The Benefits of Gift Cards and Loyalty Cards for your Business

What are the benefits of gift cards and loyalty cards for your business? Here's an insightful article, courtesy of Cardservice International, about the smart cards:

One of the first public ventures of smart cards was the American Express card "Blue" card. Customers attach a smart card reader to a computer keyboard and swipe the card for internet transactions.

This has been a slow start in my opinion; but the American Express smart card application will become more prevalent because of the security benefits.

What really got the ball rolling was Bill Clinton signing into law in June of 2000 the "Electronic Signatures in Global and National Commerce Act". Digital Signatures are now legal and Smart Cards store electronic signatures.

In fact the Federal Government has mandated the use of smart cards for military and civilian employees - which begins this year.

1. The internet is exploding in growth. Smart Cards "authenticate" the user and reduce fraud. As fraud is reduced, customers (and your competition) will embrace the internet even more.

The sooner you come up to speed on smart card technology the further ahead of the competition you will be. Customers will want to know that your internet site is "Smart Card" enabled as time goes on.

2. In the storefront environment Smart Cards will be used to better "authenticate" the purchaser - eventually with digital representations of finger/hand prints, and even handwriting. Your ability to better screen out stolen and fraudulent cards will vastly improve.

3. Smart Cards are great for gift and loyalty programs. Imagine your "filling" a card with a gift certificate amount. The card will have your business name and logo as a private label. The customer will simply present the card to your staff member who will "swipe" the card on your Smart Card enabled terminal.

The money on the card will be reduced by the purchase. No more giving change on gift certificates. What could be better then people walking around with YOUR business name and logo on a card in your customerâs wallet.

Customers simply purchase your private label card, which is activated and filled with money by swiping the card on your credit card terminal. The card is then ready for use within seconds. When the customer makes a purchase, the card is simply swiped through the terminal, and the amount spent is deducted from the card.

Again, if you are currently using paper gift certificates you are probably handing our cash refunds for the unredeemed value. Over time, this can add up to a lot of money. Gift cards eliminate this problem because the unspent value stays on the card. And when the gift card is expended, it can be easily recharged, turning a one time user into a lifetime customer.

4. Gift Cards will double as merchandise return cards, as well as stored-value cards for benefit plans, employee incentives, and special promotions, etc.

Does your current Internet Software Solution, PC based software, or Terminal and Printer support Smart / Gift / Loyalty cards?

Make sure your credit card processing provider is up to date on new technology. Nothing could be worse then investing in an Internet Gateway, Software, or a Credit Card Terminal and then finding out your investment has become obsolete.

Your magnetic stripe reading terminal particularly will be phased out over the next coming years - unless the terminal can be adapted to Smart Cards. Know the right questions to ask.

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