Umpqua Bank Offers Cash Back for Using Debit Card

Greg Stiles reports for the Mail Tribune on Umpqua Bank's new debit card rewards program - being managed by Rainbow Rewards. This program is another example of a trend in debit rewards programs where the rewards are largely funded by the merchants participating in the program.

Stiles explains "Umpqua Bank spokesperson Lani Hayward said the program connects merchants with customers, charging them for the service only after a transaction is completed. Stores pay Rainbow Rewards a marketing fee of 3 percent to 18 percent of the purchase price. If the store offers a 9 percent debit card rebate, for example, it pays Rainbow Rewards 12 percent and Rainbow keeps 3 percent for operating costs, marketing expenses and donations to a designated charity."

Umpqua's press release announcing the new debit card rewards program says that "customers can receive up to 20 percent cash back on initial purchases, and up to 14 percent on every-day purchases made at participating local businesses, or online retailers. Umpqua’s program also benefits participating businesses by promoting them to members, building customer loyalty through its cash incentives and giving a donation to the local Boys & Girls Clubs with every qualifying purchase."