SAN MATEO, Calif. -- Debitman has changed its name to Tempo Payments Inc. The company provides retailers with branded debit card programs that foster consumer loyalty and drive down the cost of card payments.
After announcing four new retailer-branded card programs earlier this year, and that Fiserv EFT will provide expanded processor access to the Tempo Payment Network for merchants issuing and accepting retailer-branded debit cards, Tempo said it is embarking on its next growth phase by building visibility for the Tempo Payment Network.
Just as banks issue their own branded cards with a unifying MasterCard or Visa logo, retailers will be able to issue their own branded cards with a unifying Tempo logo that assures consumers of their ability to use the cards nationwide.
Our relationships and ability to work with national processors and existing [point-of-sale] POS systems makes retailer-branded debit card issuance a quick, simple and cost-saving alternative, said company CEO Mike Grossman. We have raised substantial investor funding to finance our market penetration, and we have struck a chord with retailers who are fed up with outrageous fees imposed by MasterCard and Visa issuers.
This year Tempo has announced retailer-branded card programs by grocery chains Homeland Stores and Binghamton Giant Markets, and convenience/gas chains Wesco Inc. and Wawa Inc.; a strategic alliance with HSBC Retail Services; a Series B funding round of $8.7 million in financing from investors including HSBC Retail Services, Cardinal Venture Capital and Selby Venture Partners; a U.S. patent covering the company's business model for enabling the use of interoperable merchant-branded consumer debit cards; and processor access via one of the largest U.S. debit authorization gateways, operated by Fiserv.
Credit card interchange fees function like a hidden tax on consumer purchases, Temp said, by forcing retailers to increase prices to offset costs; in 2005, MasterCard and Visa earned an estimated $30 billion from consumer card-based transactions. Tempo, however, provides all card-accepting merchants with a low fee per transaction that is significantly less expensive and provides card-issuing merchants with co-marketing funds that can be used to promote use of the cards. The Tempo Payment Network requires no merchant changes at the point of sale because Tempo has established relationships with major nationwide processors to accept retailer-issued cards through existing payment terminals and processor networks.
Consumers and merchants alike are tired of the dictatorial practices of the old-line card associations that are focused only on increasing their own profits by driving up the fees charged at the point of sale, Grossman said. The current system has reached the heights of insanity when card-issuing banks penalize the use of safer PIN-secured debit solely because they reap larger fees through signature debit and force retailers to underwrite the costs of bank loyalty rewards programs. Ultimately it all comes out of the pockets of consumers. Tempo has a better economic model for retailers and consumers alike.
Retailer-issued debit cards using the Tempo Payment Network can be used at more than 200,000 retail locations nationwide, including all Wal-Mart, Sam's Club and CVS stores.
The Tempo Payment Network is a PIN-based payment network for retailer-issued and branded debit cards. The company is privately held and headquartered in San Mateo, Calif.
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