Merchant Issued Debit Cards


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Merchant Issued Debit Cards

  1. 1. Merchant Branded Debit CardProgram Overview
  2. 2. NPCA: Company HighlightsNational Payment Card Association (NPCA) was established in October 2004. Thecompany is venture funded with the founders maintaining majority ownership. The Company headquarters is located in Coconut Creek, Florida.The Product: Turn-key merchant branded debit loyalty programs Combining payment and rewards on a single plasticThe Systems: Proprietary and are supported by the staff that built them. All source code and IP is owned by the Company Patent has been issued.The Customers: Currently provides to national and regional petroleum andconvenience store merchants.
  3. 3. Merchant Branded Debit Cards1. Payment Card– Functions like and electronic check– Branded to merchants specification– Processed via the ACH– Fixed flat fee per transaction– Transactions are guaranteed to merchants (no chargebacks)– Spending limits apply– PIN based2. Consumer Loyalty– Rewards– Each merchant decides their own discount or reward feature
  4. 4. Why The Program is ofInterest to Retailers• Drive customer loyalty• Earn additional store visits• Increase sales• Differentiate• Target promotions• Communicate with customers• Displace bank cardtransactions that have highercost• Gain added control over costof payments• Influence consumer paymentbehaviorsOffensively DefensivelyStrategy
  5. 5. The Value Proposition For Retailers &Consumers1. Transaction Fees are fixed $.15 per transaction in place of swipe feespaid today for Visa, MasterCard, AMEX, Discover, etc.2. Used to provide a reward (price rollback at the pump on everytransaction) to retailers’ customers who enroll for GasCapRewards Card3. Reward provides consumers with their reason to carry another paymentcard in their wallet.4. Builds loyalty and sales lift5. Retailers in turn build a customer data base that they can use foroffering coupons, promotions, or other forms of communicationsdirectly to their customers.
  6. 6. The $ of Customer Value—Case Study• 51 Locations• 15,227 cardholders used the card 2nd week ofApril• Spent a total of $839,472• Per store = $16,460• Average value per customer that week was $55• Annualized value = $2,866 per cardholder
  7. 7. Client with small number of locations:• Markets actively• Engages employee participation• Focus on enrolling customers• Offers robust per gallon discountClient with medium number of locations:• Markets actively• Focuses on enrolling customers• Offers robust discountClient with larger number of locations:• Has existing loyalty programwhich has caused someconsumer confusion at time ofenrollment• Offers robust discount rateBenchmarking Exampleof 3 NPCA ClientsCards enrolled drive transactions,not number of store locations.Locations MonthlyTransactionsEnrolled Cards
  8. 8. NPCASends ACHDebitsNPCA ACHProcessorACHProcessorCredits Total PurchaseAmount to Merchant’sAccountACHProcessorSends CardholderDebits to Cardholder’sBankEnd of Day End of MonthNPCA InvoicesMerchant NPCATransaction FeesSettlement
  9. 9. NPCA Program Management Include: Program Launch Program Design Enrollment engine Transactionprocessing/authorization Merchant Account Management Transaction Guarantee Communications with customers Settlement of funds Cardholder debits via ACH Consumer portal Consumer statements Merchant portal Call center support Disputes Handling and Resolution Regulatory complianceMerchants Pay forDesign & Productionof Cards and Collateral
  10. 10. ConsumerExperience
  11. 11. Process Overview: EnrollmentConsumers request cardin the merchant’s storeCards are branded tomerchant’sspecificationsConsumers enroll online:• enter card number• select PIN• provide personal information• provide checking account numberWelcome emailBranded toThe Merchant’sSpecifications.Note: Paper EnrollmentCan Be SupportedNPCA verifiespersonand checkingaccountbefore card isactivated
  12. 12. Process Overview: Enrollment
  13. 13. Option 1 For PurchasesMerchant routestransaction toMerchant AcquirerNetworkHubTransactionrouted to NPCA forauthorizationConsumer receivesemail verification of transactionwithin 2 hoursSends debit to consumer’schecking account daily via ACH…Any returns are handled by NPCAConsumers insert card in POS reader,enter their PIN and receive their reward.
  14. 14. Option 2 For Purchases: Router SolutionMerchant routestransaction toNPCANPCA RouterTransactionrouted to NPCA forauthorizationConsumer receivesemail verification of transactionwithin 2 hoursSends debit to consumer’schecking account daily via ACH…Any returns are handled by NPCAConsumers insert card in POS reader,enter their PIN and receive their reward.
  15. 15. Marketing
  16. 16.  NPCA Will Design Cards in Partnership with Merchants Card Design is stepping stone for all other merchantbranding used in the program• Cardholder emails• Web-site branding• POP; other collateral• There is a one-time fee for design package. Cards manufacturing is done with third party NPCA has alliances with several card manufacturersCards and Collateral
  17. 17. Card – Front & BackProcess Overview: Card
  18. 18. Consumer Trifold
  19. 19. POPSignage
  20. 20. Web Site
  21. 21. Pole Stand With Brochures
  22. 22. Customer Data Base• One of the key value propositions for theprogram.– Name, address, phone number, email address– Shopping behaviors• Merchants can download the data and use itinternally or…• Merchants can have NPCA executepromotions via email blasts. (fee for service)
  23. 23. Clients can insertcoupons into emails.―I wanted to take a minute to thank youfor this email notification system. I hadnever thought about such a service, but itbecomes obvious what an excellentfraud prevention tool it is. Amazingly, nobank I’ve heard of is doing such a thing.‖Cheers!Sean KeatingNitro, WV
  24. 24. Examples of Email Promotions
  25. 25. Promotions: Email Campaigns
  26. 26. Customer Service: Consumer PortalConsumers can:• Make changes to their account• View transactions• Report lost cards• Receive statements• Communicate with NPCA customer service.Customers receive email when theirmonthly statement is available.
  27. 27. Call Center ServiceServicing: All incoming calls from consumers byphone or online portal• System-generated email responsesfor portal Update customer accounts as needed Resolves 99.9% of all incoming calls Monday – Friday from 9:00am to6:00pm (Eastern)
  28. 28. Online Portal for Merchant Reportingwww.npcmrs.comReports Daily, weekly, monthly, yearly activity Who has enrolled Frequent shopper—who they are andhow much they spend Enrollment statistics Mailing list Program PerformanceMerchant Portal & Reporting
  29. 29. Project Initiation Merchant Services Agreements ACH Agreements Information gathering – customer profile, site surveys Coordination of setup of ACH transaction processing Requirements gathering & gap analysisProject Planning Project schedule Project tasks & issues listExecution / Monitoring Card design & collateral Regularly scheduled project meetings (NPCA internal) Regularly scheduled project conference calls with clients Project schedule updates Customer approval and sign-offProject Management Process…Merchant Launch
  30. 30. Peter GuidiVP Sales293-233-8097 (home)207-318-2874 (mobile)pguidi@nationalpaymentcard.comPat MorganDirector of