Bank of America is going to start offering its customers on-line discounts based on their previous purchases, Reuters reports.
The serice will be called BankAmeriDeals, and unlike with Groupon and other services, there will be no e-mails advertising sales in your inbox. The discounts will be awarded, instead, in the form of monthly cash payments.
Retailers won’t profit from this either. This is all an attempt on Bank of America’s part to garner some good will… and ramp up credit card activity, of course.
Here’s how the service works: When customers log in to Bank of America’s online banking site, they will see discount offers — a percentage off the amount spent at a retailer — embedded in their statement and under a separate tab. They can accept the offers they want to use.
When customers make their purchases, they pay full price, but at the beginning of the next month they receive cash back in their accounts. Customers can only use Bank of America debit or credit cards to trigger the savings.
The bank may end up holding money for a period of time in the settlement process, but making money off that float time is not part of the program’s “core strategy,” said David Godsman, a Bank of America mobile online solutions executive.