Interchange Fee Limits Give Way to Transaction Marketing

1. precise targeting capabilities;
2. presentation of highly relevant offers to consumers in their bank statements (places that, until recently, have been off-limits to retailers); and,
3. the precise performance tracking of campaigns.

Unlike traditional rewards programs, transaction marketing enables retailers to build campaigns that target specific customer purchasing characteristics. Such purchasing characteristics may include ZIP code, store name, store category, purchase frequency or amount of expenditure. Partnering financial institutions route retailers’ offers to the bank accounts of consumers who meet the required purchasing characteristics. All of this is completed within the safe confines of a bank without personal information ever leaving the institution.