FIS, the credit and debit card processor for the majority of card-issuing credit unions, is adding some merchant-funded rewards to its existing ScoreCard rewards program.

Merchant-funded rewards have gained in popularity among debit card issuers in particular as they have sought ways to cut the costs of card incentive programs in face of a looming debit interchange cap.

The new part of the ScoreCard program, which Jacksonville, Fla.-based FIS has dubbed ScoreMore Rewards, repays cardholders for using their credit and debit cards at certain national, regional and local retailers. The card-issuing financial institution will also be able to earn rewards when its cardholders use their cards with those retailers, the processor said.