The National Payment Card Association is expanding into the grocery store and supermarket vertical sector with plans to bring its lower interchange solution to the growing industry.
The move comes in response to the Federal Reserve’s new rule on debit card interchange fees. NPCA said banks will seek to regain the revenue they stand to lose with the new rule by steering consumers away from debit and towards higher interchange products.
“Since 2004, National Payment Card Association has been providing merchant branded debit cards in the petroleum/c-store sector and we are now expanding rapidly into the supermarket and grocery sector,” NPCA President Joe Randazza said, NACSonline.com. reports. “Our product is PIN-based, available on the rails of existing PIN networks such as Pulse, secure, and guaranteed. There are no chargebacks and settlement funds are received the next business day.”
NPCA’s solution works similarly to the way a bank issued debit card works, with no POS changes required, NACSonline.com. reports.
The plan includes a merchant-branded online enrollment engine, access at any time to a consumer portal, a merchant portal with a robust set of databases and business analytical tools. In addition, NPCA’s plan provides an email engine that delivers communications to cardholders for confirming purchases and enables leveraging for special offers or incentives as well as information that belongs to the retailer, not the bank.
“Our goal is to empower merchants and retailers and in presenting our solution we can show them what they can do for themselves to protect their profits and to build loyalty,” Randazza said, NACSonline.com. reports.