Should Credit Unions Pay Members For Using Their Debit Cards?

As of late its seems as if most financial institutions are adding on more and more fees. One credit union, however, is bucking that trend.

First Community Federal Credit Union is flipping the script and paying members for using their debit cards!

November 1 through January 31, we will be paying members who make at least 15 purchases each month.  You’ll earn $0.10 for each purchase (ATM transactions excluded) – up to $5.00 each month during this special promotional period.

But that’s not all – one $500 winner each week will be selected from all purchases made the previous week.  And ONE LUCKY WINNER will swipe their way to $5,000!*

Talk about Money In The Bank!

In stark contrast, Bank of America recently shot down plans to institute a $5 fee. Why will this plan work out in First Community Federal's favor?

  1. People like free things. I really don't think I need to elaborate more here...
  2. People like cash. The difference between a CU branded flashlight and $5 is that members will definitely use that $5.
  3. People will use their credit union accounts more. I currently fluctuate between 3 different debit cards from differing institutions that I use for different things. If I know that I'll in essence be receiving cash back on my purchases with my CU card, why not?

I know that other credit unions have tried this method with varying success. Has yours? Tell me what worked and what didn't in the comment section!

DeAndre