DES MOINES (9/11/12)--Members Group (TMG) has added a merchant-funded rewards platform to its existing card-rewards program used by credit unions and community banks to optimize credit and debit portfolios.
Merchant-funded rewards are designed to stand alone or supplement an issuer's traditional rewards offering.
With merchant-funded rewards, merchants carry the cost burden often associated with rewards redemption. Merchants benefit from increased sales as a result of the program creating, a win-win for financial institutions and retailers, according to Matt Flynn, TMG director of client relations.
"The trickle-down effect" of the cap on debt interchange and the increased competition for walletshare among issuers "is creating a need for a holistic set of tools to help community financial institutions get the most out of their portfolios," said Flynn. "Merchant-funded rewards get issuers where they need to be competitively, yet affordably."