One percent is no longer enough

Can a credit union “buy” a member’s love and loyalty? Perhaps not, but if they want to try, card rewards are the single biggest currency the cooperative has at its disposal.

This is particularly true for credit unions chasing the affection of the digital shopper. Because online purchasers are often value seekers, they are big-time fans of cash-back rewards. These individuals want very much to extend the value of the money they are spending, and they often view cash back as a way to do precisely that. This is why e-commerce giants like Amazon and PayPal are upping the ante on the amount of cash coming back to their credit cardholders.

Amazon Prime Store Card offers 5% back on all purchases (on or off Amazon). With the PayPal Cashback Mastercard, cardholders earn 2% cash back.

An accepted truth in the credit card game is that a rewards program is only as effective as its redemption rate. Simply put, if a card member isn’t using her rewards, they certainly aren’t that motivating. And according to, 31 percent of credit cardholders in the U.S have never redeemed their credit card rewards.


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