Nordstrom MOD™ will offer Nordstrom (NYSE: JWN) customers an exclusive debit card to be used at any of Nordstrom's 154 fashion retail stores and specialty boutiques. This debit card is different from the prepaid cards being widely popularized by consumers, including those with poor credit or bank account histories. To obtain the Nordstrom debit card, customers will supply their checking account routing number so that purchases can be deducted directly from the customer's personal bank account. This reduces transaction costs for Nordstrom. Customers using the new Nordstrom MOD™ debit card will benefit from the Nordstrom Rewards™ program, previously unique to Nordstrom's retail card and VISA® card holders.

While this is considered a first in the fashion industry, retailers such as Starbucks also will use the Automated Clearing House (ACH) network to offer a store-valued card tied to store rewards. Even NASCAR is now offering a prepaid card as the first reloadable sports-affinity debit card, giving racing fans services and benefits with NASCAR.

Federal Reserve Governor Mark Olson said debit cards that consumers use for everyday purchases are the fastest growing segment of the U.S. retail payments system. "Market needs will ultimately shape the U.S. payments system and its directions," he noted in remarks delivered to a retail banking conference in Brussels.