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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 strip 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
Specific Reward Value to our 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 is 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 activations, 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
request 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, e-mail or fax. In addition, a variety
of program management reports are available 24/7
via the Valuetec web site. You can generate Transaction
Detail reports that list every transaction for
specific 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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