Sheetz is not the only major retailer to opt for a radio frequency identification payment platform. Chain retailer CVS, which already had ExpressPay from American Express in 485 stores, announced last month that it would roll out that payment platform to all of its more than 5,300 stores nationwide by the middle of this year.

A Sheetz executive spelled out the convenience chain's reasons for adopting a smart card payment option. "We are confident that the convenience and security of Gilbarco Veeder-Root's contactless payment option will be well received among Sheetz' customers at the pump, and will contribute to the overall time-savings and pleasant shopping experience for our customers," said Louie Sheetz, executive vice president of marketing for the chain.

Because the contactless smart card payment system is compliant with global standard ISO 14443, and is backed by major credit card companies, transactions qualify as a card swipe and therefore get the best transaction rate, according to Gilbarco.

Sheetz' deployment also avoids other barriers of adopting an RFID payment, because no proprietary database/look-up table is required and the major credit card companies will bear the cost of issuing the RF-enabled cards and tokens, according to Gilbarco.

The rollout is also supported by point-of-sale systems and software provided by Radiant Systems of Alpharetta, Ga., and in-store readers provided by VivoTech of Santa Clara, Calif.

Transaction processing is provided by the WINPAY product from ACI. The combined system is designed to allow Sheetz customers to make purchases with a simple "tap" of an RF-equipped credit card.

The contactless smart card option provides protection from card skimming at the pump by supporting what is known as dynamic card verification code, or CVC, according to Gilbarco Veeder-Root. Dynamic CVC uses radio frequency to change the account number with every transaction. Any transaction involving a counterfeit "white card" is rejected by the host, which recognizes that the number has already been used.

ExpressPay by American Express also operates by radio frequency, and is designed to make everyday purchases quick and easy. Users hold ExpressPay next to a reader at checkout to make purchases. Payment is authorized in seconds, according to American Express, and no signature is required to complete a transaction. It is available as a fob that hangs on a key chain and can also be embedded in a traditional American Express Card. ExpressPay contains a set of fraud prevention features, including a unique digital signature that is validated for each transaction to help prevent counterfeiting. In addition, consumers are not liable for fraudulent charges.

American Express said last month that it was conducting ExpressPay pilots in Phoenix, New York and Singapore. The Phoenix pilot included participating locations at Carl's Jr., Fry's (Kroger) supermarket, Blimpie Subs & Salads, ChevronTexaco, Dairy Queen, Cold Stone Creamery, Ritz Camera and Schlotzsky's Deli.

Based on the pilot results, American Express said, it has concluded that ExpressPay provides significant value for consumers and merchants. Market research with pilot participants indicated that consumers view convenience and simplicity of use as two of the major benefits, according to American Express. Merchant benefits include reduced transaction time, according to American Express, which said its studies have shown the length of time for ExpressPay transactions is faster than both cash and traditional credit transactions. In addition, ExpressPay customers increased their average transaction size by 20 percent to 30 percent compared with their cash spending, according to the company.

ExpressPay adheres to ISO 14443, the interoperable standard that has been adopted by the major payment brands for conducting RF payments, otherwise known as contactless payments. A number of POS and reader manufacturers are integrating RF into their POS equipment, enabling them to read ExpressPay and other RF payment products, according to American Express.

Follow this link to PetroRetail.net

Follow this link to view the current issue of NPN