Not to be outdone by rivals in a month that has seen what may be a record number of new and retooled credit card rewards program announcements, Bank of America Corp. on Aug. 31 rolled out noteworthy upgrades to a couple of its core cash-rewards cards.
And like Capital One Financial Corp.’s newest cash-back credit card, BofA’s latest entry features a twist designed to stem attrition in the hotly competitive rewards-card category.
To encourage cardholders to broaden their relationship with BofA, BankAmericard customers who earn rewards may earn an additional 10% bonus on their rewards when they transfer them to a BofA checking or savings account, a BofA spokesperson tells PaymentsSource.
“With this new feature we’re focused on giving extra rewards to customers who bring more business to the bank,” the spokesperson says.
Cap One on Aug. 23 unveiled the Capital One Cash card, requiring customers to stick around for a year to capture the maximum rewards (
Analysts say card issuers this summer are turning up the heat on card-rewards offers to compete in what has become an aggressive race to lure customers and possibly woo them away from using increasingly less-lucrative signature-debit cards (
The Charlotte, N.C.-based bank is relaunching its BankAmericard Cash Rewards Visa card for consumers by boosting its rewards-earning rate from 1% cash back on all purchases to include 2% back on grocery store purchases and 3% back on gasoline purchases.
Consumers may earn the cash-back rewards up to the first $1,500 spent each quarter on groceries and gasoline; after reaching that limit all purchases generate 1% cash back.
BofA’s companion card for small-business customers, the Cash Rewards for Business MasterCard, rewards cardholders with 1% cash back on all purchases, plus 2% on restaurant purchases and 3% on purchases at office supply stores, as well as purchases of gasoline and computer network services.
The business card has no caps on earning rewards in specific categories.
BofA developed the program based on customer research that showed consumers wanted to be rewarded for specific purchases year-round in certain categories, Susan Faulkner, a BofA consumer banking products executive, said in a press release.
The bank reintroduced its iconic Bank Americard brand “about five years ago,” and the rewards program “has continued to evolve,” the spokesperson said.
What do you think about this? Send us your feedback.
