News

USAA bank eliminates debit rewards program

July 14, 2011

According to Colloquy, San Antonio-based USAA Bank, which serves U.S. military members and their families, is eliminating its debit card rewards program, which is being seen as another casualty of the Durbin Amendment. The program will end on September 1.

The Durbin Amendment requires a cap on interchange fees, which reduces the revenue banks receive from merchants when customers use debit cards. The reduction in fees prompted the bank to re-evaluate the value of its debit reward offerings.

David Bohne, USAA Bank president, said customer research performed internally 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," Bohne said.

The bank's credit card rewards program will not change, and any rewards customers have accumulated through the debit card program will be eligible for redemption or a cash payout later this year.