Consumer loyalty reward programs are growing, but those loyalty cards may be on their way out as Chockstone offers new "SingleSwipe" technology.
With interest in consumer loyalty reward programs growing rapidly, Chockstone Inc. has introduced technology to administer the programs through regular credit and debit cards, allowing consumers to get rid of all those cards devoted exclusively to individual companies. The new service is called "SingleSwipe."
Some merchants fear the loss of their name on the loyalty cards will diminish their branding efforts. However, others think that loss will be more than offset by the increased convenience and savings of the new system.
Chockstone is a Portland, Oregon firm specializing in loyalty marketing and technology. It says SingleSwipe will track customer "preferences and purchase history and immediately provide savings and promotional offers that are most relevant to each individual customer."
Chockstone CEO Jeff Lipp added that the system will accelerate the payment process and eliminate "the hassle factor for consumer participation in a rewards program." It will also decrease the overall cost of administering such programs, he said.
The company said SingleSwipe can be used with either VISA, MasterCard, Discover or American Express credit cards.
It will require cardholders to register their credit or debit cards and use those cards for "both payment and loyalty transactions," a requirement that might raise consumer concerns about privacy and the protection of their credit card information.
To head off those concerns Chockstone said that it "maintains and processes all data throughout its network and platform in compliance with the Payment Card Industry (PCI) regulations."
Chockstone said in April 2008 that "more than 46,000 merchant locations" use its services to conduct their loyalty programs. Those locations include Subway, Tully’s Coffee and Plaid Pantry.
