| From CSP Tempo Terminates QuikTrip Card Services Ends branded debit card relationship with Tulsa-based retailer By Greg Lindenberg |
 SAN MATEO, Calif. -- Tempo Payments Inc. will cease operations on July 15, abruptly ending the decoupled debit network services it offered to QuikTrip Corp., according to a report by The Wichita Eagle.The Tempo web-based program enabled merchants to offer personalized debit cards and offered a web portal for consumers to apply for and activate cards, along with detailed purchase and rewards records. Mike Thornbrugh, spokesperson for Tulsa, Okla.-based QuikTrip, told CSP Daily News, "We were notified by Tempo that they were going to cease operations July 15. Tempo has sent out a letter to all those that had cards [telling them that all rewards] would be honored." The failure, though, does not necessarily mark the end of QuikTrip's move into branded debit cards. "The program worked for us," Thornbrugh told the newspaper. "We'll regroup and try to figure out another method. ... Something that's long-lasting, verifiable and saves our consumer some money is something we're all for." He would not commit absolutely to replacing the card with a similar product. "We'll just take our time and look for another potential opportunity," he told CSP Daily News. "We're not going to latch onto the first that's out there; like we always do, we'll do our due diligence and see what makes sense. We'll go back to the drawing board and look at all the options out there--that may be one option." QuikTrip joined the Tempo Payment Network in 2007. Starting in the second quarter of 2007, it began a phased rollout of the card. In August 2010, QuikTrip is expanding its QuikTrip Rewards Debit Card program, using Tempo's affinity debit-card platform and re-issuing the cards with Tempo partner First Bank & Trust of Brookings, S.D., part of Fishback Financial Corp. Tempo-powered affinity debit cards linked to consumers' existing checking accounts and could be used everywhere Discover cards are accepted. The QuikTrip Rewards Debit Card provided consumers with a fuel purchase discount of five cents per gallon at QuikTrip for the first 90 days after activation and two cents per gallon thereafter. The card also provided quarterly cash-back rewards for purchases made at merchant locations outside of QuikTrip. According to press materials, Tempo enables organizations to offer affinity and co-branded debit cards to their customers, providing retailers a low-cost alternative to Visa and MasterCard. The open-loop cards are rewards based, partner branded and linked to the consumer's existing checking account. The partners benefit by generating new revenue and building loyalty through the delivery of enhanced cardholder value. The company operates the Tempo Payment Network, a PIN-based payment network for retailer-issued and branded debit cards. Founded in 2000 with a commitment to lowering interchange fees for card transactions and generating revenue for card-issuing retailers, the company is privately held and headquartered in San Mateo, Calif. Other industry clients have included Sheetz and ARCO. Messages left with Tempo seeking comment were not returned by press time. QuikTrip is a privately held corporation based in Tulsa, Okla. The company operates approximately 575 c-stores in nine states. |
