Faces with png textures with alpha channel are not rendered correctly

For some reason in 3d view they are showing correctly as transparent, but when I try to render, the transparent parts are rendered white.

As far as I see, I’ve set all the needed settings in both material and texture settings, as well as turning on shading in Render->Shading->Alpha and setting Render->Output->RGBA. I’ve also checked Material->Transparency, Texture->Image Sampling->Alpha->Use

When I tried to check Face Textures Alphas in Material->Options it got even weirder.

What am I missing?

If you texture blending mode is set to ‘mix’, then you have set the alpha transparency of your material to 0.
Else it will overwrite the alpha part of your texture.