ATLANTA,None — Who knows your shopping habits better than your bank? Every time you use your bank debit or credit card bank officials know where you shop, when you shop, and how often you shop. Now they've found a way to capitalize on that, but at the same time save you money.
Have you seen ads popping up in your online bank statement? Banks are putting these ads in your statement using software developed by the Atlanta based company Cardlytics.
Cardlytics President Lynne Laube told Channel 2 Action News that their software is in over 150 banks across the United States. She says the ads are targeting customers based on spending habits.
"So for example if I like clothing and shoes, I'm going to get offers through my mobile banking for clothing and shoes." Laube tells us.
She says it's called "transaction based marketing" and that it's very safe. Cardlytics claims that no customer data is ever shared by the bank. The vendor decides what type of customer they want to target.
For example, if Neiman Marcus wants to target customers who shop at Bloomingdales they tell Cardlytics to send those customers a discount of 15 percent if they shop at Neiman Marcus. Cardlytics sends the offer to the banks, which then use the installed software to find customers who shop at Bloomingdales.
The next time those customers check their online statement, underneath a purchase from Bloomingdales will be a link for 15 percent off at Neiman Marcus. All shoppers need to do is click on the offer and then use the bank credit card or debit card at Neiman Marcus. The discount will come back to their bank account in the form of cash back at the end of the month.
Laube says that there are no limits to the amount of offers you can use each month. She also says that the merchant has no idea that you are using the discount.
The banks are cashing in on this program too. Every time an offer is used the bank gets a portion of the sale. The upside for the advertiser is that they don't pay any money up front for the discount; they only pay when the discount is used.
Most consumers told Channel 2 they are receptive to the idea of receiving discounts through their banks. However, some didn't like the idea of banks monitoring their spending habits.
"I realize they are looking everywhere they can, but I don't think I would do business with a bank that did that," said one shopper.
Laube tells us for that reason, they make sure every bank they work with makes it very easy for customers to opt out of the service.
She says that once they opt out, the bank stops monitoring them and the ads don't show up in their online statements.
WSBTV
