Gift Card Sales
Merchants
use in-store displays to merchandise Gift Cards much like they would any
small impulse-buy product—by the register with counter signs and colorful
card hangers. A customer purchases a Gift Card with cash, check or credit
card for any dollar amount desired. The amount purchased is recorded as
“stored value” or “prepaid” in the host database.
Redemptions
The Cardholder presents
the gift card for full or partial payment of a purchase. The merchant swipes
the card through their POS terminal for authorization and transmission of
transaction data on the host platform. The card’s magnetic stripe identifies
the card number and merchant location for which the card has been issued.
Loyalty Cards
Several points-based loyalty
card programs can be implemented using stored value technology. One of the
simplest and most powerful applications is what we call Auto Rewards. Under
this program, the system automatically adds a specified Reward Value to your
customer's card when that customer has accumulated a designated number of
points.
.... For example: when 50 points are accumulated, $10 of spendable value is
loaded on the card and the 50 points are removed. This cycle simply repeats,
continually motivating the customer to return to earn more points and more
reward dollars. It's also easy for the customer to understand and for sales
associates to administer.
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Reload Incentives
The cardholder can purchase additional value
or “reload” the card for any amount—by phone. The merchant can offer an
incentive to customers to encourage card reloading. For example: increase
the customer’s stored-value amount by 20% (i.e., a $50 reload is recorded as
$60 in stored value for the cardholder).
Data Processing
The stored value card system
operates in real time as a closed loop debit network. Transactions, such as
card activation, sales, voids and balance inquiries from the point of sale,
are transmitted to the Data Center. The transaction request is fulfilled or
authorized, data is captured in the merchant / client database and an
approval or requested information is transmitted via the POS terminal. The
POS printer produces a paper receipt of each transaction — including the
card balance — for the merchant and the customer.
Reporting
A monthly summary report of all
transaction activity is provided via mail, email or fax. In addition, a
variety of program management reports are available 24/7 via the Valutec®
website. You can generate Transaction Detail reports that list every
transaction for specified periods of time, or a Pooling report that
reconciles the imbalances created when cards are purchased at one merchant
location and redeemed at another in a multi-store, multi-owner environment
such as a franchise company.
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