Jason Gaughan
Bank of America credit cards executive

As the Consumer Card Product Executive at Bank of America, Jason Gaughan works with his team of dedicated associates to deliver best in class products that meet clients’ financial needs. Gaughan has more than 25 years’ experience implanting strategies and services that help empower customers financially.

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Credit Card Meets Consumer Choice

A Peek Inside the Development of the Bank of America Cash Rewards Credit Card

By Jason Gaughan, Bank of America credit cards executive
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Consumers are in control in an era of customization. Take the dining industry where set menus have given way to a "build-your-own" craze. Or in entertainment, where streaming services allow viewers to binge any show at any time with a click of the remote, rather than being hamstrung by a pre-assigned time slot.

The credit card industry is experiencing a similar transformation… well, sort of. While the market is filled with many rewards options, they often focus on travel, dining, or a specific brand and rarely give cardholders the choice of where to earn rewards.

When Bank of America began developing our newest credit card, we realized the importance of adapting to the consumer mindset and showing we were listening versus dictating. This led us to ask our clients, what would you like the power to do?

Enter the new Bank of America Cash Rewards credit card, crafted in direct response to clients changing habits and priorities. The card allows them to earn 3% cash back on gas — or choose among five other popular categories to receive 3% cash back — a concept unmatched in the credit card industry.

A choice for every client

Through qualitative and quantitative research, we confirmed consumers didn’t want another card with rewards benefits they see all the time. They wanted a card with rewards benefits they could control. Rather than provide categories we perceived to be popular by industry standards, Bank of America focused on the categories consumers actually spent the most in and enabled their ability to choose where they earn rewards.

We looked directly at our clients’ spending habits to evaluate and understand their spending priorities. This analysis coupled with extensive client feedback helped us identify the most common spending areas — covering both big-ticket purchases and everyday spending — and funneled into six categories: gas, online shopping, dining, travel, drug stores, and home improvement/furnishings.

Focusing on these consumer-driven areas, we created a card that offers lucrative rewards for changing needs. The new Cash Rewards card now gives customers the ability to choose where they would like to earn 3% cash back, and they can do this once each calendar month. So now, fixing a leaky kitchen sink, making all too frequent last-minute runs to the drug store, or just taking a night off from your "cook-at-home" diet can earn you 3% cash back.

While adding this new value for cardholders, we also made sure to maintain the perks they love, including automatic 2% cash back at grocery stores and wholesale clubs and unlimited 1% cash back on all other purchases.

And for our Preferred Rewards members, we made it even more rewarding. They earn 25%-75% more cash back on every purchase. That means earning up to 5.25% cash back in the 3% choice category.

One-click away to maximize rewards

Digitization has become synonymous with convenience, with nearly all (95%) mobile banking users saying the mobile app saves them time, according to the recent Bank of America Trends in Consumer Mobility Report.

When developing the Cash Rewards card’s functionality, we sought simplicity and ease. Consumers only require a click in Online Banking or via our mobile app to switch their 3% category, creating a seamless user experience.

In addition, the Bank of America My Rewards dashboard is a great online tool available to our card holders who are enrolled in online and mobile banking. My Rewards tracks all of the rewards, deals, and benefits our clients earn across multiple banking rewards programs. So, when you’re racking up rewards on a room renovation or night out, you can see your clear and complete financial picture – including how to maximize earnings, redeem existing rewards, and access new rewards that may be available.

For more information about the new Bank of America Cash Rewards card, visit www.bankofamerica.com/choosemyrewards.

This is a sponsored post by Bank of America as part of Wise Bread's continued partnership with them.