WESCO Cuts Interchange Fees With Company Debit Card
SAN MATEO, Calif.-- WESCO Stores joined the Debitman Card, Inc., payment network, called The Retailer's Network, and is now issuing its own branded debit cards to customers at its 51 Michigan locations.
"Credit card interchange fees are phenomenally high and adding to already high gasoline costs at the pump," said Rachelle Osborn, IT Director at Wesco. "We are always looking at ways to build value by offering quality while reducing cost and Debitman was a perfect fit. Issuing our own debit card leverages the Debitman network to sharply reduce our processing fees, so we are able to turn those savings back to participating consumers with an automatic two-cents-per-gallon price reduction at the pump."
Unlike the continually increasing fees set by Visa, Mastercard and the banks that issue their cards that are based on a percentage of the total transaction amount, Debitman provides all card-accepting merchants with a low flat-fee per transaction that's significantly less expensive when compared with bank-issued debit and credit cards, the company reported. Card-issuing merchants experience even lower costs through substantial rebates earned when their cards are used at any participating retail operation.
WESCO is also combining the debit card with a consumer loyalty program that now automatically discounts gas prices at the pump for card users, and will incorporate merchandising promotions in the future.
Consumers who sign up for WESCO's debit card experience savings on gas purchases at any WESCO store, as well as the convenience of using the card at more than 200,000 merchant locations in the U.S. that participate in The Retailer's Network, including Wal-Mart, Sam's Club, Barnes & Noble, and CVS.
Osborn noted that WESCO processes approximately 2.5 million transactions per month, with more than 70 percent charged to Visa and Mastercard debit and credit cards, which both carry costly transaction fees.
"Debitman made it simple for us to launch a program for customers to easily sign up," Osborn explained. "Once they receive their debit card it can be used in-store or at the pump exactly the same way as any other payment card, except that at the pump it recognizes that it is a WESCO debit payment and automatically drops the gasoline price 2 cents per gallon. That's a win for our customers and for WESCO."
"Credit card interchange fees are phenomenally high and adding to already high gasoline costs at the pump," said Rachelle Osborn, IT Director at Wesco. "We are always looking at ways to build value by offering quality while reducing cost and Debitman was a perfect fit. Issuing our own debit card leverages the Debitman network to sharply reduce our processing fees, so we are able to turn those savings back to participating consumers with an automatic two-cents-per-gallon price reduction at the pump."
Unlike the continually increasing fees set by Visa, Mastercard and the banks that issue their cards that are based on a percentage of the total transaction amount, Debitman provides all card-accepting merchants with a low flat-fee per transaction that's significantly less expensive when compared with bank-issued debit and credit cards, the company reported. Card-issuing merchants experience even lower costs through substantial rebates earned when their cards are used at any participating retail operation.
WESCO is also combining the debit card with a consumer loyalty program that now automatically discounts gas prices at the pump for card users, and will incorporate merchandising promotions in the future.
Consumers who sign up for WESCO's debit card experience savings on gas purchases at any WESCO store, as well as the convenience of using the card at more than 200,000 merchant locations in the U.S. that participate in The Retailer's Network, including Wal-Mart, Sam's Club, Barnes & Noble, and CVS.
Osborn noted that WESCO processes approximately 2.5 million transactions per month, with more than 70 percent charged to Visa and Mastercard debit and credit cards, which both carry costly transaction fees.
"Debitman made it simple for us to launch a program for customers to easily sign up," Osborn explained. "Once they receive their debit card it can be used in-store or at the pump exactly the same way as any other payment card, except that at the pump it recognizes that it is a WESCO debit payment and automatically drops the gasoline price 2 cents per gallon. That's a win for our customers and for WESCO."