Seeking More Issuers, Debitman Finds Two Among the Supermarkets

Debitman Card Inc., which has been seeking issuers for its PIN debit processing network, announced two this week. Binghamton Giant Markets Inc. and HAC Inc., both regional supermarket chains, have agreed to issue cards on Debitman's network. HAC, which runs 67 stores in Oklahoma and Kansas, has begun issuing Debitman on its existing One Card Plus loyalty program at five stores in Oklahoma. Similarly, Binghamton Giant Markets will begin linking a branded card, Giant EXTRA Plus, to Debitman by early March from its 12 stores in the area around Binghamton, N.Y. The grocer expects to issue up to 50,000 cards. No card figure was released for HAC, 49 of whose stores operate under the Homeland Stores brand. Through links to merchant processors, Chico, Calif.-based Debitman has recruited 200,000 merchant locations to accept its debit cards, which are secured by PINs and whose transactions settle through the automated clearing house. The network scored a coup late last year by signing up Wal-Mart Stores Inc., including its Sam's Club chain, for acceptance. But Wal-Mart and most other retailers accepting Debitman have not yet agreed to issue the card, leaving the network with a handful of issuers, including New York pharmacy chain Duane Reade Inc. Debitman, which refuses to disclose card or transaction numbers, has been redoubling its efforts to convince merchants to issue as well as accept the card, concentrating in particular on supermarket chains with existing loyalty-card programs to which the Debitman capability could be added, underscoring the significance of this week's announcements. Debitman, which received $3.6 million in private-equity funding late last summer, has also revamped its marketing, introducing a new, streamlined logo that does away with the caped superman-like character the network had used since its start. Debitman markets itself to merchants as a secure, less expensive alternative to the bank card systems, charging 15 cents per transaction, including a 5-cent switch fee and a dime in interchange. It pays back issuing merchants anywhere from 6 to 9 cents per transaction in interchange, depending on volume.