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'Tis Still the Season
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VeriFone recently announced that One Network was the first company to
implement VeriFone’s e-Gift Card payment application. The application is
based on VeriFone’s Integrated Payment Solution (IPS). One Network, an
e-commerce exchange service and back office transaction processor, is now
able to offer brick and mortar merchants online payment processing and
e-gift card programs.
Using the program, One Network merchants can automatically processes
e-Gift transactions made in store, deduct the purchase amount through the
VeriFone Omni 3200 POS terminal, and provide the merchant with real-time
account information online. The program converts paper-based gift
certificates to mag striped gift cards which function similar to a
pre-paid balance, but don’t be fooled. They are not stored value cards.
Instead, when the card is swiped at the POS, it accesses a database which
stores the account number and the dollar amount. Benefits
To Merchants
“Merchants told us that e-gift applications were a high priority, so we
are delivering those applications for IPS today,” said Betty Kolanczyk,
director of retail/financial processing markets for VeriFone. “IPS
allows merchants to meet the rapidly changing payment needs and
preferences of consumers today while knowing that the system’s open
architecture allows the flexibility to quickly adapt to future industry
trends.” The
IPS e-Gift Certificate allows merchants to:
IPS allows One Network customers to reduce the processing, accounting, and
tracking costs that paper-based certificate programs require. (According
to Ernst & Young, those costs can average between $7 and $8 per
certificate.) Paper-based gift certificates go into a cash drawer, have to
be counted and reconciled at the end of the day, then must be transferred
to a safe and finally converted to cash. With the VeriFone IPS program,
all those activities are transparent to the merchant.
Also, with a paper-based system, if the entire face amount of a
certificate is not used, merchants must either refund the cash, which
means lost profits, or reissue another paper certificate, which is wasted
time and effort. With the electronic e-gift card, the card is simply
returned to the consumer, as a credit or debit card would be, and the
database has stored the remaining balance on the account.
Merchants in both brick and mortar and online environments will be able to
design e-gift cards that create a unique brand identity and tie those to
their Web sites. Consumers can go online, to the merchant’s site or to
the One Network site, and get access to their account. Depending on the
merchant’s preference, it can appear that the merchant or One Network is
providing the value-added service.
A huge benefit to merchants is the data the cards can gather. At any time,
a merchant can view their outstanding gift card balances, know what’s
been sold and where it was sold. They can also see how much has been
purchased above the gift amount. IPS functions via the Internet to provide
merchants with valuable information regarding their customers’ shopping
demographics. All this data is available in the database and can be
downloaded and archived as long as the merchant wishes. Benefits
To Customers
VeriFone and One Network know that while a gift card may be great for the
merchant, no consumer is going to use it unless it offers a consumer
benefit as well. Two such benefits are the reduction of wallet clutter and
the elimination of the need to track purchases since they are stored
online. Also, if the card is misplaced, the customer may not have to loose
their funds. With a paper certificate, the clerk always issues that
warning “Don’t lose it- it’s just like cash.”
Consumers can purchase One Network’s e-Gift card at stores or online for
any denomination. Using One Network’s Web site, customers can also view
their account information and load value onto their cards 24 hours a day/7
days a week.
Customers can also add value to a card through a gift account. For
example, a parent can give a college student a card with a certain value
and then they can add to that value online.
Additionally, the cards can be tied to a recurring event, such as a
birthday or anniversary. A standing request can be generated to be
notified in advance of an event and be prompted if you would like to issue
a gift certificate. The certificate can be issued through e-mail on the
same day, or it can be mailed to the purchaser who can wrap it and give it
to the recipient personally.
The card can also be used to limit the types or amounts of purchases. In
issue 99:08:02 we told you about Web sites that encourage responsible
spending by youths by allowing guardians to put parameters on the types of
products purchased. e-gift cards can be restricted in the same fashion.
They can be restricted to a particular merchant, such as only the college
bookstore. Or, the types of items can be limited, such as the cardholder
can purchase food, but not cigarettes or beer.
One Network was founded in 1998 to provide back-office, transaction
processing services to emerging e-commerce companies as well as
established brick and mortar businesses. By connecting virtual and
physical storefronts to secure Internet information services, One Network
provides solutions for electronic gift certificates, loyalty programs,
digital authentication, and billing services.
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