Creditnet News Story
Credit rebate program could help district replace funds
Monday, March 15, 2010
By Sam Lee
As dollars from soft drink sales dry up for a Texas school district, credit card rebate programs could fill the void.
The finance director for a school board in Texas recommended that the rebate program a Visacredit card offers may be able to replace a reduction in funds.
According to a blog post from the Dallas Morning News, Richard Koonce told the Mesquite school board that money generated through a partnership with the Coca-Cola Co. is starting to dwindle. New laws limiting the ability of districts to sell soda are leading to the decrease in funds.
"The big money isn't there anymore," Koonce said, according to the blog.
The program with the soft drink company provided schools with approximately $150,000 annually. Koonce said that one option in replacing that income would be for the district to use a Visa card, which would bring rebate money to the schools.
Items in the district's budget could be bought with the Visa card, which would then be paid in full monthly. The blog said that the rebates could amount to 0.4 to 1.2 percent of each bill paid, depending on the amount.
While rebate programs may help the school district, card companies themselves have been trying to entice consumers to use credit through things like rewards programs. Doing so could help lenders recoup profits lost through new federal regulations.
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