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Fifth Third Bank, a unit of Cincinnati-based Fifth Third Bancorp, is issuing Revolution Money's RevolutionCard, a credit card that charges merchants 0.5% of the sale—about one-third the cost to accept a network-branded credit card, Revolution Money founder and CEO Jason Hogg tells CardLine sister publication ISO&Agent Weekly. "This is a very good cornerstone for our business model as we shift from building our network to building our consumer [adoption]," Hogg says. Consumers must enter a PIN to authorize a transaction with the card. Fifth Third Processing Solutions, now an independent company from the bank, was part of St. Petersburg, Fla.-based Revolution Money Inc.'s plan to expand its acceptance network when the processor began accepting RevolutionCard at 156,000 merchant locations (CardLine, 2/5/08). Currently, Hogg says RevolutionCard is accepted at approximately 1 million locations with plans to double that by the third quarter of 2010. Hogg says the cards, which carry the Revolution brand on the front and Fifth Third's mark and disclosure language on the back, will be issued based on Fifth Third's credit-issuing criteria with input from Revolution that will target specific markets, such as gasoline retailers and pharmacies. Additionally, consumers judged as prime and super-prime will be the first recipients, Hogg says. "We are not looking at the subprime market, but we are interested in [issuing cards to] the near-prime," likely beginning in 2010, Hogg says. Revolution Money has a number of co-branded programs in development, he adds. Hogg also says Revolution Money lined up $20 million in financing in the third quarter from investment firms Menlo Park, Calif.-based U.S. Venture Partners, New York-based RRE Ventures LLC, and an investment unit of Goldman Sachs Group Inc., a New York-based bank. Ted Leonsis, Revolution Money chairman, also participated, Hogg says. Jim Robinson III, general partner at RRE Ventures and former chairman and CEO of American Express Co., joined Revolution Money's board.
