The limited time credit card rewards program, announced Tuesday (Aug. 11), is designed to help the credit union’s members earn more on gas and electric vehicle charging purchases.
“Our members continue to face rising everyday expenses, and transportation costs remain an important part of household budgets,” Amy Hsu, SchoolsFirst senior vice president, payments and fraud, said in a news release.
“We’re seeing members spend more on gas than they did a year ago. This promotion is one way we’re helping put a little money back in their pockets on purchases they’re already making.”
According to the release, the promotion was inspired by the credit card spending trends SchoolsFirst has seen among its members. Average credit card spending on gas has risen 15% in the last year, while non-gas spending is up 5%. Around 28% of the credit union’s members use their SchoolsFirst credit card for gas purchases each month.
Gas prices have climbed nationwide since the U.S. war with Iran began earlier this year. As of Tuesday, the national average for a gallon of gas was around $4, compared to $3.13 this time last year, according to AAA.
The promotion lets eligible existing credit cardholders and members who open a new eligible SchoolsFirst credit card earn “enhanced rewards” on qualifying gas and EV charging purchases, the release said. Depending on the card, this could mean earning 5% cash back or 5x points.
The new offering comes as the cost of fuel has made many American workers facing a difficult question, as PYMNTS wrote late last month.
“The question isn’t whether a worker can afford the gas. It’s whether the gas lets them afford to show up at all,” that report said.
It’s an issue at the heart of a recent installment of Wage to Wallet Index, a joint research effort between PYMNTS Intelligence and WorkWhile, which looked at the issue from the perspective of Labor Economy workers. These are the people staffing warehouses and healthcare facilities, or making deliveries.
“The work requires a body in a place, and 28% of the Labor Economy workforce has so little of its paycheck remaining that every shift becomes a household calculation,” the report said. “Does this one make economic sense to take?”
When enough workers say no, the question is not about affordability, but a question of access to the labor force itself, as PYMNTS CEO Karen Webster put it.
WorkWhile CEO Simon Khalaf added that distance is becoming a deciding factor in determining whether workers will take a shift.
“They’re looking at their total take-home pay, including transportation, and looking at the total money they’re making, not the money per hour,” Khalaf said.
