Headline News - July 11, 2011

On the web: Using Facebook Credits as Ecommerce Sales Incentives - AuctionBytes PSECU's Remote Deposit Honor System - NetBanker 18 Fun Facts About Credit Cards - MSN Money 10 Reasons I'm Cancelling My Credit Cards - SmartMoney.com California Replacing Unemployment Checks with Debit Cards - Bakersfield.com Korean Govt To Credit Card Firms: We’re Watching You - Wall Street Journal Tapjoy Scores $30M to Boost Mobile App Monetization - FierceMobileContent Blaming the Fed’s Durbin Rule, Tempo Payments Prepares to Shut Down - Digital Transactions On the wires: Spendvision’s new eMoney Module Enables Businesses to Track and Manage NFC Transactions Regions Bank...

Sheetz Offers Rewards Debit Card Powered by Tempo

Tempo has announced that the Sheetz convenience store chain is now utilizing the Tempo web-based debit card platform to offer debit/rewards cards that can be used everywhere Discover cards are accepted. Tempo’s "unique software-as-a-service technology makes it easy for companies to offer rewards debit cards and provide the ability to link an independent branded debit card to a customer’s existing checking account, a capability sometimes referred to as decoupled debit."

Manilow Fund Uses Tempo's Affinity Debit Platform

Tempo has announced that its affinity debit platform is being utilized by the Manilow Fund for Health and Hope to provide donors with debit cards that support the Barry Manilow-created nonprofit organization’s campaign to save public school music programs “one swipe at a time.” Each time a Manilow Fund for Health and Hope debit card is used to make a purchase, the organization will receive a portion of standard transaction fees, utilizing cardholders’ purchasing power instead of out-of-pocket money to increase the Fund’s revenue. Proceeds will be used by the Manilow Fund for Health and Hope’s Manilow Music Project to...

Tempo Powers Arthritis Foundation Debit Cards

Tempo has announced that the Arthritis Foundation will be offering its members and contributors an affinity debit card powered by Tempo. According to Tempo, "every time Arthritis Foundation debit cards are used to make a purchase, the organization will receive a portion of standard card transaction fees. The cards can be used anywhere Debit MasterCard cards are accepted and also provide cash-back and ATM withdrawal access to the cardholders’ existing checking accounts." “This is a great opportunity for supporters of the Arthritis Foundation to generate additional contributions by leveraging their everyday purchasing power,” said Scott Walters, Arthritis Foundation group vice...

Tempo Powers New Dogster & Catster Affinity Debit Cards

Dogster, Inc., creator of the web destinations Dogster and Catster, has announced it is now offering affinity debit cards that members can personalize with a photo of their pet that are enabled by Tempo’s Web-based debit card platform. Dogster and Catster are the fastest growing pet owner destination sites on the Internet, providing information and entertainment to dog lovers and cat lovers. Dogster and Catster debit cardholders will receive cash-back rewards for every signature-based purchase, with rewards automatically deposited into cardholder accounts on a monthly basis. Tempo technology makes it easy for organizations to offer affinity debit cards and provides...

Tempo Introduces New Affinity and Co-Branded Debit Cards

Tempo has introduced a new Web-based platform that it says "enables organizations to quickly and easily offer affinity and co-branded debit cards to customers, contributors and members. These organizations can now provide open loop debit cards and offer rewards ranging from cash-back to charitable contributions. The debit cards enabled by Tempo are issued by First Bank & Trust, of Brookings, SD, part of Fishback Financial Corporation. Tempo’s platform enables these cards to be linked to cardholders’ pre-existing checking accounts." Tempo-enabled debit cards are affinity partner-branded, generate valuable cardholder rewards, and can be used for online and offline purchases and ATM...

HSBC, Pathmark Plan Loyalty Rewards Debit Payment Card Program

HSBC Finance Corporation’s card and retail services business and Pathmark Stores have announced "an agreement to offer a multi-purpose rewards and payment card for supermarket customers. The new Pathmark Advantage Payment Card enhances the current Pathmark Advantage Club card by providing an easy and superior one-swipe payment process that also generates loyalty rewards." The card is linked to the consumer's checking account and functions as a PIN-debit card for purchases. The cards will also be accepted "at more than 200,000 merchant locations in the U.S. that participate in the Tempo Payment Network." A pilot launch is planned for later this...

An Update on Tempo Payments

Tempo announced a new decoupled debit strategy called Tempo Debit about two months ago. We recently asked Tempo Payments CEO Mike Grossman for an update on his company's activities since that announcement. Our Q&A exchange with him follows. Q. How would you define 'success' for Tempo in the coming year? A. We have three key objectives: 1) forging relationships with several large new issuers interested in decoupled debit; 2) enabling our initial decoupled debit issuer - HSBC - to successfully launch programs with major merchants; and 3) expanding our technology platform to include support for PIN credit and stored value....

Tempo Introduces Decoupled Debit for FI's, Hosted Payment Platform

Tempo Payments made two announcements this morning. The first, a "Decoupled Debit Option for Financial Institutions" that "enables financial institutions and other issuers to rapidly deploy comprehensive ACH-based debit card programs." The second, the "availability of the Tempo Payment Platform, the first hosted solution that enables financial institutions and other issuers to rapidly deploy innovative card payment solutions." Here's the Tempo Debit announcement: Tempo Payments, Inc., today announced the availability of Tempo™ Debit, the first debit solution that enables financial institutions and other issuers to rapidly deploy comprehensive ACH-based debit card programs. Shattering long-standing barriers to increased debit card use,...

HSBC and CVS/pharmacy Launch Tempo Network Loyalty Rewards Card

HSBC Finance Corporation’s card and retail services business and CVS/pharmacy have announced they have entered into an agreement to offer a new CVS-branded Tempo Payment Network loyalty rewards payment card. Planned for a mid-2007 pilot launch at the retailer’s 141 Indianapolis-area stores, the CVS ExtraCare Plus card will provide CVS/pharmacy customers with a convenient and secure multipurpose rewards and payment solution that links the cardholder’s existing checking account to their existing ExtraCare account. “We look forward to offering CVS/pharmacy and its customers this truly innovative program,” said Joe Hoff, managing director, retail services for HSBC. “With more than 30 years...

Murphy USA Joins Tempo Payment Network

Tempo Payments has announced that "Murphy USA has joined the Tempo Payment Network and is initiating a system-wide implementation of Murphy-branded PIN debit cards at more than 1,000 gas stations, with an initial roll-out to 111 stores in Atlanta, Dallas/Ft. Worth, and Houston." Tempo said that Murphy USA will reward consumers using the card with a one cent per gallon discount at the pump. "Tempo's nationwide payment network enables us to reduce certain transaction costs and share the savings with our customers when transactions are processed through Tempo," said Bryan Botkin, Manager, Special Services, with Murphy USA. "Few consumers realize...

QuikTrip Joins Tempo Payment Network

Tempo Payments, has that "QuikTrip Corporation, a convenience/gasoline retail chain, will counter the high cost of credit card acceptance by offering a company-branded debit card that will provide customers with lower-priced gas at the pump." Starting with one of its major markets in the second quarter of 2007, QuikTrip will begin a phased rollout of a debit card that brings immediate price relief to its customers and can be used at 200,000 other retail outlets nationwide that accept payments via Tempo, including Wal-Mart, Sam's Club and CVS. "Reducing credit card fees is a critical strategic initiative for QuikTrip and we're...

Debitman Now Tempo Payments

Debitman Card is announcing Tuesday that it's got a new company name - Tempo Payments, Inc. - and will also be announcing a new agreement with Fiserv EFT to provide access to the Tempo Payment Network in Q1 2007. A new Tempo web site carries these announcements tonight. Fiserv EFT operates one of the largest debit authorization gateways in the U.S., which will provide expanded processor access to the Tempo Payment Network for merchants issuing and accepting retailer-branded debit cards. "Fiserv believes any solution that gives consumers additional options to transact electronically ultimately benefits the electronic payments industry as a...

Mobile Phones Replacing Cards, Cash, And Checks

Mark Schwanhausser writes for the San Jose Mercury News about mobile payments - saying that "eventually Americans will be able to choose among high-tech alternatives that will transform how they shop, pay for goods, borrow money, dole out allowances, transfer cash around the globe and manage their finances." Schwanhausser reports that San Francisco "Bay Area companies are playing influential roles mapping the way, from old-school titans such as Wells Fargo and Visa USA to New Economy ventures such as PayPal, Obopay and Yodlee." In a sidebar, Schwanhausser takes a look at some of the experiments underway.

More on Wawa/Debitman

Debitman Card issued a press release today providing more details about convenience store chain Wawa joining the Debitman payment network and issuing the private-label Wawa Check Card. According to the press release, the new Wawa Check Card will "reward customer loyalty with an initial $5.00 gift card after the first use, followed by cash rebates on every purchase" that will be deposited monthly directly into the customer's bank account that is linked to the Wawa Check Card. Wawa, which operates more than 550 stores in the mid-Atlantic region and is perennially ranked in the top 100 of Forbes Magazine's list...

Wawa To Issue And Accept Debitman Cards

Convenience Store Decisions reports that Debitman has announced that Wawa, the privately-owned Pennsylvania-based convenience store chain, has joined the payment network and will issue the private-label Wawa Check Card. The card will reward customer loyalty with an initial $5 gift card after the first use, followed by cash rebates on every purchase. "Debitman provides us with the opportunity to reduce the cost of credit and debit card interchange fees, enabling us to share the savings with our customers through an easy-to-use cash rebate program," said Bob Riesenbach, Wawa manager of new initiatives. "The Wawa Check Card is available to any...

Wesco ACH Debit Cards Offer Savings For All

Dave Alexander writes for the Muskegon Chronicle about the launch of new Debitman-based debit cards by Muskegon, Michigan-based Wesco that he says "will provide the regional chain of gas stations and convenience stores relief from high bank card transaction fees and provide discounts to customers." Wesco and Debitman announced the new card program last week.

WESCO Cuts Interchange Fees With Debitman

Debitman Card has announced that WESCO Stores has joined the The Retailer's Network and is now issuing its own branded debit cards to customers at its 51 Michigan locations. WESCO is combining the debit card with a consumer loyalty program that automatically discounts gas prices at the pump for card users and in the future will incorporate merchandising promotions. WESCO recently completed an in-depth pilot at two of its locations utilizing a privately issued debit card and quickly concluded that it could offer consumers relief from high gas prices while reducing the exorbitant costs of traditional credit and debit card...

The Nilson Report - Issue 858

The latest Nilson Report has arrived featuring an in-depth look at general purpose cards in Asia/Pacific (subscription only). Among other feature articles, this issue also has an article discussing credit card fraud in the US, merchant debit cards such as Debitman, web authentication from 41st Parameter, and a continuation from the last issue re: credit card debt sales.

Debitman Announces Series B Financing, Patent

Debitman has announced the closing of an $8.7 Million Series B Financing from investors including HSBC Retail Services, a U.S. business unit of HSBC -North America, Cardinal Venture Capital and Selby Venture Partners. The company also announced it has received a notice of allowance from the U.S. Patent and Trademark Office approving the company's patent for a system that enables the use of interoperable merchant-branded consumer debit cards. "Debitman is poised for rapid growth," said Debitman CEO Mike Grossman. "The participation of HSBC, one of the leading private label card issuers in the U.S., is a powerful endorsement of the...

HSBC Forms Alliance with Debitman Merchant Card Network

HSBC - North America's retail services business has announced a strategic alliance with electronic payment network operator Debitman Card, Inc. to accelerate growth in Debitman's debit card platform, known as "The Retailer's Network." Merchants participating in The Retailer's Network enjoy lower cost fees for card transactions. In addition, merchants issuing cards through the network share a portion of the interchange revenue whenever their branded cards are used at any participating merchant. The network's patent-pending debit card system supports a variety of card programs and can accommodate merchant-specific loyalty programs. HSBC Retail Services, a leading provider of private label retail cards,...

Debitman Announces New Supermarket Pilots

HAC Inc., operator of 67 supermarkets in Oklahoma and Kansas including 49 Homeland Stores, has announced it is launching its own branded debit card, the One Card Plus, on the Debitman network at five pilot locations. Binghamton Giant Markets in Binghamton, NY has also announced its own Giant EXTRA Plus debit card program running on the Debitman network. "We've expanded our One Card reward program to provide shoppers with rewards and payment benefits in one card," said Darryl Fitzgerald, President and CEO at Homeland. "Our shoppers can now walk into their Homeland store with just the One Card Plus and...

Wal-Mart Accepts Debitman Cards Nationwide

Debitman has announced that Wal-Mart Stores, Inc. is now accepting Debitman cards at checkout in all Wal-Mart and Sam’s Club locations across the United States. “We are thrilled to be working with Wal-Mart,” said R. Scott Hatfield, President and COO of Debitman. “There can be no better validation of our business model and company mission.”

Debitman Closes $3.6 Million Financing

Debitman has announced the closing of a $3.6 million equity financing led by Cardinal Venture Capital with participation by Selby Venture Partners. Eric Dunn, General Partner of Cardinal and Jim Marshall, General Partner of Selby have joined the company's board of directors. Dunn will also be chairman of the board. "Debitman offers a compelling value proposition that has the potential to revolutionize the market for debit cards," said Eric Dunn. "Retailers can simultaneously cut their costs while enhancing customer loyalty. It’s a powerful combination." "Today’s funding round is an emphatic vote of confidence in our strategy and trajectory," said R....

Merchant-Controlled Debit Networks

Celent analyst Gwenn Bezard writes in Bank Systems & Technology Online about the evolution of merchant-controlled debit networks. To succeed, Debitman will have to overcome these challenges, the main one being enlisting large retailers as issuers to build up transaction volumes. Fortunately for Debitman, rising competition between Visa Interlink, MasterCard and the regional networks is very likely to keep pushing the PIN debit interchange rates up, thus creating a favorable environment for the venture. To be sure, chances for a merchant-controlled debit network to gain momentum in the U.S. have never been so high.