ONTARIO, Calif. – In the spring of 2003 Visa USA rolled out Visa Extras, its rewards program for debit cards, to a less than enthusiastic response from credit unions. With the settlement with retailers on debit card interchange looming, it seemed unlikely that the program would offer credit unions rewards that would interest their members and still come in at a cost the CUs could afford.

But that was then and this is now and as CO-OP Financial Services (formerly CO-OP Network) announced that it had cut a deal with RewardsNOW, a leading provider of loyalty rewards programs, to offer a debit rewards program, it appears that debit rewards programs are starting to come into their own.

"I think the conception of what rewards programs can and should do has changed," explained Jim Hanisch, executive vice president with the CO-OP. "They aren't just something credit unions want to use to drive card usage, now they serve to help cement the credit union's relationship with its members as well as keep the CU competitive," he added.