EL DORADO, Ark. -- Murphy USA has joined Tempo Payments Inc.'s Tempo Payment Network and is initiating a system-wide implementation of Murphy-branded PIN debit cards at more than 1,000 gas stations, with an initial rollout to 111 stores in Atlanta, Dallas-Fort Worth and Houston.
As a result of the substantially lower interchange fees it will realize by shifting payments away from bank-issued credit and debit cards, Murphy USA will reward consumers using the card with a one-cent-per-gallon discount at the pump, it said.
High card-acceptance [image-nocss] fees on MasterCard and Visa credit and debit cards have dramatically impacted profit margins in the U.S. gasoline and convenience store markets, San Mateo, Calif.-based Tempo Payments said. Gas retailers on average pay about 2% of the cost of each card-based transaction, which has dramatically impacted margins as the cost of gasoline has increased.
Tempo's nationwide payment network enables us to reduce certain transaction costs and share the savings with our customers when transactions are processed through Tempo, said Bryan Botkin, manager of special services, with Murphy USA.
Murphy USA debit card holders will also be able to use the card for purchases at more than 200,000 U.S. merchant locations that participate in the Tempo Payment Network.
Few consumers realize that MasterCard and Visa card issuers tack on hidden charges that merchants are forced to pass on to their customers, said Mike Grossman, Tempo CEO. Murphy and many other merchants are concerned that card-based payment fees outpace free market economics by continuing to escalate, even though increased volumes should lower the per-use transaction cost.
The Tempo Payment Network drives down the cost of accepting card payments and fosters consumer loyalty, the company said. Tempo card-issuing retailers have initiated a number of programs to share those benefits with their customers, ranging from rewards points, to fuel discounts, to cash rebates. Tempo provides all card-accepting merchants with a low-fee-per-transaction alternative to bank-issued cards.
Murphy USA Marketing Co. is the retail sales division of Murphy Oil USA Inc. and operates high-volume, low-cost retail gas stations under the Murphy USA brand across 21 states.
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