Accepting Gift and Loyalty Cards
Gift cards are one of the hottest, year-round commodities in business today, and loyalty cards have gained steadily in popularity with consumers, making both programs a must-have for your business. TransFirst® can get you started with our loyalty and gift card processing programs.
Gift and loyalty cards are reusable, stored-value cards that offer merchants an electronic alternative to paper certificates. The cards are the same size and material as standard credit cards and feature a magnetic stripe that contains card information.
A customer purchases a gift card loaded with a specific amount of value and then gives it to someone who can use it to make purchases at your business. Some shoppers keep the card as a convenient way to pay for future purchases.
Gift cards aren’t just for holiday giving anymore. Birthdays, graduations, weddings, special celebrations like Mother’s Day and Father’s Day and other milestones are all special occasions for giving gift cards.
This year-round gift card phenomenon is a ready-made market for merchants and businesses.
Recent statistics reveal that:
- Prepaid cards, which encompass gift and loyalty cards, are the fastest-growing segment of the financial services market.
- Gift card displays are the most profitable square foot of selling space at many retail sites.
- Purchases made with a gift card tend to be between 20 and 50 percent higher than the average purchase price.
- Over half of all shoppers spend more than the initial value of the card. The average “uplift” is 133 percent of the stored value.
- Forty percent of gift card recipients do not use the full amount on their card; in fact, between 2005 and 2011, $41 billion in gift cards went unused. This “breakage” is pure profit for the issuer.
Loyalty cards — also referred to as rewards cards, discount cards or club cards — typically feature a barcode or magnetic stripe for scanning. A merchant loads a loyalty card with a specific value and gives it to a customer, providing them a strong incentive to continue frequenting the business to redeem rewards.
At TransFirst, we believe that offering both gift card and loyalty card programs helps maximize your opportunities to increase revenue while helping you retain valued customers and attract new ones. Through our alliance with Valutec®, a leading provider of gift and loyalty card services, merchants can set up programs that fit their businesses and their budgets.
Choose from generic, pre-designed cards customized with your business name, or create your own cards and displays with your unique branding, logos and more. Depending on the option you choose, you can be selling or distributing gift and loyalty cards in as little as three business days after you place your order.
Consider the following benefits of gift and loyalty cards for your business:
- Potential for increased sales and revenue from new and existing customers.
- Custom-designed cards become part your overall marketing program to enhance your business’s credibility and visibility.
- Satisfied customers may purchase and distribute more gift cards, driving additional new customers to your business.
- Gift card recipients may reload card for future purchases at your business.
- Loyalty card recipients are likely to shop more often to earn more rewards.
- Additional revenue possible from gift card balances that are never redeemed.
The gift and loyalty card programs offered through TransFirst allow you 24/7 customer support from Valutec to resolve any questions or issues you may have. User activation requirements and card security features minimize the risk of theft or fraudulent purchases.
Whether you’re ready to purchase 100 cards or thousands, TransFirst can get you started in gift and loyalty card processing. Let one of our representatives facilitate your move today!