National Payment Card Association Launches GasCapRewards

ACH Decoupled Debit provider creates program for independent gas retailers

COCONUT CREEK, Fla. -- National Payment Card Association, an early player in ACH decoupled debit cards with payment settlement system that offer merchants lower transaction fees than credit or debit cards, has announced it has launched GasCapRewards, a nationally branded, lower-cost, turnkey payment system.

The nationally branded turnkey debit card payment system is designed for the nation's 96,000 independent operators. The program offers these retailers a lower, fixed-cost transaction settlement system that is substantially less than the percentage-based fees charged by [image-nocss] traditional credit and debit card networks, the company said. In addition to helping merchants pump profits back into their businesses, the National Payment Card Association program provides merchants with realtime consumer purchasing information that is not currently available from other payment methods.

This information can be used in conjunction with existing loyalty programs.

GasCapRewards offers lower, fixed-cost transactions; reduced payment settlements system; no chargebacksguaranteed funds; transaction/loyalty reporting system.

GasCapRewards helps reduce card acceptance costs and build store traffic and loyalty by providing an immediate price rollback at the time of purchase that is self funded from the interchange savings from credit cards.

"Right now with the GasCapRewards program, smaller, independent merchants have the opportunity to pay less in interchange fees than the largest gas chains are paying Visa and Mastercard," said Joe Randazza, president of National Payment Card Association. "GasCapRewards is a nationally branded, turnkey program that includes everything from the technology and software powered by National Payment Card Association to POS and marketing materials that will drive consumer acceptance."

The GasCapRewards program is powered by National Payment Card Association's payment system which processes transactions through the Federal Reserve Automated Clearing House (ACH) resulting in lower merchant fees and a self-funded loyalty program that provides immediate savings to consumers. Specifically, the program benefits retailers by helping them shift the costs normally associated with the interchange fees credit card companies normally charge on each transaction to the National Payment Card Association lower cost and fixed transaction fee. The merchant can then use some of the savings to change customers' payment behavior by passing some of that savings along to them.

The transaction is debited from the customer's account and is processed through the Federal ACH System that handles billions of transactions per quarter. The merchant settlement is the next business day. The system is cheaper, costing only a fraction of what most retailers normally pay in merchant service fees, because the funds come directly from the consumer's bank account, removing the middlemen in the credit card and debit card networks altogether.

Credit card fees remain one of the biggest expenses for retailers making it harder and harder to conduct business and attract customers. Merchants employing similar National Payment Card Association programs have repeatedly stated that the solution provides a way for them to build closer relationships with customers by helping both parties save money, the Coconut Creek, Fla., company said.

National Payment Card Association's charge to merchants is a flat-fee per transaction on a loyalty card, a third-party card or driver's license. The fees normally represent over a 60% savings compared to current standard processing fees. Under the GasCapRewards program, merchants can expect costs to vary depending on need but for as little as $500 per store POS marketing materials can be ordered. Installation of the National Payment Card Association Transaction Router varies greatly but the system can cost as little as $200. There is a $95 setup fee required with each application and a $25 minimum monthly transaction fee.

The ACH Decoupled Debit Card is not a credit or debit card that is linked through the national banking networks, but rather utilizes a user ID for consumer authentication and is processed through the National Payment Card Association network. A Decoupled Debit Card can be a loyalty card, a membership card or driver's license. National Payment Card Association has filed a series of patent applications for methods of payment processing with a driver's license.
National Payment Card Association is a member of the EFT Network, which is a part of the Electronic Check Council of NACHA. NACHA is the rule-making body for all electronic funds transfers made through the ACH.