May 15, 2007

NEWS: Paying With Drivers Licenses?

Some Texans are paying for transactions not with a credit or debit card, but with their drivers licenses! If they pump gas at Murphy Oil Gasoline Stations, they might be offered this option, which is said to be poised to replace traditional plastic technology to become a leading payment choice. Ohio is said to be the next state ready to make the jump, and more are expected to follow, because it is supposed to be much less expensive for stations to process the drivers license payments than traditional plastic.

The format is the invention of a company called National Payment Card. NPC eliminated the middleman that Visa, MasterCard, Discover, or AmEx represent by directly transmitting information to Automated Clearinghouse to transfer funds. Per NPC’s website, the consumer elects to enroll in the program, either online, by phone, or via snail mail. At the time of enrollment, the consumer inputs checking account information and their PIN number of choice. Then, the consumer will be able to use the card in question as a payment choice, with entering their PIN. NPC validates the transaction, then performs an electronic funds transfer to collect the funds.

Some participating stations are offering up to 3% discounts as an incentive to start using the program. Additionally, consumers worried about fraud can enjoy the benefits, as each and every transaction requires the use of a PIN.


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