Gift cards can be offered in one of two ways. A “closed-loop” programme allows the retailer to issue gift cards both onsite and online. The customer will then only be able to spend funds at the issuing retailer, or they can be designed to be accepted and redeemed at specific partner merchants or participating retailers in a “restricted loop.”
Alternatively, an “open-loop” programme will run on an unrestricted basis, where the card purchased will bear a MasterCard or Visa logo, allowing them to be used anywhere worldwide and online. Our system can also be configured with the co-brand merchant to restrict spending in specific merchant categories, for example a competitor retailer.
Generally, open and closed loop gift cards are not personalised with the cardholder’s information. Our card can be designed to offer additional features as well as integration to the retailer’s existing loyalty programme.
Choosing to brand the cards with a MasterCard or Visa logo gives customers the flexibility to use the cards at other stores and even online, generating a supplementary income when clients are not shopping at co-brand businesses.
The cards can also be monitored for usage patterns and behaviour to gain valuable insight on clients’ shopping habits and trends.
A branded card not only offers prestige, but most importantly such a product can generate a significant amount of profit for the company and increase brand awareness.