Questions and Answers about Merchant Gift Card Programs
Why is every major national retailer from WalMart to Starbucks now offering merchant gift cards instead of gift certificates?
Because they are making huge profits from these programs!
Why should my business be offering Merchant Gift Cards?
Gift cards are everywhere and are out selling old fashioned gift certificates 20-1! Gift cards make money for your business in 3 basic ways :
1. Gift Card Programs generate new customers
2. Customers tend to spend more than the value on the gift cards.
3. Over 25% went unredeemed last year.
CAN YOU SAY FREE MONEY!?!
We are Focused on the Merchant’s Success. Our gift card and custoemr loyalty programs not only provide new customer traffic, but also can deliver substantial revenue to merchants who promote their programs.
* NOTE : The average gift card merchant has $19,000 in additional revenue in the bank after their first year of offering gift cards.
Why can't I just use my cheaper gift certificates?
For most merchants, the dramatic sales increase of merchant gift cards easily justifies the moderate cost. But there are other details to consider when comparing the cost of a paper gift certificate program to an electronic gift card program.
The manual tracking of sales and redemption of certificates is time consuming and does not easily confirm the amount of outstanding balances or the authenticity of certificates as they are redeemed. marketing pieces. If a consumer has value stored on a card, they are more likely to carry it and use it than a paper certificate. The cards can be used in so many other ways than just the traditional gift-giving mechanism that the merchant is used to.
Cards have become an incredible marketing and promotional device that can independently drive increases in sales and average size of each sale. There aren’t many merchants who consider a paper gift certificate program a profit center. But Gift cards are different, that is why every major retailer in the US now offers gift cards INSTEAD of paper certificates.
How does a Gift Card program work?
Merchants usually display their gift cards right by the cash register or other point of sale. Customers purchase cards with cash, check or credit card for any dollar amount the merchant approves. The merchant activates the card by swiping it through their POS terminal and executing an activation transaction for the desired dollar amount. The card is now ready to be used at any participating store location.
How do I know I will sell more gift cards than gift certificates?
The big advantage merchant gift cards have over paper certificates is the ability to create a “grab-and-buy” display at the point-of purchase. Through effective merchandising, prepaid gift sales can surge to many times the previous level of gift certificate sales. What works for the big national retailers like The Home Depot® or Barnes & Noble® can work just as well for smaller chains and single location merchants.
Isn’t a gift card program rather costly?
Not anymore! We have a great starter program that is only $12.95 per month. And you get 25 free cards to start. After you experience the success of a starter program, you may want to move up to a full color custom photo quality gift card with your exact logo or we can create a new one for you.
What are the benefits to a merchant’s customers?
Gift, loyalty and stored-value acards are more exciting and convenient products to buy, use and give than paper certificates or coupons. Loyalty cards identify and reward a valued repeat customer, and stored-value cards provide a convenient way for customers to pay for frequent purchases.
Can a merchant use their cards at more than one of their locations?Can a merchant have single billing for multiple locations?
FirstAdvantage gives merchants the flexibility to have active cards at a single location or at multiple locations. A check box on the agreement specifi es whether the merchant has one or multiple locations. Merchants will be billed per location for each location using the gift card program. Merchants have the option for individual statements per location or for one statement that summarizes the activity for all locations.
How long does it take to get a gift card program in place?
In as little a 7 days you could be selling professional high quality gift cards with your business name, address and phone number.
How will the merchant know how many transactions were completed?
Each month, the merchant will receive a mailed statement detailing the transactions processed during that month. The statement will detail the type of transactions and the day they were processed. A summary of all the transactions for the month is also provided. You can also view the report online or even pull a daily report right from the terminal.
Can my customers use the gift card over the phone or internet for a purchase?
Yes, cards can be used either in a swipe mode or through a manual entry into the terminal.
What other ways can gift cards help my business?
Building Brand Identity A merchant’s card can serve as a function of the marketing department as much as it does a financial one. The card is basically a “Billboard in a Wallet”. Every time a card holder opens their wallet or purse, they will see the customized card and be reminded that they have value on the card. The merchant’s name will be placed in the mind of their customer every time they see the card…the card is a walking advertisement.
Also, as those card holders talk about the card to other people, the card is doubling its effectiveness. One of our sales phrases is “Let the card do the promoting”. Although the card program can be a critical part of any advertising campaign, it has the ability to sell and/or promote itself.
For example, restaurants may have their servers wear a sample card around their neck or as a button on their shirt with a catchy statement about the program. Many stores have contests based on who can sell the most cards. The possibilities are endless and the marketing representative in the organization is a critical influence in the decision. Using cards as marketing tools can turn a good program into a great one.
Can I issue a card for Merchandise Returns?
Absolutely! Many national chains are now using gift cards for handling merchandise returns for store Credit which used to be a cumbersome process for merchants—especially when the goal is to minimize cash refunds. A stored value or gift card provides an automatic, declining-balance tool for issuing, tracking, and redeeming store credit, without extra paperwork or recalculation of unused balances.