SOURCE: Debitman Card, Inc.

January 30, 2006 08:00 ET

Binghamton Supermarket Chain Issues Debit Cards

Binghamton Giant Markets Leverages Debitman Card's Low-Cost Debit Transactions With Giant-Branded PIN-Secured Debit Cards

SAN DIEGO, CA -- (MARKET WIRE) -- January 30, 2006 -- Marketechnics Booth #240 -- Binghamton Giant Markets, Inc. will issue its own branded Giant EXTRA Plus debit cards to shoppers in the Binghamton, NY, area, utilizing "The Retailer's Network" powered by Debitman Card, Inc., the two companies announced today.

Binghamton Giant Markets will issue Giant EXTRA Plus Expanded Services Cards to as many as 50,000 consumers in the Greater Binghamton area. Giant Market cardholders will be able to use their cards are more than 200,000 locations nationwide that are part of the Debitman Retailer's Network, including Wal-Mart, Sam's Clubs, CVS, Duane Reade, and Walgreen's.

Debitman is the only provider of a shared network, retailer-issued PIN debit system that not only carries low transaction fees, but also provides retailers with revenue each time one of their cards is used for purchases. The Giant EXTRA Plus debit card will be processed through the Debitman network leveraging the Federal Reserve's Automated Clearing House (ACH), accessed with a PIN-secured card. Binghamton Giant has a history of industry innovation and was one of the early adopters of ACH payment with a successful implementation of PIN-based loyalty and check card programs dating back to 1989. Binghamton Giant will integrate its check acceptance program with the new Giant EXTRA Plus debit card program.

"Debitman makes it more cost-effective for Giant to accept debit, which is now the most popular form of payment in our stores," said Jim Whittaker, Binghamton Giant's director of Management Support Services. "Other local merchants in our area are very interested in accepting our Giant Debitman cards and enjoying the lower processing costs."

The high cost of credit card acceptance is driving many supermarkets to favor debit card purchases. A supermarket typically pays $1.48 to banks for a $100 credit card purchase and 17 cents to 50 cents plus bank fees for debit card purchases. Debitman charges only 15 cents per transaction, and card-issuing supermarkets can earn 6 cents or more on each transaction made with a card they issued -- so in-store purchases would be a net cost of only 9 cents per transaction at most, and purchases made elsewhere would bring the supermarket 6 cents per transaction of new revenue.

"Supermarkets have introduced ACH debit cards in the past, but they could only be used at the issuing locations," said Debitman President R. Scott Hatfield. "Now those supermarkets can leverage 'The Retailer's Network' to convert their store-branded cards from a cost center to a profit center."

In 2004, according to The Nilson Report, the number of transactions made using debit cards exceeded that of credit cards for the first time, and by 2009 will account for 57.9% of all card-based purchase transactions.

About Debitman

Debitman® is the leading electronic payment network for retailer-issued debit cards. Founded in 2000, the company is privately held and headquartered in Chico, CA. For additional information, visit www.debitman.com.

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