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.
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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.
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