As Debit Rewards Fade, U.S. Bank Makes A Move
There are some small business owners out there who simply don’t like debt. Add a healthy cash back rewards offering to the equation and you can see why some SMB owners might love debit.
Unfortunately for those people, debit rewards appear to be on their way out. With interchange rates on debit card transactions being regulated much more strictly by the Durbin amendment, there just isn’t as much revenue as their used to be for funding these programs.
So how do issuers respond? What can they do to provide small businesses with rewards and a debt-free payment option?
At U.S. Bank, they’re thinking the answer might be a charge card. Earlier this week, the company announced a new partnership with Visa, through which it would offer SMBs a U.S. Bank Business Visa Charge Card that includes no annual fee, up to one percent cash back, and a 25-day grace period to help with cash flow. And because it’s a charge card, there’s no revolving balance.
For more on the new product, we spoke to Cathi Stanton, a senior vice president for U.S. Bank Retail Payment Solutions. That interview is available below.
Senior Vice President, U.S. Bank Retail Payment Solutions
Cathi Stanton is a senior vice president overseeing small business payment products at U.S. Bank Retail Payment Solutions. Cathi has been with U.S. Bank for five years and has more than ten years of experience developing and managing small business payment products, with a total 18 years of experience in financial services. She earned an MBA from St. Joseph’s University in Philadelphia.