Editorial Policy

Debit and Credit Cards Take Hold of Virtual Coupons

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By Steven Gibbs
August 3, 2009

Credit Card DiscountsFrom something that started off very slowly, virtual coupons are now trying to find their way in to every Americans’ pocket book. In recent news, an Atlanta based company called Cardlytics has teamed with a couple of banks to offer their consumers a way to save money before they even use their card. These coupons can be used both in a store or when a cardholder shops online.


So how do "virtual coupons" work? With virtual coupons, merchants place rewards and discounts where cardholders can view them once they log-in to view online bank statements. Once a cardholder chooses which coupons they want loaded on their card, they can go and shop. These discounts will be deducted when the consumer uses the card to make the payment.


So why are virtual coupons such a big deal? In my opinion, this is a win-win situation for all parties involved. For consumers, you will start receiving discounts on the places you shop most, and don’t have to go looking for coupons or discounts. For banks, it offers a cost free rewards program to their cardholders as merchants pay fees to put their coupons in front of potential buyers. For merchants, it is a way to stay in front of competition as consumers migrate toward saving money in every aspect of their lives. It also gives them a way to track consumer spending to create relevant rewards and target different user groups.