Drivers License Doubles as Debit and Membership Card

An innovative new payment method for consumers is popping up at convenience stores in various states across the country. This e-payment program allows consumers to be members of a discount and payment program without the need to carry around yet another card in their wallet. In fact, this program works entirely through the member’s drivers license

The driver’s license program is set up through a company called National Payment Card (NPC), which has actually been around for two years now. Through the company, consumers can belong to a discount program and pay for their products with just their driver’s license. For example, a gas station may offer 10 cents off per gallon to people that join their program. Rather than issue a membership card, the consumer can set it up so that the magnetic strip on their driver’s license is linked to their bank account. Then, when making purchases, they automatically receive their discount and the money is withdrawn from their bank accounts (after they have entered a personal identification number first, of course).

Obviously, if you were looking to buy your gasoline on credit, this program wouldn’t work for you. If you plan on paying for your gas outright, on the other hand, this type of program just might be the sort of thing you are looking for. In addition, the driver’s license swipe is attractive to retailers because it still provides their customers with the convenience of plastic but they do not have to pay the interchange fees associated with accepting credit card payments.

Getting rid of interchange fees is particularly important to gas stations, which are suffering greatly from these costs. The rising cost of gas has also increased the amount they pay in interchange fees. These costs have become so high that the National Association of Convenience Stores (NACS) reported that it is the second largest expense in the industry and it actually exceeded the overall profit of the industry last year for the first time ever.

The new driver’s license technology was introduced to a few gas stations in Texas earlier this year but is already slated to be added to other convenience store chains next month. It is expected to spread to other states soon, though only 24 states currently have driver’s licenses that contain the magnetic strip. Therefore, convenience stores and NPC will have some work cut out ahead of them in getting all of the states to be on board with this new method of payment.

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Tagged as: debit cards, Security & Technology