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 now able to do so by offering our customers our own QuikTrip-branded debit card utilizing the Tempo Payment Network," said Paula Cotten, QuikTrip Treasurer and Vice President of Finance. "At the same time, the Tempo program enables us to provide an immediate benefit to those customers who are helping us control our costs."
Steady increases in bank-issued credit and debit card fees charged to merchants have severely impacted gas retailers. The effect of higher gasoline costs has exacerbated the issue. Because card fees are based on a percentage of the sale, gas retailers pay a proportionately higher share of their revenue in interchange fees and realize lower profit margins.
"As gasoline prices increased over the past two years, retailers actually made less on each gallon they sold due to the outrageous fees imposed by the credit card companies," said Tempo CEO Mike Grossman. "Savvy merchants like QuikTrip are enlisting consumers in the cost-control effort by passing on savings to encourage the use of their own lower-cost debit cards."
Tempo provides all card-accepting merchants with a low fee per transaction that is significantly less expensive than traditional credit and debit cards.
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