Dive Summary:
- Safeway is trialing its new Fast Forward debit card in Sacramento, Calif. area stores in a bid to reduce credit and debit card transaction processing costs.
- Customers do not need to hand over their Fast Forward debit card at checkout; customers can type in their phone number, which is linked to their card, and personal identification number for security.
- The Fast Forward card earns customers twice as many gas reward points if they pay any other way; using the card, customers can earn $0.20 off per gallon on every $100 spent at Safeway, with a maximum reward of $1 off per gallon.
From the article:
"... Non-bank-issued debit cards like Fast Forward could be the wave of the future for retailers seeking to lower the cost of processing payments, according to experts on electronic payments.
'Safeway’s program is reducing the cost of the transaction by leveraging their customers’ own checking accounts,' said Lanny Byers, an electronic payments and loyalty expert who is managing director of CHyp USA, a Consult Hyperion company with U.S. headquarters in New York. 'By clearing the transaction via the Automated Clearing House (ACH) electronic network, Safeway can reduce their costs for processing transactions over traditional credit and debit cards.' ..."
