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Debit Card Round-Up

One of the things we hear all the time when talking with credit unions is that they would like to increase their debit card usage. The hope with offering a debit card to a member is that they will generate interchange income for the institution. Recently, we have seen a trend in increased debit card usage because with more uncertain times, members tend to want to keep a closer eye on their finances, and having access to real-time usage and balances is important. Using a credit card creates a sense of worry for some members as that money is not reflected in real-time in their account and is something that will be deducted when the credit card statement is paid.

An important note that we have noticed here at Sharetec is the fact that all credit unions offer a debit card but not all of them offer enough education or resources to show the members all the benefits they have available. One feature that we really try to promote to all of our credit union partners is the Debit Card Round-Up Program. This program promotes savings for your members. When your member makes a purchase (say a $3.78 coffee). Sharetec rounds the transaction up to the nearest dollar ($4.00 in this case) and deposits the extra change ($0.22) into the member’s savings account. This provides added savings for a member without any extra effort. Most members do not have a problem rounding up cents after each debit card purchase and after a period of time, they will notice their savings account growing without having to invest lump sums of money. These are everyday purchases that help grow members’ accounts. I would think some of your members would be interested in such a program if they knew it was something the credit union offered.

One credit union that is taking advantage of the Debit Card Round-Up Program is Landmark Credit Union located in Danville, IL. Landmark Credit Union currently serves over 10,000 members with assets above $102M. Landmark Credit Union wanted to offer their members more ways to save. They cross-sell Debit Card Round-Up to members to increase share draft account enrollment. Some of the benefits include:

  • Keeping CU top of mind
  • Satisfied members
  • Convenient for members to save money
  • Encourages debit card transactions

Landmark Credit Union has been promoting the program on their website and through posters. They also offer the program simply through their debit card application. Anna Melecosky, VP of Landmark Credit Union, remarks, “We have a simple statement on our debit card application that allows our members to select the program when applying for a new debit card. This gives us the opportunity to cross-sell this option to our members, offering them complete control of their money that is being transferred to the account. With 16% of our share draft accounts currently enrolled, members are amazed how quickly their account grows!”

“With Sharetec Debit Card Round-Up Program, members can increase their savings with each debit card transaction. Members can save without having to do anything! They can sit back and watch their bank account grow. It’s simple and easy, exactly what members want,” comments Matt Isger, Regional Director for Sharetec.

To read the full case study, visit www.sharetec.com/images/CS-DebitCardRoundUp.pdf.