I've always had a love-hate relationship with store loyalty cards and marketing that tracks consumers' spending habits. It really all started back in the day when I used to go to Weis with my Mom. Besides the thrill of standing on the back of the cart as we perused the aisles (that ended the day the cart flipped), I got to play with the ultimate toy: The self checkout machine. But not just because it was an awesome machine. It really bothered me that you had to scan your Club Card to get certain savings, because then they could track your purchases. It bothered me then and it still bothers me today. So I figured out the default card number that would get you the savings, but would make your purchases untrackable. (If you care to know, it's 40110 000 00 00 -- kinda sad that I still remember that). That was that.

I still haven't really figured out why this practice bothers me so much. Maybe some sort of invasion of privacy? Maybe because it's not really about the savings at all -- After all, next time you go into CVS, tell them you don't have an ExtraCare card and you don't want to get one. They'll scan one for you...which means that every single person gets the deal. But despite this, I understand its value in marketing, and why firms use it -- to tailor deals and coupons to your purchasing habits.  (For full transparency, I use Google Analytics on this blog). Let's be honest, though, it's not like most consumers even realize it's happening, just like if I didn't tell you, you wouldn't have realized that I was tracking your visit.

All of this is why I was so intrigued by an article in today's Washington Post. The article discusses the fact that banks are placing very targeted ads on customers' online statements. But the clever part is that once the customer clicks on the coupon, they don't have to print anything out or give any code to the business. The next time they frequent that business (say, McDonald's), the discount automatically gets applied. Not only does this remove a barrier for the customer (no need to clip a coupon), it saves banks money because in one sense, it's a rewards program that outside businesses pay for.

From the article: "As banks test new ways to make money and attract customers, they are tucking ads onto the list of recent purchases on consumers' online bank statements. The charge for your breakfast at McDonald's, for example, might be followed with an offer for 10 percent cash back on your next meal at the Golden Arches. There's no need to print a coupon - just click the link, and the chain will recognize your debit card the next time it is swiped."

But it also brings up a larger issue. Some industries (banks) have exclusive access to loads of consumers' personal information. Sure, wholesale clubs like Costco and Sam's Club, based on their business model, track every purchase you make in their stores and target their marketing efforts based on those purchases. But banks go beyond that. They can see virtually everything you spend your money on, and use that to their advantage.

How far should banks be able to go with your information? Should they be able to tailor marketing to your spending habits, when they know your spending habits to the cent? Is this an unfair business practice? How far do businesses go in using your information for marketing purposes? I don't know the answer to this...just something to consider the next time the cashier tells you she can look up your loyalty card number with your phone number...