A well-strategized gift card program can improve your sales as well as your brand. Many companies, both big and small, have gift card programs that have improved their business practices. If you are looking for a new way to boost your sales or improve the public perception of your company’s brand, choosing the right gift card program for your business can make substantial improvements to your company.
Here at CardPRO Systems, we offer gift card processing to our clients and many of them have seen a dramatic improvement in both their sales and their brand’s awareness. As the most transparent and trusted credit card processor in the industry, let us fill you in on how gift card processing can help your business.
Open Loop vs. Closed Loop Gift Cards
The first thing you need to consider before deciding on a gift card program is whether to accept closed loop gift cards, open loop gift cards, or both.
The major distinction between open and closed loop gift cards is where they are accepted. Closed loop gift cards are gift cards that are only accepted at one business, or a group of businesses owned by a single company. This was the first type of gift card program to be implemented, which was done by Blockbuster to replace their gift certificate program which proved to be susceptible to counterfeiters.
Open loop gift cards, on the other hand, are issued by banks or credit card companies and can be redeemed at essentially any place of business that accepts credit cards. Open loop gift cards have become increasingly more popular in recent years as it is a more socially acceptable gift than paper cash.
Both open and closed loop gift card programs have benefits and pitfalls. Be sure to consider whether you want to accept gift cards only issued by your business or if you wish to accept gift cards issued by banking institutions and credit cards before signing up for this service with us.
How Gift Card Processing Can Help Your Business
There’s one universal truth in the credit card processing industry: customers like to have multiple payment options. By accepting gift cards, you are giving your customers another way to purchase your goods. This can help your brand’s reputation, especially if your competitors don’t accept gift cards.
In addition to another payment option, there is a multitude of benefits your business can reap through gift card processing. Some of these benefits are:
- Attract New Customers: One of the greatest benefits of processing gift cards is that it can help attract new customers. Gift cards, as their name implies, are usually given as gifts so if an existing customer gives your gift card to a friend, that is a new customer you have acquired for a little price.
- Take Advantage of the Uplift: Gift cards also allow customers to purchase more expensive products from your business. If a customer has a gift card, they are more likely to spend a little extra money in order to get a higher quality product.
- Strengthen Relationship with Existing Customers: By offering gift cards to your customers, your brand’s relationship will improve in the eyes of existing customers.
If you are interested in our gift card processing services, or any of the other credit card processing service we offer here at CardPRO Systems, you can contact us here or call us at 844.385.2273.