Bank of America is beta testing a new Groupon-like deal for its credit and debit cardholders, BankAmeriDeals. Here’s how it works. When customers log in to Bank of America’s online banking site, they will see discount offers — a percentage off the amount spent at a retailer — embedded in their statement and under a separate tab. They can accept the offers they want to use. When customers make their purchases, they pay full price, but at the beginning of the next month they receive cash back in their accounts.
A Bank of America executive claims that this is a way to deepen relationships with existing customers and attract new ones. “This is an opportunity for us,” he said. Sure it’s an opportunity. An opportunity to helps consumers fall deeper into credit card debt. The
article points out that the offers will be targeted to individuals based on their prior spending habits. While you might get that cash back on your next statement, you have still charged an additional amount to your card that you might not have otherwise. If by deepening relationships, Bank of America means deepening credit card debt for their cardholders, they’ve got the right idea here.
Kevin Fallon McCarthy
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