Agreements with Banc One, processor add punch to a point of sale system.

A Florida company that is selling an innovative point of sale system for supermarkets announced two agreements last week that pave the way for acceptance of credit and debit cards at its terminals.

The agreements - with Buypass Corp. and Bank One Columbus - allow Advanced Promotion Technologies Inc. to begin delivering on its promise to provide financial services through a new generation of its Vision Value Network terminals.

In a related, concurrent development, Bank One Columbus made the first direct-mail solicitation for its Vision Value Club credit card. It is the Banc One Corp. unit's first cobranding effort for the supermarket industry, and the first mass-marketed card in the United States to be equipped with a computer chip, thus qualifying as a "smart card."

Frequent-Shopper System

The Vision Value Network is primarily a frequent-shopper system, Tracking the buying habits of customers and tailoring promotions accordingly.

Since the system is card-activated and designed to reward customer loyalty, it was natural for Advanced Promotion Technologies to program financial and payment services into the system. The feature also supports food retailers' growing acceptance of card payments.

Certified by Processor

"We believe that supermarkets offering shopping conveniences to their customers, such as ready access to their credit and debit cards, frequent-shopper programs, in-store promotions, and other shopper communications, will have an edge in today's highly competitive push for customer loyalty," said H. Robert Wientzen, the president and chief executive officer of Advanced Promotion Technologies

The company said the system has been certified by Buypass Corp. of Atlanta, a major processor of electronic supermarket payments through its Manta division. Buypass is owned by Electronic Payment Services Inc., the joint electronic banking venture of Banc One, CoreStates Financial Corp., PNC Bank Corp., and Society Corp.

A store in the Vision Value Network can gain access through Buypass to any of 16 major debit card networks, including Interlink, Explore, Honor, Cactus, Pulse, Yankee 24, Payment Services' MAC system.

Buypass, which processed 33 million debit transactions at points of sale last year, also can act as a "gateway" into MasterCard, Visa, American Express, Diners Club, and Discover.

|A Communications Network'

Similarly, Bank One Columbus has provided its certification, but only for authorizing MasterCard, Visa, and Discover credit cards.

Each store will choose its payment processor. The certifications assure a certain level of service and quality.

"These agreements exemplify APT's goal of becoming a communications network with consumers," Mr. Wientzen said.

The Vision Value Network had previously been certified by Nabanco, the merchant processor owned by First Financial Management Corp. of Atlanta. But that arrangement applied only to the original Vision Value terminal, not a newer device that began rolling off assembly lines in May, according to Advanced Promotion Technologies spokeswoman Cathy Amann.

Moving into High Gear

The company, based in Pompano Beach, Fla., was founded in 1987 with equity participations from Procter & Gamble Co., Dun & Bradstreet Corp., and PNC Bank Corp., among others. It has installed the Vision Value system in 90 stores nationwide but is just moving into high gear with its new terminal.

Ms. Amann said the company has commitments from 800 stores to install the systems through the end of 1994, and its longer-term target is 1,000 installations a year. To manage the volume, Advanced Promotion Technologies contracted out the installation and maintenance to NCR Corp., effective last month.

Supermarket chains that have tested or signed onto the system include Super Valu, Kroger, Safeway, Vons, Dominick's, and Big Bear.

Multimedia Blitz

The Vision Value Network's centerpiece is a terminal in each checkout lane that includes a card reader, printer, video screen, and speaker for interactive, multimedia advertising.

Typically, a customer who shows a preference for a certain brand, or seems to be trying a new one, will be shown an advertisement and perhaps given a cents-off coupon usable on the spot or on the next store visit.

The program is thus designed to serve major consumer product companies like Procter & Gamble, which last week announced a renewal of its frequent-shopper tie-in through September 1994.

Forty P&G brands - including Tide, Crest, Pampers, Folgers, and Crisco - are promoted to Vision Value cardholders.

Tropicana Signs Up

Also last week, Tropicana Products signed a one-year agreement to promote its $600 million Pure Premium brand of refrigerated juices through the network.

Mr. Wientzen said his program's ability to attract prominent consumer goods marketers illustrates the appeal of being able "to measure shopper behavior in real time and immediately communicate with that shopper in the store."

Bank One Columbus' Vision Value Club MasterCard and Visa cards, under development since last year and separate from the payment-processing agreement, are seen as adding a loyalty-enhancing element to the customer-store relationship.

|Very Viable Population'

The first mail solicitations went out on Oct. 9 to existing Vision Value Club members around the country who met qualifying tests, said Lanny D. Byers, assistant vice president of bank card marketing at Bank One Columbus.

"Wee see this as a very viable population," Mr. Byers said of the supermarket shoppers targeted for the initial promotion.

The affinity credit card "allows shoppers to electronically accumulate frequent-shopper points at participating Vision Value Network stores, plus earn one point for every $1 charged wherever Visa and MasterCard are accepted," Mr. Byers said.

Another First for Banc One

The smart card is another in the long line of firsts for Banc One Corp., and in keeping with its reputation for technological and marketing experimentation.

"We are continually searching for ways to enhance the value of Bank One credit cards," Mark K. Tonnesen, senior vice president of the Columbus bank's card division, said when it announced the alliance with Advanced Promotion Technologies in June 1992.

He said he found the combination of advanced card technology and electronic marketing "intriguing."

For reprint and licensing requests for this article, click here.
MORE FROM AMERICAN BANKER