StORES Magazine - August 2007 - (Page 67)

a day or more. With nearly 350 stores, even one day’s interest on the funds can add up. Once the switch was up and running, Sheetz wanted to consider what else it could add to stand out in the retail business. Sheetz has developed its own proprietary gift card and loyalty program that offers unique functionality. For example, Tickerhoof says, Sheetz’s rewards system allows the chain to customize the points and rewards based on specific purchases. “If they had a promotion on Coke, the system might award double points if Coke was purchased, but only offer the regular points if another brand All about speed Among the next projects on the agenda is merging check authorization and check processing into the card payment switch. Currently, Sheetz uses a stand-alone check reader to get bank account numbers off of the checks, and authorizes the transaction separately: Merging this operation onto the same POS terminal and system as the payment and gift cards would make it much easier for the checkout clerks, Steckroth says. “We can authorize the checks a lot faster if the systems are integrated and, in our business, it’s all about speed.” By performing its own processing operations, Sheetz has been able to get same-day funds rather than have to wait a day or more of soda was purchased,” she says. Additionally, customers can be told at the register if they are eligible for specific rewards. That’s because information about current and past purchases pops up on the POS system when the customer is still at checkout. “With our own switch, if we want to do something different, we can,” Steckroth says. “We’re not limited to doing what a hundred other merchants are doing.” Sheetz has even piloted a contactless gift card, but put that program on hold due to the cost of the microprocessor chips imbedded in the cards. “We’re waiting until it becomes more affordable,” Steckroth says. WWW.STORES.ORG Checks are not a large portion of the fuel payments mix, but as the chain expands its food options through its convenience stores, checks will play a larger role. And the movement toward integrating check authorization with card payments is becoming more common with retailers that sell food. “We’re seeing a lot of this transition with grocery stores and other retailers that sell food because they still get so many checks,” Tickerhoof says. Another unique feature at Sheetz is a payment card specifically for customers who want to pay with cash. Instead of having to pay before they pump, customers slide their card in the pump terminal, begin fueling then go inside to pay. Trust regular customers By registering customers for the card, Sheetz knows that these are the chain’s regular customers and can be trusted to pay for their gas. And, “if someone does drive away without paying, the store knows who it is,” Tickerhoof says. Sheetz looked at three different payment options, but chose ACI because of the vendor’s ability to develop special application software. “Numerous times we’ve gone to them with an idea and they’ve been able to execute that idea into a reliable product within a short window,” Steckroth says. That is especially important to Sheetz, which does not have a large IT staff and has to rely on its software vendors for application development. “Not only have we added a number of different payment options,” Steckroth says, “but it seems like every few months there are payment association changes that we have to keep up with. Some are easy and some are onerous to handle, but they are able to keep up with the changes and we appreciate that.” StORES Lauri Giesen is a Libertyville, Ill.based business writer with extensive experience in covering payment and finance issues. STORES / AUGUST 2007 67 http://WWW.STORES.ORG

Table of Contents Feed for the Digital Edition of StORES Magazine - August 2007

Contents Executive Editor's Page President's Page Upfront NRF News Retail People Concept2Watch Supermarkets Cover Story Online Marketing In-Store Marketing RFID Data Management Payment Systems Software Loss Prevention E-Commerce Risk Management Communications Loyalty Marketing Human Resources Mobile Commerce Loeb Retail Letter Arts Update Point of View Advertising Index Retail Industry Calendar

StORES Magazine - August 2007

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