Rewarding loyal customers and creating new ones should be top priorities for all businesses, and gift card programs can help pave the way to meeting these goals by driving profits and improving cash flow. Prepaid cards are among the many card-based payment options 1st US Merchant Services® offers its customers.
Gift card programs offer many benefits. Besides building customer loyalty, they generate revenue, increase traffic and provide a low-cost marketing edge that allows small businesses to compete with larger retailers.
1st US Merchant Services’s gift card and loyalty programs replace the paper gift certificates and punch cards of the past with plastic cards that are specifically sought out and readily accepted by consumers, and offer an improved professional image and better tracking abilities for merchants. Cards are easily activated by merchants at their point-of-sale (POS) terminals, and they’re reloadable and reusable. Merchant reporting occurs automatically through the POS terminals with the added feature of real-time online transaction and terminal account reporting. Add loyalty to your gift card program to track the buying behavior of your customers, converting sales to points to incentivize repeat purchases in your retail locations.
1st US Merchant Services’s prepaid cards fall into three categories:
Closed loop prepaid cards enable virtually any merchant to expand their capabilities and grow their business. The closed loop gift card program offers pre-designed or custom cards, and targets virtually any retail or restaurant merchant. The loyalty card program features point-to-dollar conversion that works well for grocery stores, small retail chains, car washes and other retailers. Because most cardholders spend more than the value loaded on their card, these programs can have the potential to represent increased sales and profitability for participating merchants.
Closed loop prepaid with loyalty enables merchants to offer a point-based program to reward loyal customers. Customers accumulate points based on rules set by the merchant. These points are redeemed by the customer for tangible rewards, per the program the merchant has established. Most often the reward is a monetary addition to the gift card or free merchandise when point accumulations reach a predefined threshold.
Open loop prepaid cards are network branded (Visa® and MasterCard®), reloadable and can be used at multiple merchant locations. In addition to purchasing goods, consumers typically use these cards for withdrawing cash at ATMs and other bank-related activities. Popular with consumers, open loop prepaid cards complement the payment cards already in customers’ wallets or can be used as a readily-accessible and safe alternative to carrying cash.