Credit Cards » Credit Card News » Savings Get Bigger At Dunkin’ Donuts and the US Postal Service from MasterCard
Date May 5, 2009

Savings Get Bigger At Dunkin’ Donuts and the US Postal Service from MasterCard

Cardholders who participate in MasterCard’s “MasterCard Easy Savings Program” now have two more options for saving money. The latest merchant enrollees include the United States Postal Service and the national retail chain of Dunkin’ Donuts. Eligible card holders who have been enrolled in the program will automatically save 5% on all purchases made through Click N’ Ship, which is available through the United States Postal Service’s website at www.usps.com, where consumers can purchase supplies, print shipping labels, and order or print postage from the comfort of their own home. Customers shopping at Dunkin Donuts will receive a 5% rebate on every purchase made at a Dunkin’ Donuts location, regardless of the item.

The additional rebates received by card holders at these locations are a benefit to participating in the MasterCard Easy Savings Program. The program not only has advantages for the card holder but the merchants involved in the program also find that they benefit from their involvement. The rebate incentives create more buzz about the business and does help them to generate increased revenue. There is also an attraction for new customers who are already members of the program but do not shop at those merchants regularly.

It is estimated that card holders who are members of the MasterCard Easy Savings Program spent up to 60% more at program-enrolled merchants. 70% of eligible members are new customers for MasterCard. That means that the draw of the program is strong for both the card company as well as participating merchant store. And with the state of the economy, customers are certainly more apt to shop where the savings are even if it means shopping at new locations. As many credit card companies are pulling back on the roads extended to their customers, those that continue to offer rewards programs, particularly cash back rebates for using the card continue to thrive.

Date April 29, 2009

Visa Commercials Promote Debit Cards

Visa has noticed the trend of increased debit card use during this recession. They’re running several TV ads that promote Visa debit cards for everything from buying pizza, going to an aquarium with your daughter on a Tuesday, and paying for products online.

On April 29th, Visa Inc. reported that their branded debit card total dollar volume of purchases surpassed credit card purchases for the first time during the last three months of 2008 – making the debit card transactions processed by Visa 50.4% of their total transaction volume in the same period.

It’s no mystery why consumers are turning to debit cards over credit these days. Consumers are becoming more conscious of their spending, and people don’t want to rack up any more credit bills if they can help it. Debit cards are popular over cash use, because American consumers have a preference for the convenience plastic provides – beginning in 2003, credit and debit card purchases bypassed cash and check purchases.

“A big group of consumers like the discipline that debit spending can bring them, and that is particularly relevant in this kind of environment,” said Tim Murphy.  Murphy looks after MasterCard Inc.’s main payment products.

Unlike credit cards, which allow consumers to charge more than they can afford to pay when the statement comes and carry the balance from month to month, debit cards only let you spend what you have in your checking account. A Nilson Report provides data for the increase of debit cards since 1987:

nilson

Banks are helping to encourage debit card use through the offering of rewards programs. While debit card rewards programs are not as generous as most credit card programs – it’s still a good incentive that helps people choose debit over credit. Credit card use is expected to decline even more, as Americans continue to monitor and rein in their spending habits.