PURCHASE, N.Y., Dec. 19 /PRNewswire/ -- MasterCard Worldwide and InComm today announced the successful completion of the first cardholder point of sale transaction using the MasterCard rePower Load Network. MasterCard rePower at the point of sale is a new service that allows consumers to add money to eligible MasterCard or Maestro branded prepaid cards at participating merchant locations. InComm will begin offering the solution to the 145,000 stores that comprise its retail distribution network.
MasterCard rePower allows MasterCard-branded prepaid cardholders to easily add money to their eligible prepaid accounts at participating retail locations, bringing a valuable service to the millions of financially "underserved" individuals in the United States. Prepaid cards have emerged as a key enabler of allowing those without a banking history -- a segment that research firm Celent estimates to be 14 million households -- to forge a relationship with a financial institution and better manage their money.
"MasterCard is committed to delivering payment innovations that enhance the cardholder experience while also delivering added value to merchants and financial institutions," said Ron Hynes, Vice President, Americas Prepaid Product Development, MasterCard Worldwide. "As we built our solution, it was critical to remove any barriers that might otherwise keep our partners and customers from participating. We have minimized the work required for merchants to offer MasterCard rePower at the point of sale, eliminated financial hurdles for financial institutions who want to make this available to cardholders, and simplified the cardholder experience."
Eligible cardholders need only to present a participating merchant with an eligible MasterCard or Maestro-branded reloadable prepaid card, along with the money they wish to add. The merchant uses standard transaction codes and transmits the load amount. The transaction is processed in real-time over the MasterCard network, giving the cardholder immediate access to his or her money.
The first transaction was completed at a Village Pantry, a division of Marsh Grocery, store in Indiana. The solution will be implemented across the chain of 148 Village Pantry locations in Indiana and Ohio. MasterCard and InComm are in ongoing discussions with other merchant partners to expand the offering further.
The service brings several benefits to consumers, merchants, and financial institutions alike. Among them are:
* Consumers now have a one-step process for reloading their MasterCard prepaid cards at convenient retail locations, have immediate access to the funds that are added, and can rely on the trust and security of the MasterCard brand when conducting transactions. * Merchants are able to provide added value and service to their consumers, increase store traffic, and do so with minimal impact on point of sale or store operations. In the case of Village Pantry, the service was set up in less than 30 days. In addition, the MasterCard service provides a solution for retailer compliance with applicable laws governing the loading of prepaid cards. * Financial institutions gain easy access to a user-friendly load network that leverages their existing processing and settlement relationships with MasterCard, get an added tool to convert cash to card transactions, and enhance their efforts to reach under-banked consumers by providing deposit capabilities to locations where these consumers live and shop. Issuers are not charged a load fee to participate in this service.
"InComm is excited about the opportunities that the rePower network offers our retail partners and consumers of prepaid debit card products," said Brooks Smith, InComm President and CEO. "We look forward to working with MasterCard to make this service available to our retail distribution network and to make reloading easier for consumers and retailers."
"We chose InComm as our technology partner not only because of their product distribution and technology relationships with many of the nation's leading retailers, but more importantly because of their expertise in fraud mitigation and regulatory compliance relating to reloading at the point of sale," commented Hynes.
Joining MasterCard, InComm and Village Pantry in this successful implementation are Galileo Processing, a leading prepaid processor, and BankFirst, serving as the acquiring financial institution. BankFirst, located in Sioux Falls, South Dakota, is one of the largest issuers of prepaid cards and is also the issuer of the first card to complete a transaction.
"We are excited to participate in the MasterCard rePower launch," said Dave Wilkes, Chief Marketing Officer of Galileo Processing, Inc., "and foresee the launch as a strategic benefit to all card programs supported by Galileo's platform."
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