S.C. Federal Credit Union Boosts Credit Outstandings by Almost 10 Percent with Rewards-Based Platinum Promotion    

St. Petersburg, FL, April 11, 2006 – South Carolina Federal Credit Union of North Charleston, S.C., boosted outstanding credit balances by $6.5 million in the fourth quarter of 2005 with a rewards-based Platinum promotion. The credit union contracts with PSCU Financial Services to provide CURewardsTM for its Platinum credit cardholders.

Instead of low introductory interest rates, the credit union decided to use CURewards points to attract attention, according to Vice President of Marketing Scott Blue. Blue worked closely with PSCU Financial Services to design incentives that would boost both activation and usage rates.

Cardholders earned 3,000 points for their first purchase, double points for external balance transfers and 5,000 points for using another credit union product for the first time, including car or mortgage loans and checking.

“Our Platinum card program was attractive, but we needed a way to generate excitement among our members,” said Blue. “Bonus CURewards points proved to be an excellent and cost effective way to motivate members to use the Platinum card and to try other credit union products as well.”   

The promotion, which ran during the fourth quarter of 2005, exceeded all expectations. The credit union opened 1,521 new accounts. Of those, 842 accounts represented existing members who did not have a credit union credit card, while 624 cards were member upgrades. The promotion also attracted 55 new credit union members.

These accountholders transferred $1.7 million from other institutions, doubling the credit union’s goal of $830,000. Outstanding balances rose by $6.5 million during the quarter, an impressive increase of 9.4 percent.

Investment expenses were minimal since 85 percent of the new accounts responded to a pre-approval letter. “We send out a pre-approval letter to qualified members every quarter. So it’s clear that offering bonus points and publicizing the CURewards program made the difference,” Blue explains.

The credit union also boosted activation rates by extending bonuses to inactive cardholders. “PSCU Financial Services identified several hundred inactive cardholders, and we also offered them 3,000 bonus points for a new purchase,” he said.

About S.C. Federal Credit Union

South Carolina Federal Credit Union, headquartered in Charleston, is one of the 100 largest credit unions in the United States. More than 150,000 members own and belong to the nonprofit financial cooperative, which has more than $1 billion in assets. S.C. Federal is a community-chartered credit union. Anyone who lives, works, worships or attends school in Dorchester, Berkeley, Charleston, Orangeburg, Clarendon, Calhoun or Georgetown counties, including specific census tracts covering most of the Columbia area, is eligible to join. S.C. Federal CU has 19 branches and more than 60 ATMs throughout Charleston, Georgetown, St. Matthews and Columbia. More information about S.C. Federal Credit Union can be found at www.scfederal.org.

About PSCU Financial Services

Established in 1977, the company provides a broad array of cost-effective, high quality financial services that include credit, debit, ATM, bill payment and contact center solutions. PSCU Financial Services uniquely offers its members a full range of processing options, any combination from full service to in-house pass through processing for credit, debit and ATM transactions. As the leader in the credit union industry, the company offers gateway access to national and regional networks. It also provides full function ATM terminal driving services.

For more information, visit the company's Web site at www.pscufs.com.

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