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by: AlDuggan
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You've decided to finally add gift cards to your business. A wise decision. But now you wonder if that wasn't the easy part. You wonder where to start and what card supplier is best for you? Now, you recall why you had delayed this decision - there are a lot of variables to think about. How can you make the right choice for your business? To help you through that process, you will need to narrow down the decision to a few key areas. By doing this, you'll figure out the partner that most fits your card marketing needs.

Where's the best place start?

Great question. Chances are you've already received calls from Independent Sales Organization (ISO) reps who offer a variety of services you need - credit card and check acceptance, transaction processing equipment (terminals), payroll services and even gift cards. You may have received responses from gift card companies after requesting a call by virtue of an online lead form. You've heard the pitches - but how do you choose the right gift card company for you?

Let's start with some simple questions. If you are speaking with an ISO, you should ask about which gift card suppliers they are representing. Some of these gift card companies offer a variety of different financial services to go along with the gift cards. Others are solely in business to service those who need to develop a gift card program. These suppliers will likely be better suited and more experienced to help craft a program that fits your needs.

Look closer. Ask whether they are using a proprietary gift card system and platform or whether they are licensing a system from someone else. Ask them what their stated uptime is. (It can be aggravating to have a system go down for some technical issue right when you are trying to process or sell a card to a customer.) Ask what kind of customer service program is in place. Is their phone support available on their dime? How about email? Is there an all-hours, all-days service coverage in place if a problem comes up?

You'll also want to take a look at the transaction processing programs offered by the companies you are evaluating. Many offer "flat-fee" programs that include all program activity for one monthly fee for a large block of transactions. Other programs may bill on a "per-transaction" basis where the monthly fees are reduced or eliminated and the merchant pays a small fee when a card is activated, value is added, it is redeemed, or when a customer checks a card balance. Often the best way to choose between these options is to estimate card sales and the resulting transaction activity and compare the costs of each plan.

Once your gift card program is launched, you'll need to track results. To this end, you should inquire about the types of reports that will be made available to you and how you will be able to view and access these. Essentially, the more reports you can see, the better. Once you get used to what all the reports and data mean, you will be able to have a firmer grasp on how well certain aspects of your program are functioning.

What About the Hardware?

Equipment and point-of-sale (POS) system compatibility should also be considered before settling on a gift card supplier. Gift card platforms are software applications that are downloaded into a merchant's credit card processing terminal or integrated into the merchant's POS system. Various gift card companies' applications are certified on specific terminals and POS systems. This should be one of the first questions you ask - will this company's gift card processing application work in my terminal environment? Is it integrated into my POS system? Look for companies with higher numbers of compatible terminal and POS systems - chances are they have more equipment experience and partner relationships. This is a sign of market strength and legitimacy.

The Right Cards

When it comes to the design of your card, there are a couple ways to go: standard or custom. Many gift card suppliers will have a set of pre-made card designs which are targeted toward a range of different business categories or even specific holiday events. This allows for quick turnaround, sometimes just a week, before you can offer your customers gift cards. With standard cards, you often have the ability to add a logo, text and a business name to the design. So, if you are interested in this type of card design, be sure your supplier has a wide range of designs available to you. Some gift card companies also provide you with web-based tools to help you visualize your card design. These may allow you to personalize your card with fonts and color schemes and view your card design before you make a commitment to a gift card program.

The other option is the custom card. While these may be a bit more pricey and have a longer turnaround time, the result is a gift card that captures your brand, image and personality. These can coordinate your marketing efforts and branding. Some questions here to ask relate to the scope of the card supplier's design abilities. Some suppliers can offer a design staff to create your card design for a manageable fee. Find out whether they offer web or email proofing to make design approval as rapid as possible.

A Few Final Questions to Consider

Rather than stop with card design, find out what additional merchandising tools are available. Some card suppliers will have an array of card carriers and hangers, display racks, posters, signage and envelopes that will help you drive awareness and sales. Presentation at the place or point of purchase can dramatically boost card sales...and profit for you. Some suppliers can also provide you with various gift card presentation products that you can sell along with your gift cards.

Finally, it's good to look into how a gift card supplier communicates with its clients and merchants. The gift card business is growing and changing. If you partner with a company that can keep you knowledgeable on the latest tips, techniques and trends, you can learn a lot and increase sales. So, find out whether they offer various newsletters and email-based notifications to keep you up to date on tips, services and new products.

You've made a good decision to pursue a gift card program. Once you hook up with a gift card company, it can be tricky to convert your program to a new one later. So, do a little research, ask the right questions and you should be able to find the right gift card supplier to meet your business's needs.

About the Author

Al Duggan is an expert in developing a gift card program and is the VP of Business Development for Valutec Card Solutions, LLC, a Metavante (NYSE:MV) company, the nation's largest provider of plastic gift cards to small to mid-sized businesses.

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