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Visa to launch rewards program for signature debit

December 3, 2002

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SAN FRANCISCO -- Visa USA is launching a program in 2003 to boost signature-based usage of its debit cards by rewarding customers with free dinners, video rentals and tickets to special events, according to a report in the San Francisco Business Times.

"Our market research shows that there is high demand for a points-based Visa rewards program -- especially in the debit and small-business arenas," wrote Carl Pascarella, Visa president and chief executive, in a letter to member banks last month.

Visa said the program is designed to boost usage of its debit cards and will be in addition to existing promotions that are common among large card issuers.

"The program will be easy to implement for card issuers," said Elizabeth Buse, executive vice president of new market development and deployment.

Visa is building the infrastructure for the program and will use its  marketing muscle to promote the program when it launches in the second quarter of next year.

Visa, which has been working on the program for the past year, declined to discuss how much is being spent on the new rewards program.

Most member banks are expected to participate in the program, according to the Business Times.

"We are supportive of Visa's new rewards program," said Steve Andrews, president of Bank of Alameda, which spent part of this year converting its ATM card holders over to the Visa debit card.  "We believe this participation will encourage usage, which translates to profits that flow directly to our bottom line."