Mercator research found that rich rewards programs outweigh lower fees and higher credit limits for account satisfaction and card preference. The trend works for all income levels; the study found that 57% of cardholders viewed more valuable rewards programs as a driver of usage.
A boost for customers with More Rewards Day
Fall in love with Bank of America’s “More Rewards Day” novel. On November 5, Bank of America credit card customers will get a boost, according to a statement from the BoA. In addition to their rewards programs, special reward bonuses accrue for transactions made on this date.
If the Bank of America card is one of the main cashback products, such as Bank of America’s personalized cash rewards program or unlimited cash reward, the benefit is in the form of a credit on the cardholder’s account. If the program is linked to an airline co-brand with Alaska Air or Air France, the reward is in the form of miles.
There is no cap on the limit of the benefit, other than the line of credit, as stated in the rules:
- You can use all your available credit lines. Please check your account details in the Mobile Banking or Online Banking app to see your current available credit.
If the consumer or a small business card does not offer a rewards program, the plastic will still generate 2% cashback on November 5th.
Perfect time for credit card rewards
The timing of More Rewards Day is perfect as the winter holiday season approaches, with a recession on the horizon. The program is smart, draws attention to Bank of America’s credit card business, and has a significant benefit for cardholders. Full program details are available here.
Bank of America launched the credit card business with the BankAmerican in 1958. Innovation in payment card rewards is nothing new at Bank of America. The company revamped its rewards program last year to offer corporate awardswith a shrewd, deposit-driven strategy.
My favorite BoA award innovation dates back to 2005, with their “Keep the changewhich generates savings by rounding up, but Rewards Day will surely spawn copycat programs in credit card payments.
Preview by Brian RileyDirector, Credit Advisory Services at Groupe Conseil Mercator.