pricing has been in place and no alterations have been made for the promo.
Wood said membership is on the rise at the credit union the past two months. "I'd like to think it is just because of our marketing efforts, but the interchange amendment and the banks imposing fees are setting the table nicely for us. Whatever promotion we do seems to work better now. We think this $5 offer is a bold statement and will really differentiate us."
Bank debit fees are becoming engrained in consumers' minds, observed Wood, who conducted his own, impromptu research while running a booth for the credit union at a local hospital event.
"We were promoting our $5 payback and every time I talked about our offer people knew about Bank of America's charge. I must admit I was surprised, consumers are well aware of what the banks are doing."
