First Data exceeds robust expectations in rewarding customer loyalty.

From its humble beginnings in 1948, American State Bank

is now a leader in personal and business banking, with

$2.5 billion in assets and 37 locations in 21 West Texas

communities. However, when an existing debit card loyalty

program proved less than robust, the bank sought to

reward customers by converting to a superior program.

In selecting First Data, American State Bank benefited

from a program that exceeded expectations, resulting

in increased card activity, reduced processing costs,

improved fraud prevention and lower account turnover.

For a bank that’s all about building customer loyalty,

partnering with First Data has its rewards.

ClientAmerican State Bank

ChallengeImprove reward quality, acceptance and value of debit card loyalty program

SolutionConvert to a First Data debit card loyalty program offering state-of-the-art controls and flexibilities ResultsIncreased card activity, reduced processing costs, improved fraud prevention,lower account turnover

A FIRST DATA CUSTOMER SUCCESS STORY:

BANKING ON DEBIT CARD LOYALTY PROVES THE PERFECT PROGRAM FOR AMERICAN STATE BANK

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The Challenge

From a small, one-room building, American State Bank opened in 1948 with a vision of establishing a “friendly little family bank.” Holding true to that vision, the bank has since grown to $2.5 billion in assets, serving 21 West Texas communities from 37 locations.

“As a locally owned and operated bank, we’re invested in helping our communities grow, one individual, one business at a time,” says Michael Epps, President of American State Bank. “So customer loyalty and rewarding that loyalty is a big part of our overall efforts.”

With account retention a key priority, American State Bank sought to replace an existing debit card loyalty program that was neither popular nor cost-effective. “The program was not very robust,” recalls Epps. “That convinced us to look into the First Data program.”

The Solution

“When we looked at quality and cost, First Data clearly had the superior program,” says Epps. “Comparing programs, the rewards were just so much better. We were excited about First Data’s program and we knew our customers would absolutely love it.”

As for cost, the program also met with Epps’ approval. “Previously, the bank had to pay whether the customer redeemed or not. Now we pay only when the customer redeems. On the whole, First Data has exceeded our expectations and done so at a fair price.”

According to Epps, working with First Data is an equally satisfying experience. “First Data has been a very good company for us, providing the services we need and keeping things running smoothly. Our account rep does a great job and is always there for us.”

The Results

State-of-the-art controls and flexibilities associated with First Data’s debit card loyalty programs have benefited American State Bank, resulting in increased card activity, reduced processing costs, improved fraud prevention and lower account turnover.

“Since converting to First Data,” explains Epps, “interchange fees have increased, while actual fraud losses have decreased. And the loyalty program has allowed us to grow accounts and reduce turnover, which is at the lowest level it’s been in the last 10 years.”

What does the future hold? “We’re really excited about adding credit cards to our First Data loyalty program,” says Epps. “Getting debit and credit together offers so much more flexibility and opportunity, and that’s going to be very important to us down the road.”

A First Data customer success story: American State Bank

When you look at the quality and cost of First Data’s program, there’s none better.Michael Epps, President, American State Bank