The $467 million Water and Power Community Credit Union of Los Angeles said this week it is getting good response from a month-old Platinum Cash Rewards MasterCard product.
The offering debuted on Sept. 20 and is being handled through PSCU Financial Services. It offers 1% cash back for all purchases and 3% cash return for gas, groceries and drugstore purchases for the first six months
“We’ve opened 255 accounts as of last week, so it’s turning out to be a popular card,” said Linda Heidtke, the CU’s director of marketing.
Anna Cox, director of member loyalty at PSCU, the St. Petersburg, Fla., CUSO, said perhaps some 14 to 20 credit unions have started or are planning to launch cashback-purchase style programs similar to Water and Power.
Heidtke said nearly 80% of member respondents to an online marketing survey it took in February found an overwhelming preference for cash.
The link, she said, was sent to 12,200 potential respondents including Facebook fans of the 36,000-member credit union. Respondents for the 11-day survey were entered into a sweepstakes to win two tickets to Disneyland.
A total of 47% – or 464 – were between 36 and 55 years of age, 37% of respondents earn $75,000 to $95,000, 83% had been members more than three years and 79% were DWP or DWP-related members as part of the core sponsor group.
The survey, Heidtke said, found that 95% had between one and nine credit cards, 49% said they would use a cash rewards card if offered it and 79%, or 745, preferred cash over other types of rewards. A total of 49% said they never or rarely carried a balance, 32% said all of their cards carry a balance and 49% have a WPCCU MasterCard
Water and Power developed its specialized cashback campaign based on those results, Heidtke concluded.