Abstract: A method and system for executing electronic funds transactions using a merchant-issued payment (MIP) card in a merchant-centric system having benefits which include reduced fees to acquiring merchants and optionally remitting a portion of the collected fees, or other incentive, to issuing merchants. The system also preferably provides information sharing on consumer transactions with merchants to facilitate consumer based incentive programs and the like. The system operates over conventional card processing infrastructure and utilizes the ACH network, or equivalent, to settle the transaction from a consumer checking account, or a merchant account in the case of a prepaid MIP card. Using the system, merchants may elect to qualify customers based on their own criterion. Embodiments are described for prepaid, fixed value, programmable, and refillable, forms of merchant-issued payment cards.