Jiko Group Inc., a bank holding company supervised by the Federal Reserve announced that it has processed a massive $4.7 million debit card transaction as part of its newly launched Debit Card Cashback Rewards Program. A tax payment to the IRS made with a Jiko Debit Card, resulted in $47,000 cash back to the customer, which was deposited directly into the customer’s account for immediate spending, according to a press release.
Jiko replaces bank deposits with fluid government-backed Treasury Bill investments, which can be spent in real-time by customers via debit transactions. Jiko’s Debit Card Cashback Rewards Program passes the interchange income, income usually kept by banks, back to the customer in the form of 1% cash back on qualifying purchases. The $4.7 million IRS payment was processed through Jiko’s Virtual Debit Card for Tax Payments feature, which operates on the Discover Network, and is currently available for all users.
“We’ve made it possible for customers to benefit from debit card rewards, just as they’ve experienced credit card rewards in the past,” Stephane Lintner, CEO and co-founder of Jiko said in the release. “Because Jiko is the bank, we collect the fees that banks typically collect from merchants. However, our unique, subscription-based business model means that unlike banks, we can pass those fees directly to our customers, small and large, creating this Debit Cards Cashback Rewards Program.”