Financial institutions will likely soon face significant reductions in debit card interchange revenue, but that hasn't stopped Bank of Internet USA, a unit of BofI Holding Inc. of San Diego, from launching a program in which customers will receive cash back on purchases initiated with its Visa check cards.
The free, merchant-funded purchase rewards program was announced Wednesday.
The savings bank is offering rewards based on cardholder spending patterns, and it promotes new offers when cardholders log into Bank of Internet's online banking site.
To use the service, customers click on the icons to load the offers, which they then automatically access when using their card. Bank of Internet will credit the customer's account for the offers they redeem at the end of the month.
"We believe this will drive debit card usage and increase retention of our customer base," Greg Garrabrants, BofI's president and chief executive, told analysts Wednesday during a conference call to discuss its earnings.
