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 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 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 clerks 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. |
