Co-op Financial Services is enabling credit unions to offer a merchant-funded rewards program tied to their debit and credit cards, leveraging an online shopping portal to earn cash back for members.
Co-op is offering the program, ShoppingFLING, in partnership with RewardsNow, a Dover, N.H.-based loyalty-program provider. It will enable participating credit unions to offer members added valued to further differentiate their checking accounts from banks charging fees, Co-op said in a press release.
“Merchant-funded rewards really give the credit-union industry a way to offer rewards, compete with bigger banks, and grow their card portfolios and transaction volume,” Kathy Herziger-Snider, Co-op vice president of product development, tells PaymentsSource.
Cardholders may access ShoppingFLING directly from their participating credit union’s website. Members earn cash back for shopping online or in stores, and they can take advantage of special deals by using their credit union-issued debit or credit card. Some 600 merchants, including Nine West Inc. and the National Football League, participate in the program, Herziger-Snider says.
Cash-back rewards vary by retailer. There is no fee for credit unions or consumers to participate in the program.
Co-op Financial is offering marketing support to help credit unions promote the program. Credit unions may use ShoppingFLING as a standalone program or in addition to an existing one, Herziger-Snider says.
The credit union service organization is offering merchant-funded rewards at a time when credit unions are adding more members in the aftermath of larger banks adding more fees. While larger banks have begun to drop plans to add debit fees, consumers are still looking to escape other charges, Herziger-Snider notes
“Times are tough, and consumers are fed up with the fees,” she says. “Credit unions are looking to service their members and are not focused on stock [prices] and profit.”
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