After backing off of the affinity and cobranded credit card market over the past few years, Bank of America Corp. is making comeback with a new AAA Member Rewards Visa credit card loaded with rewards benefits.
Launched March 22, the card provides triple points on qualifying travel and AAA purchases, double points for gas, grocery and drug store purchases, and one point for every dollar spent on all other purchases, according to BofA.
Cardholders may redeem points for vouchers for specific travel experiences, such as visiting the Joe Montana winery or being part of a NASCAR pit crew. Cardholders also may redeem points for vouchers for purchases at AAA branches and for AAA auto repairs, and they may redeem points for 1% cash back starting at 5,000 points, retailer gift cards, travel rewards and merchandise, according to the issuer.
Gas, grocery and drugstore purchases account for about 12% of customer spend, according to Auriemma Consulting Group research. Megan Bramlette, Auriemma director of knowledge management, says the percentage probably is more like 15% of spend for AAA cardholders, who likely travel more than the average consumer.
The AAA Member Rewards card also is one of the first cards to launch of late that is not focused on the premium market, Bramlette notes. “AAA is not a membership that really has allegiances based on credit quality,” she says. “For AAA members, this is a very attractive offer that’s going to be really appealing to most members.”
That the issuer is launching an affinity card with such as strong brand is an indication that it is making a conservative comeback and speaks to the rewards products’ potential, Bramlette says.
“AAA is a premium brand in terms of appeal and its strong affinity program,” she says.
BofA has been conservative in the affinity space, reducing the number of partnerships it has in the past few years. The issuer says it used to have 3,200 and now has 1,600.
However, BofA contends it is still strong in the affinity market. “Bank of America is a leader in the affinity card business, and it remains an important part of our consumer strategy,” a spokesperson tells PaymentsSource.
AAA has been a BofA affinity card partner since 1999 but recently renewed its partnership with the issuer.
“Our strategy was to develop a card with features that specifically appeal to their members,” a BofA spokesperson tells PaymentsSource. “We believe the AAA Member Rewards Visa card delivers some of the richest travel rewards in the industry and provides enhanced value to AAA members.”
BofA will market the card through AAA stores, AAA’s online site and through direct mail, the spokesperson says.
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