Gift cards are a convenient way to pay for goods and services. However, there are some important things to know before you start using them.
During checkout, a customer presents their gift card. The merchant selects the program on their terminal or POS system, and inputs a 문화상품권현금화 dollar amount to redeem off of the card. A receipt is printed and the card is handed back to the customer.
Electronic Gift Cards (EGCs)
An egift card is a virtual form of the traditional gift card that comes preloaded with money. It can be purchased in-store or online and can be used for a variety of purposes such as to thank customers, boost survey response rates, and more.
Unlike physical cards, which require printing and shipping, egift cards can be delivered electronically through email or SMS. The recipient will then receive a code or number that they can redeem for the value of the card.
The process for redeeming an egift card can vary from one business to the next, but generally speaking you will need to bring the paper copy or digital image of the gift card with you when you are ready to checkout. Then, at the register, present it to the server along with your credit card or cash. They can then run it through the register and complete your sale. The customer’s egift card balance will then appear on their receipt.
Closed Loop
Closed loop cards are prepaid gift cards that can only be used at a specific retailer or brand. These are a great way for businesses to build loyalty and increase sales. They can also be an easy way for customers to budget their spending.
For example, many convenience stores sell closed-loop gift cards for their specific brands. These cards can only be redeemed at those locations, which helps the business retain customer spending and eliminates fraud risks.
These cards can be customized to include design and branding elements that are unique to the business. These can be in the form of logos, taglines, and product images. This can help the card stand out in a crowded market. In addition, closed-loop systems can reduce costs by eliminating the need for payment network services like Visa and MasterCard. These savings are passed on to the customers as well as the card holder. Unclaimed balances are also kept by the merchant instead of the credit card payment networks, which is an added benefit.
Open Loop
Open-loop gift cards operate within a credit card network, like Visa or MasterCard, and can be used at any merchant that accepts the associated payment processor. They can also be used to make cash withdrawals and balance inquiries at ATMs.
They increase financial inclusivity, making it easier for people who may be unbanked to access traditional banking services. They can also enhance financial management, enabling consumers to monitor and manage spending habits. In addition, they can be a great way to encourage employee and customer loyalty, as they can be redeemed for a wide variety of goods and services.
Closed-loop from vendor programs offer a more streamlined solution for businesses that do not have the resources or time to develop an in-house gift card system. However, these programs are limited in that they cannot be used at other merchants. In addition, they often come with extra costs, such as transaction and activation fees. While these fees are not typically much, they can still be a drawback for some shoppers.
E-Gift Cards
A well-designed gift card system is an opportunity to increase revenue and customer engagement. Implementing a closed-loop system provides merchants with the ability to customize gift cards, add e-gift card options, and tie them in with loyalty programs.
To use an e-gift card, the purchaser enters the recipient’s name and email address on the product page. Then they select how the e-gift card should be delivered—immediately, or on a future date.
A reversal is a transaction on the payment platform that undoes a previous one. The only types of transactions that can be reversed are GIFTCARD_ADD_VALUE and GIFTCARD_REDEEM. When these transactions are reversed, the original amount should be deducted from the balance on the card. It can take hours or even days for a hold to be removed from a card, depending on the processing system. During that time, it may not be possible to add funds to the card or redeem the code. This is a common issue that sellers must understand and account for.