EL DORADO, Ark. -- Emerging credit-card firm Revolution Money has announced that El Dorado, Ark.-based Murphy Oil USA has signed onto its services for its Murphy Express locations. Murphy customers who sign up for the card and are approved will receive up to $50—a $10 savings on each of their first 5 purchases of $25 or more—plus an ongoing discount of three cents per gallon. Murphy's nearly 1,000 locations are typically located in Wal-Mart Supercenter parking areas in 20 states.
Revolution Money and its "RevolutionCard" offer several merchant benefits, including:
Savings. [image-nocss] RevolutionCard is a general-purpose credit card that charges no interchange fees and only a 0.5% processing fee per transaction to accept. Being one of the first personal identification number or PIN-based credit cards for purchases in the United States, providing strong security for customers, which means fewer costly transaction disputes, the company said. Instant access to credit and increased approval rates for customers. Revolution Money partners with multiple banks so it can extend credit to more customers. Merchants who issue RevolutionCard have seen increased approval rates up to three times greater than with traditional card brands, the company said.Founded in 2007, the St. Petersburg, Fla.-based company said the card is already accepted at more than 300,000 locations.
And while retailers shouldering the burden of exorbitant credit-card fees may be seriously considering payment alternatives, speakers at a NACS Show 2008 workshop in Chicago earlier this week advised they take a sober approach and consider all the elements necessary for success.
For instance, taking on a debit card tied to automated-clearinghouse (ACH) processing may bypass credit-card fees, but comes with the added expense of issuance, signing people up and encouraging customers to use the new cards, according to Doug Rodewald, partner, W. Capra Consulting Group LLC, Chicago.
"Issuance is what hinders others who may want to compete with Visa and MasterCard," Rodewald told the approximately 120 people in the audience.
Rodewald and his co-panelist, Jim DuBoyce, director of payment practice for W. Capra, outlined important steps in evaluating whether or not alternative payments are right for a chain. Some of these steps included:
Objectives. Conduct a thorough review of the project's objectives. Strategy. Here is where the question of issuance becomes central. Is it a program that builds upon an existing loyalty program or will it be something that's starts from scratch? Review of available products. Initiate a thorough review of suppliers, rates and ongoing support. Evaluation of the chain's offer. Look internally to review what the company will ultimately offer the consumer. Rodewald asked, "What is your brand?" Selection of products and vendors. Take the evaluation phase to the next step, vendor commitment. Execution. Roll out the chosen program.Deciding to execute an alternative-payment program in-house is a proactive choice, Rodewald explained. To address the problem of high credit-card fees, some retailers may opt for a more passive approach, such as asking banks for billing transparency (which can identify hidden markups) or identifying suppliers who offer more support, for instance, with regards to issuance.
Rodewald and DuBoyce also mentioned Revolution Money, which, at least in terms of cost, challenges the reigning credit giants. Though limited in its current penetration, the W. Capra consultants said the alternative is a viable solution for retailers.
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