gift card question

Does anyone know how gift cards work?

Cost, etc.

Do you have a POS? If so they probably offer a gift card package that will work seemlessly with it. It will likely cost between $1K-2K. If not there are independent companies who offer them. It is usually less expensive through them but more hassle. They will sell you the cards which you sell to customers. When the customer buys a card you charge them whatever amount they want to put on the card. You swipe the card through a credit card machine and it authorizes it just like a credit card. Basically the third party acts as the information warehouse for the gift cards. They store the data of which card it is, how much credit they have, when it’s used, etc.

If you don’t have a POS and already have a credit card machine capable of doing the authorizations it’s probably a good deal for you. If you do have a POS you will almost definitely want to go through them. Otherwise your books will be a nightmare. Since they know they’ve got you by the shorts they charge accordingly.

I use a system called VALUELINK offered thru my bank. We activate the cards by swiping them thru our credit card terminal. Redeeming the gift cards uses the same process. A receipt is printed which shows the remaining value on the card. You can also swipe the card to do a balance inquiry. Each swipe is $.25.

The cards were custom printed with our name, and we had our choice of 6 backrounds. I believe they cost $.50 per card, and we bought about 500.

The cards are reuseable, so I utilize old ones for my charity requests.

You can also purchase enclosure cards or envelopes the cards fit into. My bank gave them to me for free.

VALUELINK also gives you a website were you can track your activated cards.

At any time you can run a report for all card activity, to prevent theft of misuse.

As a marketing tool, theres nothing like having my giftcard in the customers wallet staring at them everyday. And theres nothing like distributing 25 $5 gift cards to get people to give you a shot.

I do.

Call me or email for details. There are too many options for this blog.

I vouch for RBSLynk. I’ve used them for years and have had nothing but positive experiences.