Digital Transactions Authoritative, insightful and timely information for payments professionals
By Peter Lucas
@DTPaymentNews
Payment processor Fidelity National Information Services Inc. (FIS) is rolling out Premium Payback, a rewards-redemption application that allows consumers to cash out rewards earned on credit and debit cards at the point of sale through participating merchants. FIS, which piloted Premium Payback at more than 7,000 BP gas stations in the United States, now plans to offer the program across its client base.
FIS envisions Premium Payback as a way to strengthen its customer relationships by delivering more value to a financial institution’s rewards program through real-time redemption at the point of sale.
During the pilot FIS saw a nearly 3% increase in the number of consumers who used their bank or credit union’s card to purchase gas at BP. Consumers were able to redeem points for up to 50 cents off each gallon of gas purchased, up to 20 gallons.
Of the cardholders who redeemed points during the pilot, 18% said they chose BP because of the loyalty program. In addition, 88% of cardholders said they would redeem points for gas discounts again, and 56% said gas discounts were a better value than other redemption options, such as merchandise, travel, or gift cards. BP is the flagship merchant participating in Premium Payback.
“FIS believes that Premium Payback is an offering that gives clients the flexibility to bring these solutions to their customers in unique ways,” Bob Legters, senior vice president and chief product officer at FIS Global Retail Payments, tells Digital Transactions News by email. “For rewards programs to be effective, simple redemption and member engagement are must-haves.”
To provide real-time rewards redemption, Jacksonville, Fla.-based FIS checks a consumer’s loyalty card for rewards availability during the pre-authorization process at the time of purchase. A consumer eligible for a reward is notified of the value of her reward via the POS terminal and offered a chance to redeem her earnings. “One swipe, one smooth, seamless experience,” Legters says.
FIS will support a number of partnerships and coalitions where consumers earn and redeem points in various ways through the Premium Payback network. This enables consumers to utilize their financial institution’s payment cards for everyday transactions and earn points they can redeem at the point of sale at participating merchants, Legters says.
FIS says fees for Premium Payback will vary by the type of redemption model offered, as well as the offer the financial institution chooses to present to their cardholders.
