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Frequently
Asked QUESTIONS
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| Q |
Why electronic gift
cards versus paper certificates? |
| A |
The
electronic gift card concept is quickly
becoming the medium of choice for retailers
across the country. Plastic has several
advantages such as: No Cash Back (value
remaining after partial redemption stays on
the card, ensuring additional opportunities to
solidify the customer relationship or retain
funds) and real time Data Capture (virtually
eliminates both the losses associated with
paper gift certificates and costly tracking
and accounting). |
| Q |
What are the benefits of
this program to a merchant? |
| A |
Electronic
gift/stored value cards are convenient
(carried in wallet with other plastics),
secure (cannot be photocopied) and as a
branded, “billboard in a wallet”, they
create a shopping destination for the
cardholder. Gift Cards, Loyalty Cards, Prepaid
Cards, and Promotional cards all create a
physical connection with customers that
insulates them from competing offers and
results in increased purchase quantity and
frequency. |
| Q |
What is the difference
between a Gift Card and a Stored Value Card? |
| A |
There is
no difference in the functionality of the
cards, both are pre-paid value cards. With the
gift card, the customer is excited about a
slick, state of the art gift-giving solution
that allows the receiver to actually choose
the gift. The merchant benefits from replacing
an obsolete paper gift certificate program
with today’s technology, electronic
processing. With the stored value card, an
emphasis is placed on enhancing the individual
customer relationship through the use of
incentives and an optional associated rewards
program. |
| Q |
How does the Gift/ Stored
Value card work? |
| A |
A
customer enters the merchant’s business and
asks to purchase a gift / stored value card.
The merchant takes a card from inventory and
activates it for the dollar amount desired by
swiping the card through Valutec’s POS
terminal. The card is now ready to be used at
any participating store location. |
| Q |
Will I be able to utilize
my existing equipment? |
| A |
In many
cases, yes. Valutec applications run on
several leading credit card terminals such as
the VeriFone Tranz 330, 380, and 460, Omni
3300 and 3750, Hypercom T7 series, Ingenico
Elite 510, Lipman Nurit 2085, 2090, 3000, 3010
and 3020, and the Thales Talento T1. If a
smaller “footprint” is desired, a VeriFone
Tranz 380x2, capable of housing two separate
applications (i.e. credit card and gift card)
is a viable solution. The use of a printer is
essential for production of receipts and
reports. |
| Q |
What type of reporting will
I receive with this program? |
| A |
Merchants
can generate a wide variety of program
activity reports using Valutec’s reporting
interface on the web. Reports can also be
generated by the merchant’s card terminal.
The Daily Batch report produces a
chronological list of all transactions, a
total count and total dollar amounts by
transaction type occurring since the terminal
was last cleared. Valutec generates a monthly
Corporate Summary statement which reports all
transactions captured on Valutec’s database
during that time period, as well as total fees
billed. This report aggregates transactions at
the corporate level and by location. |
| Q |
When should cards be
reordered? |
| A |
Merchants
should always be aware of their card supply so
as not to deplete their inventory during their
peak season. Keep in mind that card reorders
require 15 business days for card production
plus shipping time. If cards have been
pre-produced and stored, the only time
involved will be the shipping of the cards. |
| Q |
How soon can the card be
redeemed at a participating store location
after value has been added to the card? |
| A |
The
gift/stored value card may be used immediately
after activation. Gift / Stored Value card
transactions are processed in real time. |
| Q |
How do I get the customer
with an existing card to add more value? |
| A |
The
“add-value” function is an effective
revenue generator for many merchants. By using
“reload” incentives, customers can be
motivated to add value to their card for
future use. For example, you can offer to
provide $55 worth of “actual value” when a
customer prepays for $50 of value on their
card. Discounts or additional services can
also be effective incentives. The
“add-value” feature provides a powerful
tool for creating marketing offers that
enhance customer relationships, increase
purchase frequency, and build brand awareness. |
| Q |
How can I motivate my
employees to actively sell and promote our
cards? |
| A |
Incentives,
incentives, incentives—a concept that works
with customers and employees alike! A reward
program encouraging friendly competition
between employees will build a strong,
goal-oriented team while promoting your new
and dynamic gift card program. |
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