Rates Vary By Industry Type

RETAIL

face to face vendors

MOTO

mail order or telephone order

ECOMMERCE

all internet based transactions

RESTAURANT

Including quick purchase, small ticket

SUPER MARKET

grocery stores with over 20% perishable

FUEL

gas, propane, incl. pay at pump

HOTEL

motel, lodging with deposit reservations

AUTO RENTAL

advanced deposit 
on reservations

EMERGING MARKETS

education, charity, government, utilities

BEWARE! Custom Gift & Loyalty Cards may be a great addition for a Merchant to increase sales. However, many Processors use Gift Cards to enslave Merchants so they cannot ever leave!

Custom Gift, Loyalty Cards

Tricks of the Trade

Learn how Gift Cards can serve or imprison you.

Two Types of Custom Cards:

• Prepaid Gift Cards - some are reusable
• Loyalty Cards - track purchases to reward big spenders & frequent customers

Compatibility is everything

Many Processors use Gift Cards formats which are proprietary. That is, they are NOT compatible with any other card reader terminal!

In that case, once you sell a single Gift Card, YOU ARE A HOSTAGE to your Processor!

If and when you find a greater Processor OR your Processor makes a huge mistake OR fails to provide customer service OR has a security breach, OR you just find a great deal elsewhere, you will want to change... but you cannot!

Your Gift Cards won’t be compatible with you new Processor so your customers won’t be able to redeem their Gift Cards and you won’t be able to read them to ascertain their value. You’re a prisoner!

What You Can Do...

Here are some options to protect yourself:

• Demand that your Processor use a universally compatible Gift Card format.
• Shop around for your own Gift Cards which ensure compatibility.
• Use Paper Gift Cards
• Sign with an ethical Processor that doesn’t use proprietary Gift Cards.

What you can do if it’s too late

If You’re Already Stuck With Proprietary Gift Cards, you can:

• Negotiate with your current Processor to pay a cheaper rate to retain processing services only for the Gift Cards, while you sign up elsewhere.
• Keep your existing Processor and Card Reader Terminal AND get a new Processor, waiting until your gift cards either expire or get used up.
• Put signage up encouraging gift card holders to exchange their gift cards.
• Find out if you can check card balances by telephone or online when a customers return to redeem their cards.
• Send a sample gift card with a dollar on it to your new prospective Processor and see if they can read the format. If they can, you’re good!
• Find out which company actually makes your original gift cards and ask if that company can offer a solution.

Custom Gift Cards Proven Record

Nevertheless, there are great advantages. Just beware of compatibility!

• Breakage: 22% of Gift Cards Never Get Used
• Pre-Holiday & Post-Holiday Sales Boost of 12%
• Prepaid Sales
• In retail environments some report as much as 18% boost in sales
• Over HALF of all Gift Cards go to people who have never been to your business!
• Every time someone sees that card in their wallet they think of your business.
• 11% Sales Increase First 6 Months
• Average Customer Adds Over 75% of the card value to purchase a more expensive item.
• Increased customer frequency