SOURCE: Cartera Commerce

Cartera Commerce

December 21, 2010 11:50 ET

Cartera Commerce Responds to Proposed Federal Reserve Rules in Interchange Fees With New Solutions for Debit Card Issuers

Offers Best-in-Class Merchant-Funded Rewards Solutions to Drive Debit Card Spend and Activation on Performance-Based Pricing Model With No Fixed Costs

BOSTON, MA--(Marketwire - December 21, 2010) - Cartera Commerce, the leading provider of multi-channel shopping solutions and merchant-funded rewards, has announced new solutions for debit card issuers. In light of the announcement from the Federal Reserve to create a 12-cent cap on the fees merchants must pay banks for processing debit card transactions, Cartera's multi-channel, merchant-funded rewards solutions represent a compelling alternative revenue stream and rewards funding model to offset future cuts in interchange fees.

The Fed's proposal represents a reduction in debit card interchange fees of one-fifth from current average levels. These reductions are part of the regulatory changes called for in the Restoring American Financial Stability Act, and specifically, the Durbin Amendment, which gave the Federal Reserve regulatory power over the interchange fees banks can charge merchants every time a debit card is used in their stores. 

"As we suspected last July when the Dodd-Frank financial regulatory reform bill became law, the impact of these coming fee reductions has led banks and card issuers to pursue other sources of incremental revenue, and new loyalty marketing models that don't require bank funding of rewards," said Tom Beecher, CEO of Cartera. "Forward-thinking financial institutions began planning for the eventuality of these changes months ago, and one of their strategies has been to invest in next-generation partner-funded loyalty programs like ours."

Beecher continued, "Cartera already works with 4 of the top 10 largest debit card issuers and the level of incoming inquiries and interest from other banks has only increased in the last 6 months. Cartera's solutions are a proven alternative to traditional, bank-funded debit card rewards. Now more than ever, they represent tremendous potential to help off-set expected revenue loss while driving card member engagement and spend."

Cartera's new solutions for debit card issuers include:

  • Performance-based pricing with no fixed fees and no requirement for banks to fund offers
  • A world-class merchant network, including more than 1,000 national, regional and local merchants, both online and in-store
  • Comprehensive support for all offer types, including statement credits, cash back, points, miles, coupons and point-of-sale discounts
  • Innovative marketing solutions such as web portals, email, mobile and browser apps
  • A best-in-class Statement Offers solution, presenting targeted, highly relevant discount and cash back offers within a consumer's online banking statement. 

About Cartera Commerce
Cartera Commerce is the leading provider of multi-channel shopping solutions and merchant-funded rewards that increase revenue, strengthen customer loyalty, and improve member engagement for a range of industries including financial services, card issuers, airline and hospitality, and loyalty programs. Featuring an integrated network of more than 1,000 world-class online and bricks-and-mortar merchants, Cartera Commerce's multi-channel shopping solutions and flexible, on-demand platform power personalized online and in-store shopping programs for more than 150 million consumers. Industry leaders including JPMorgan Chase, Delta, Best Buy, USAA, Upromise, Wells Fargo and Verizon rely on Cartera Commerce to build loyal, profitable customer relationships. Cartera Commerce is headquartered in Lexington, Mass. For more information, visit

Contact Information

  • Contact:
    Jessica Hoffman
    Phone: 925-296-6161
    Email: Email Contact