News

7-Eleven chooses partner for stored value cards

February 2, 2003

DALLAS -- 7-Eleven, Inc. (NYSE: SE) and Alliance Data Systems Corp. (NYSE: ADS), a provider of transaction, marketing and credit services, are teaming to offer two new stored-value programs, one of which is geared toward users of 7-Eleven's Vcom kiosks.

Under the terms of a six-year agreement, Alliance Data will provide stored value and loyalty marketing services for 7-Eleven stores' Vcom kiosks.

Using Alliance Data's Dynamic Value program, which combines stored value and loyalty marketing functionality, 7-Eleven stores' Vcom kiosks will begin offering this spring the ability for consumers to store money on the Vcom card after either cashing checks at the kiosks or loading cash onto the card.

According to a news release, the two companies plan to develop real-time, point-based rewards and other customized loyalty programs for Vcom members.

Customers also will be able to use their Vcom stored value cards for most purchases within the store and at the gasoline pump.

In a separate three-year agreement, Alliance Data will provide stored-value services for the new 7-Eleven Convenience Card, which will be sold beginning this month at participating 7-Eleven stores around the country. The Convenience Card is re-loadable and includes a corresponding key-chain card for greater convenience, according to the release.

"Our partnership with Alliance Data Systems will help enable us to enhance the quality of service that we provide to each of our customers," said Jim Keyes, president and chief executive of 7-Eleven, in the release. "By combining Alliance Data's expertise in transaction processing and in loyalty marketing, 7-Eleven can reward our customers for their purchases in real time at the point of sale."

Alliance Data is the seventh Vcom service-provider partnership 7-Eleven has announced to date, according to the release. Other partners include Certegy Check Services for check cashing and Western Union for money transfers, money orders and bill payment.

Currently, customers can conduct ATM transactions, purchase money orders and money transfers and cash checks at the Vcom kiosks, which are manufactured by NCR. Soon they will be able to pay certain bills online, according to the release.

7-Eleven is on target to roll out kiosks in 1,000 of its stores by the end of May and, based upon the kiosks' performance, the company could deploy an additional 2,500 kiosks starting in late 2003.