Because it allows users to only spend money they already have, debit is still one of the favored payment options for customers.
However, shops may have a mixed history when it comes to rewarding customers who use debit cards, particularly cards that bear their name.
Last Monday, Kroger made the following announcement on its website: “We are no longer accepting applications for the Rewards Debit Card. We apologise for the trouble.
This brief statement is followed by a lengthy explanation of how the debit card rewards, which have been accessible since early 2019, functioned: On purchases of items bearing the Kroger name, cardholders received 2% cash back (with a further 2% for using Kroger Pay).
Further explaining what happened, as reported in social media and on business websites like couponsinthenews.com, the company stated that it is “always looking to improve our products and shopping experience so we are sun-setting this to focus on enhancing other savings solutions for our customers.”
During the conference call, CEO Rodney McMullen stated that “our customers are saving through loyalty discounts, including weekly specials and yellow tag promotions, engaging in our broad assortment of Our Brands products, and redeeming personalized digital coupons and fuel rewards.” The business reported that during the first quarter, digital coupon downloads climbed by 48% while redemptions increased by $180 million.