Chessie FCU

By Joyce Moed, Reporter

BALTIMORE, Md.–One credit union is boosting debit card use and interchange fee income through an automated member rewards program that is simple to administer and offers a wide range of redemption options.

The $186-million Chessie FCU, here, has been selected as a best practice winner by Credit Union Journal for debit card use and card rewards.

The credit union, which was seeing to increase debit card activation and usage as a way to obtain checking and retain members, was already processing its debit cards through Fiserv. It then added Fiserv’s UChoose Rewards solution in December 2008.

UChoose Rewards is a flexible, customizable program that helps credit unions differentiate, increase debit activity, and grow revenue with consumer and business members. Through a daily extract of data from the CU’s card processing system, UChoose compiles data on member debit transactions and awards and tracks points. For every $2 in debit transactions, Chessie FCU members earn one point toward  a comprehensive line of reward options, including merchandise, travel excursions and event tickets.

Chessie promoted UChoose in statement stuffers, statement messages, newspaper advertisements, newsletters and a billboard. In the first six months, members earned about 3 million points. The CU gained incremental debit spend of $350,000 in April 2009 vs. November 2008–the last month before the program went live–which was an 8.7% increase. Interchange fee income also increased by $54,000.

“Members love the wide range of redemption offerings,” said Lynn Davis, VP, Chessie FCU.
Davis said that UChoose is also appreciated for its “simplicity,” adding that it takes very little effort to administer.

By selecting the UChoose merchant-blended option, Chessie shares the cost of the redemptions with participating merchants, which reduces the program’s cost and improving net income.
“The program has worked very well for Chessie,” said Andy Brown, VP, product development for Fiserv.

Brown said that a significant cause for Chessie’s success with the program was the CU’s strong marketing of brochures and billboards.

“They’ve had account holders come in and ask for cards they previously didn’t have,” Brown said. “It’s done very well for them.”

For other CUs hoping to have similar results, Brown advised “the simpler you make it for the consumer, the better you are.” He also said to find ways for members to know about the service even when CU representatives are not available, such as including it in your on-hold messages “so they will ask about the program themselves.”

“Also the simpler you can keep the message, the easier it will be for members to talk to their friends and family, and social network about it,” Brown said. “Don’t overwhelm the member. Start with a simple message, and have a program that’s robust with different rewards.”