Debit card rewards still offer opportunity for fee revenue, survey indicates.

• Position: MARKETING NEWS - Survey

THE OUTLOOK FOR DEBIT CARD REWARDS PROGRAM RECENTLY HAS BEEN UNCERTAIN. Some banks have scaled back or even discontinued debit rewards. Many are re-evaluating their rewards on the assumption that these programs will not survive in their current form.

However, a new consumer survey from Synergistics, Atlanta, is somewhat reassuring about the future potential of debit rewards. "These finding tend to indicate that debit rewards should be offered as a fee-based value-added enhancement or upgrade for debit cards," says Genie M. Drisill, the company's chief operating officer.

A significant proportion of debit card users--more than four in ten--say that they are willing to pay a fee at some level, with a notable number responding that they would accept a fee of up to $50 annually. In addition, more than four in ten of those who have debit card rewards report they currently pay some type of fee for this reward program.

More than half of debit Card users report that they are offered some type of reward program with their debit card. When asked if they were paying a fee for their reward program, one-fourth reported that they were paying an annual fee; one-fifth said they were paying a monthly fee.

In addition, all debit card users were asked if they would pay several different levels of fees for a debit...