July 19, 2011
Even as Chase, PNC Bank and other major financial institutions have cut back on rewards programs in the wake of new debit regulations, TIME reports that some banks are finding creative ways to still offer loyalty programs.
Online FI Ally Bank has launched Ally Perks, which offers cash back directly into a customer’s account for shopping at any of their 20 partner retailers. Offers include $5 back for a $50 purchase at Target, $5 on a $25 purchase at Best Buy, $5 on a $35 purchase at PetSmart and $1 back on a $2 purchase at iTunes.
“While the simplicity of the cash-back program is nice, the limits and moving-target quality of the offers makes them not quite as rewarding as some customers might like,” muses TIME reporter Brad Tuttle. “These offers expire (typically between 14 to 31 days after being introduced) and change from time to time, so it may be difficult to keep tabs on when and at which store you’ll get rewarded. Also, the cash back is a flat, fixed amount for each offer.”
Meanwhile, another online bank, PerkStreet Financial, lets customers earn 2% cash back on all non-PIN debit card purchases for the first 90 days. After this initial period, customers whose checking accounts exceed 5,000 or more still get 2% cash back afterward on similar purchases. Customers with a lower checking account balance can still get 1% cash back.
Although in both cases the programs are limited with specific requirements, as Tuttle points out, something is better than nothing.
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