How Stored Value Works
Reload Incentives
The cardholder can purchase additional value or “reload”
the card for any amount—by phone. The merchant can offer
an incentive to customers to encourage card reloading.
For example: increase the customer’s stored-value amount
by 20% (i.e. a $50 reload is recorded as $60 in stored
value for the cardholder).
Sales
Merchants use in-store displays to merchandise Gift Cards much like they would any small impulse-buy
product—by the register with counter signs and colorful card hangers. A customer purchases a
Gift Card with cash, check or credit card for any dollar amount desired. The amount purchased is
recorded as “stored value” or “prepaid” in the host database.
Data Processing
The stored value card system operates in real time as a closed loop debit network. Transactions, such
as card activation, sales, voids and balance inquiries from the point of sale, are transmitted to the
Data Center. The transaction request is fulfilled or authorized, data is captured in the merchant /
client database and an approval or requested information is transmitted via the POS terminal. The POS
printer produces a paper receipt of each transaction—including the card balance—for the
merchant and the customer.
Redemptions
The Cardholder presents the gift card for full or partial payment of a purchase. The merchant swipes the
card through their POS terminal for authorization and transmission of transaction data on the host platform.
The card’s magnetic stripe identifies the card number and merchant location for which the card has
been issued.
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