TCF Bank announced this week that its debit rewards program, TCF Miles Plus, will end effective Aug. 2.
The Minnesota-based bank is acting in line with a handful of other major banks that can no longer afford to keep debit reward programs running, according to MyBankTracker.com.
Chase and Wells Fargo also recently announced an end to their debit card rewards program, while others, such as BBVA, have moved their debit reward programs into merchant rewards.
The Federal Reserve’s recent cap on interchange fees cut the swipe fees from 44 cents to 21 cents. Banks claim the money collected on interchange fees was used to subsidize their rewards programs.
“When you lose revenue, you can either cut expenses or raise prices,” Jason Korstange, the senior vice president at TCF Bank, said, MyBankTracker.com reports. “TCF Bank has decided to end Miles Plus to ensure we can continue providing the high level of service to our customers.”
TCF posted a memo on its website instructing all TCF check cardholders who are enrolled in the TCF Miles Plus Rewards Program to redeem their points by Sept. 22. These points can be redeemed for a variety of different rewards, including travel or housing ware, or they can be exchanged for an Amazon.com gift card.
Any points accumulated after Aug. 24 will be not posted to accounts.