Tuesday, January 24, 2012

Bank of America to test reward program based on spending history

Bank of America will begin testing Wednesday a program that will give cash discounts to debit and credit card users who take advantage of deals offered them based on their spending history.

Known as BankAmeriDeals, the program hopes to "deepen relationships" with customers and help the bank acquire new ones, spokeswoman Tara Burke said.

The bank will determine deals for customers based on their spending history. It will let customers know what deals are available to him or her through its online banking site, and through text and mobile alerts.

The customer will then pay full price at the participating retailer, and get a cash payment at the end of the month.

The deals are negotiated with retailers through rewards company Cardlytics. Bank of America will not share customer data with the company, Burke said.

The trial starts with bank employees in North Carolina, South Carolina and Nevada on Wednesday. It will be available to all employees by late February, Burke said. It is unclear when the service will be made available to non-employees.

Bank of America CEO Brian Moynihan has cited deepening relationships with customers multiple times as the bank's strategy toward mitigating the impact of recently imposed swipe fee caps on debit card transactions. The bank has also increasingly touted its mobile and online banking.