The Durbin Amendment hasn’t decimated debit rewards as was expected. Consumers find far too much value in debit rewards for retail banks and credit unions to eliminate them. Instead, financial institutions are targeting the right rewards to the right consumer and trending toward real-time redemption of discounts and other rewards and toward implementation of mobile apps, mobile couponing, and location-based rewards. It is clear that both retail banks that are regulated by the Durbin Amendment and those that are exempt continue to provide debit rewards. Smaller financial institutions have in fact increased their offering of debit rewards. Larger financial institutions are standing their ground, for the most part, with a few more or less offering debit rewards. Mercator Advisory Group’s report, Top 50 U.S. Retail Banks and Credit Unions’ Debit Rewards and Loyalty Programs: 2014 Annual Review, provides an update on trends in debit cards and debit rewards. It includes primary data on consumer usage and attitudes, a survey of details of the top 50 FIs’ programs, a look at merchant-funded discount networks (MFDNs), changes in debit rewards among smaller versus larger retail banks and credit unions, and what to expect in rewards in 2015.

1. Debit Profits Under Pressure:
Alternative Revenue Models Needed
August 2014

2. 2015 Mercator Advisory Group
The Durbin Amendment hasn’t decimated debit rewards as was expected.
Consumers find far too much value in debit rewards for retail banks and
credit unions to eliminate them. Instead, financial institutions are targeting
the right rewards to the right consumer and trending toward real-time
redemption of discounts and other rewards and toward implementation of
mobile apps, mobile couponing, and location-based rewards. It is clear that
both retail banks that are regulated by the Durbin Amendment and those
that are exempt continue to provide debit rewards. Smaller financial
institutions have in fact increased their offering of debit rewards. Larger
financial institutions are standing their ground, for the most part, with a few
more or less offering debit rewards.
Top 50 U.S. Retail Banks and Credit Unions’ Debit
Rewards and Loyalty Programs: 2014 Annual Review

3. 2015 Mercator Advisory Group
Mercator Advisory Group’s latest report, Top 50 U.S. Retail Banks and
Credit Unions’ Debit Rewards and Loyalty Programs: 2014 Annual
Review, provides an update on trends in debit cards and debit rewards. It
includes primary data on consumer usage and attitudes, a survey of details
of the top 50 FIs’ programs, a look at merchant-funded discount networks
(MFDNs), changes in debit rewards among smaller versus larger retail
banks and credit unions, and what to expect in rewards in 2015.
This research report reveals that five years after the passage of the Durbin
Amendment, debit rewards programs have rebounded such that 50–60% of
financial institutions in the United States are offering debit rewards in one
form or another. Research finds that consumers prefer cash rewards first
and foremost on debit cards, and then traditional points or miles second.
Issuers’ strong preference for merchant-funded rewards programs over
traditional issuer-funded points programs is also evident.
Top 50 U.S. Retail Banks and Credit Unions’ Debit
Rewards and Loyalty Programs: 2014 Annual Review

4. 2015 Mercator Advisory Group
• Understanding the evolving consumer trends related to debit cards
• Consumer trends that lead to greater debit card usage
• Merchant-funded discount network from an issuer perspective
• Debit rewards interest growing among smaller financial institutions
• Notable changes in debit rewards for top 50 issuers between 2013
and 2014
• What to expect in debit rewards in 2015
Highlights of this Research Report include:

5. © 2014 Mercator Advisory Group

6. About the full Research Report:
2015 Mercator Advisory Group
This report has 24 pages, 8 exhibits, and 2 appendixes with reward program details.
Companies mentioned in this report include: Affinity Solutions, American Airlines Federal
Credit Union, America First Credit Union, Bank of America, BB&T, Buzz Points, Cardlytics,
Cartera Commerce, Disney, Dynamics, Edo Interactive, Golden 1 Credit Union, JPMorgan
Chase, Linkable Networks, PNC Bank, Pulse, RewardsNOW, San Diego County Credit Union,
SchoolsFirst Credit Union, SunTrust, TD Bank, Truaxis (MasterCard), U.S. Bank, Welcome
Real-time, and Wells Fargo.
Members of Mercator Advisory Group’s Debit Advisory Service have access to these
reports as well as the upcoming research for the year ahead, presentations, analyst access,
and other membership benefits.
For more information and media inquiries, please call Mercator Advisory Group's main line:
(781) 419-1700, or send e-mail to media@mercatoradvisorygroup.com.
For free industry news, opinions, research, company information and more visit us at
www.PaymentsJournal.com.
Follow us on Twitter @ http://twitter.com/MercatorAdvisor.

7. About Mercator Advisory Group
Mercator Advisory Group is the leading independent research and advisory
services firm exclusively focused on the payments and banking industries. We
deliver pragmatic and timely research and advice designed to help our clients
uncover the most lucrative opportunities to maximize revenue growth and
contain costs.
Our clients range from the world's largest payment issuers, acquirers,
processors, merchants and associations to leading technology providers and
investors. Mercator Advisory Group is also the publisher of the online
payments and banking news and information portal PaymentsJournal.com.
2015 Mercator Advisory Group