Credit Card News
Advertising Disclosure
Credit-Land.com is an independent, advertising-supported web site. Credit-Land.com receives compensation from many credit card issuers whose offers appear on our site. Compensation from our advertising partners impacts how and where their products appear on our site, including, for example, the order in which they may appear within review lists. Credit-Land.com has not reviewed all available credit card offers in the marketplace.
Credit Card Applications » News » Other » Debit Card Reform Casualty: USAA Bank

Debit Card Reform Casualty: USAA Bank

By
Add to Favorites:
Debit Card Reform Casualty: USAA Bank

USAA Bank, which provides banking services to military personnel and their families worldwide, announced last week that its debit card customers will be adversely affected by the new debit card interchange fees, otherwise known as the new swipe laws.

USAA released a statement last week, after the Federal Reserve announced its final rules on interchange fees which go into effect October 1, saying that USAA will end its debit cards reward program as a direct reaction to the new cap on interchange fees. The bank claims that by eliminating the debit card rewards program, it will be able to keep its other services, such as free checking, available to its customers.

Banks across the nation are expecting a big drop in revenue as a result of the new rules. Debit card swipe fees will now be capped at 21cents to 24 cents versus an average of 44 cents before the rules changed.

Current Program

Currently, USAA’s debit card reward program assigns one point for every $2 the card holder spends. Points are accumulated and can be redeemed for various types of merchandise, discounts, gift cards and even cash. Card holders can cash in every 3,000 points for $25 in cash. Debit card holders will not lose any points already accumulated.

Pick Your Battles

USAA conducted a study of its members to see which services they wanted to keep if the bank could not afford to continue all of its programs. According to David Bohne, president of USAA bank, “We carefully considered all options and surveyed members when we began assessing the financial impact of the provision. USAA’s survey found that members favored free checking and ATM fee refunds over debit card rewards. Based on this feedback, we decided to stop the debit card rewards to maintain the other benefits.” The debit reward program will end September 1.

Sometimes, it is about picking your battles, and it seems that USAA listened to what its members had to say and made a sound decision for both its customers and its banking branch of the organization.

Add to Favorites:

Related News:

Global Fraud On Hackers To-Do List This Season

By Dar Dowling, Posted: December 2, 2016

With the holiday shopping season upon us, retailers around the world can expect a 12% bump in online fraud when compared with data from the holiday season last year. Continue reading
Chase Pay Launched

By Dar Dowling, Posted: December 1, 2016

Chase Pay, the new digital payment system from Chase, is now open for business. Chase Pay lets people pay for purchases with their credit cards. Continue reading
Blowing The Holiday Budget is a Holiday Tradition

By Dar Dowling, Posted: November 30, 2016

If year after year you find your self overspending at holiday time you are not alone, with eight out of 10 consumers (78%) indicating that they are in the same boat. Continue reading
Get the latest news, articles and expert advice delivered to your inbox. It's FREE.
Get 0% Intro APR on Balance Transfers and Purchases for 21 months. After that, the APR will be 12.24%-22.24% based upon your creditworthiness.
For Excellent/Good Credit
Earn 1% cash back on gas and grocery purchases. Terms apply.
For Fair Credit
Guaranteed $500 Unsecured Credit Limit
For Bad Credit