Benefits of Prepaid Cards for Retailers
Prepaid Cards are transforming the retail environment.
Retailers can offer their customers branded open-loop or closed-loop Prepaid Card
solutions.
- Closed-loop card programs restrict the cardholder spend to a specific
store, or group of stores.
See Gift Cards for more information.
- Open-loop Prepaid Cards allows funds to be used at POS within the
traditional retail environment wherever the MasterCard® or Visa brand is accepted,
online or to access cash from ATMs.
See Prepaid Cards for more information.
Closed-loop card programs restrict the cardholder spend to a specific store, or
group of stores. Open-loop Prepaid Cards allows funds to be used at POS within the
traditional retail environment wherever the MasterCard® or Visa brand is accepted,
online or to access cash from ATMs.
Paper gift vouchers require cash to be given back to consumers if the full value
of the voucher is not used in the initial purchase. An Altair Prepaid Gift Card
solution enables the merchant to keep the cash by debiting the value of the transaction
from the balance of the card. The remaining balance is stored on the card for your
customer's next visit, while the balance of the funds are held in a settlement
account. Paper vouchers systems are also often complicated and the inventory is
very difficult to manage.
Customers benefit with greater choice, convenience, and security. As Prepaid Cards
do not require cardholders to have bank accounts or to be credit-worthy, they are
not required to pass credit checks. Altair's Prepaid Cards offer all the convenience
of a credit card but without tempting your customers to overspend and get into debt.
Around 22% of the value spent on prepaid cards in the UK is expected to come from
prepaid gift cards by 2010. (Source PSE Consulting)
Retailers can implement loyalty and reward programs that increase customer retention,
drive repeat purchases and create awareness of new products and services.