CLOSED LOOPS GIFT CARDS:
Closed loop gift cards and some prepaid media are limited to a specified retail or point-of-sale organization. For example, a Target gift card can only be redeemed at a Target. There are many types of closed-loop products including gas cards, phone cards, transit tickets, restaurant cards, event tickets, grocery store cards, and music cards.
Better ATM® Services' patented technology enables ATMs to dispense gift cards and other prepaid media directly from an ATM's cassette just like cash. Our unique card format includes a three-panel card made of a rigorously tested, poly-based material that is one-third the thickness of a PVC card much like transit passes. Produced on a sheet that fits the ATM cash cassette, the snap apart, three panel approach allows for the greatest profitability. A single panel can be used for the main gift card or prepaid offering, while the second and third panels can be used for advertising, main product selling points, promotional items, or additional gift card combinations.
Here’s what you need to know about Closed Loop Products and ATMs.
1. Gift Card Sales Data
2. Special considerations
3. ATM Capabilities
4. What Do I Need to Do to Start Selling Open Loop Gift Cards from My ATM?
1. Gift Card Sales Data
- The average value of closed loop cards grew significantly in 2011, increasing by more than 70 percent compared to 2010, with the total average amount spent on closed loop gift cards increasing to $291 from $161. (First Data)
- In 2012, gift cards became the most popular gift among consumers shopping for friends and relatives and the tool of choice for businesses hoping to motivate employees, customers and partners. (Incentive Research Foundation)
- Given the choice between cash and prepaid cards, prepaid cards are preferred by a ratio of about 7:1. In fact, almost half consider prepaid cards to be the best gift. (Incentive Research Foundation)
- Gift card purchases are no longer tied to holidays and special occasions. Nearly 20 percent of gift cards were purchased for no particular reason. (First Data)
2. Special considerations
- Any gift card program can be printed on Better ATM® Services’ gift card sheet and dispensed from the ATM.
- Better ATM® Services can assist in coordination of the printing as we have identified and certified specific gift card manufacturers.
- Better ATM® Services has “ride along” coupon and incentive offers that can be coupled with traditional gift card offerings.
- Need help designing your gift card or thinking about a redesign? What about the artwork for each of the panels? Better ATM® Services recommends Tactix Creative. Back to List
3. ATM Capabilities
Better ATM® Services has certified ATM models and dispensers from several manufacturers including Diebold, Triton and NCR. We are available to discuss how we can address your specific needs.
Better ATM® Services' Phase II technology is necessary if the closed loop gift card requires activation at the time of purchase or if the ATM owner prefers to limit risk by activating the gift card at the time of purchase. Otherwise, an active gift card can be placed in the secure ATM and other security measures such as teleprompt activation can be used to reduce the risk of theft or shrinkage. Back to List
4. What Do I Need to Do to Start Selling Open Loop Gift Cards from My ATM?
Contact Better ATM® Services at info@betteratmservices.com or call us at (480) 296-2033 and let us know you’re interested in selling closed loop gift cards. Back to List
