eBucks, payment service or bonus rewards?

When you first time hear the word ‘eBucks’ you imagine an ecommerce service that is somehow associated with the ‘bucks’, or dollars, in electronic format. And even though eBucks really represents a kind of digital currency the system itself was not developed to become a fully functional payment service. Moreover, the company offering eBucks defines it as rewards program. In a few words this is an optional service that allows any customer of the specified banks to subscribe for it and accumulate special bonus points on every purchase made with the service partners or by means of payment cards issued by partner banks.

eBucks was introduced in South Africa in 2000 as a multi-partner rewards program. The company that operates the program is registered as NewBucks Operations Proprietary Limited and is a wholly owned subsidiary of FirstRand Bank Limited. It was planned as FirstRand Group business to consumer eCommerce initiative. eBucks offers its rewards service to customers of First National Bank; RMB Private Bank; WesBank; Makro; Look&Listen; GardenShop; Arthur Kaplan Jewellers; Avis; Loads of Living; The Golfers Club; Spec-Savers and kalahari.net.

For first three years of its operation eBucks functioned as a rewards programme for a number of partners, a cross-sell vehicle for the FirstRand Group and rewards programme partners, and the financial services portal for FNB and RMB Private Bank.

Eventually as the business grew it was restructured in separate arms so that they could focus on their specific areas thus adding value to customers’ satisfaction. In February 2004 eBucks.com was formally divided into two parts - the eBucks Rewards Program and the eDelivery business unit.

So, how does it work?

To be eligible for the program a person need to be an FNB personal banking customer residing in South Africa. A user earns eBucks when they perform transactions on any of these FNB accounts:

•    FNB Credit Card

•    FNB Personal Cheque Account

•    FNB Sole Proprietor Cheque Accounts

•    FNB Private Clients Credit Card

•    FNB One Account

•    First Link Insurance Brokers

•    RMB Private Bank

•    WesBank

In order to join the program a customer can go through the registration procedure on eBucks website. During the registration a new user have to provide their personal details such as name and a valid ID number. After this they should specify contact details, address and access details. New members will receive their eBucks card in the mail along with a welcome pack when joining the program.

Once the user receives their card they can start earning eBucks every time they are making a purchase at a retail partner with just swiping their card. eBucks are earned only on purchases paid with South African national currency Rand. When a customers makes a purchase with eBucks they do not earn them again. 10 of eBucks equals 1 Rand.

The rewards program subscribers can spend their eBucks in four ways: purchase an item at eBucks online shop, book a ticket for a travel, pay for goods at a store of a partner retailer and bid for products at an auction.

Shopping categories on eBucks website include Airtime, Appliances, Books & Magazines, CDs, VDs & Games, Computing & Office, Electronics & Cameras, Fashion & Beauty, Flowers & Gift Hampers, Gift Vouchers, Greening, Home & Décor, LOTTO®, Mobile & Ringtones and others. Traveling categories include International Air Travel, International Holidays, International Car Rental, Domestic Air Travel, Domestic Car Rental, Domestic Transfers, Tropical Holidays, Cruises, Green Holidays, Golfing, Space Travel Adventures, Adventures & Activities, Theatre Packages and others.

Customers can return purchases made on eBucks card. They have to do it at the store where they bought the item. Customers cannot convert eBucks into cash and in case they return the goods they will be issued with a credit note or voucher, depending on the store's refund policy.

In case a user loses their card they can immediately cancel it either via the website or by calling the company Service Center.

eBucks offer their customer four ways of checking the balance. And it should be noted that not all of them are free. If a customer logs into their online member area there they will be provided with a thorough report on their balance while SMS service will cost them R1. And if a user decides to check their balance when shopping at a retail partner they will be charged 22 eBucks. The fourth method to check balance is to call their contact center.

One more way eBucks reward their members is discounts. In order to qualify for the discount a user have to:

•    Earn an average of eB300 or more per month
•    Have a qualifying FNB Check account and/or FNB VISA Credit Card linked to earn eBucks
•    Have all their qualifying FNB accounts in good standing
•    Ensure that if they have an FNB Check account, that it is active

In case a user has not enough eBucks on their card they can still be eligible for the discount. They can pay for their purchases in the eBucks shop in rands and still enjoy a discounted deal. This is even if they have a zero eBucks balance.