Debit Card Program Encourages Local Shopping

The town of Brookline, Massachusetts, has launched a debit card program that aims to encourage residents to shop locally. The PXT Payments smart debit card can be used at a variety of participating retailers and restaurants in Brookline, and – after new parking meters are installed early next year – can be used to pay for parking throughout town.

The program, which was introduced to consumers at a talk presented by the Brookline merchants association, is modeled after a similar program that has had success in New Haven, Connecticut.

Dana Brigham, co-owner of Brookline Booksmith, a participating merchant, said she believes the cards have the potential to increase traffic and sales. Her hope is that consumers who stop at the bookstore to purchase the PXT card will stick around to do some shopping.

“It’s a consumer-friendly, town-oriented program,” she said. “And we always try to participate in such things.

The chip-based debit cards, available in a range of increments between $10 and $500, can be purchased for $2 at participating stores or online, and they can be reloaded over and over again at no additional charge. Because consumers don’t need to register or provide personal information to purchase the debit card, there’s no danger of identity theft.

Merchants earn a commission of two percent of the value of the funds put on the cards when they are bought or reloaded. Transaction fees don’t kick in until after the first six months, and then merchants will be charged two percent of each sale.

Noting the town of Brookline’s similarity to New Haven (slightly upscale yet demographically diverse), Brigham said she thought the program would work best in small to medium urban towns with healthy commercial areas.

The program is still in its early stages and Brookline Booksmith has sold just a few cards to date, but Brigham said she has faith the program will grow with time.